Saving for Self-Employment

Self-employment can be a very risky endeavor, and isn’t always immediately rewarding. Should you start saving up for your self-employment before you ever begin?

Risking it all to become self-employed can be a very good experience. Self-employed professionals learn a lot about themselves within the first year of self-employment - and not all of it is positive.

Self-employment is scary because you have nothing but yourself and your own resources to fall back on. When the money doesn't come in, you may not get to eat. Even with a great budget, self-employment can bring periods where you see no money coming in at all.

Should you save up for your self-employment before you ever take the big step and become a self-employed professional?

In most cases, it is probably a good idea to have a little bit of money to fall back on in case of times of lean, if nothing else than for peace of mind. However, if this simply isn't possible then don't assume that you're doomed to failure. If it makes you feel better, then save up. It's a little safer this way and will help you out when the money doesn't roll in.

To read more about budgeting for self-employment, read Your Self-Employment Budget.