Controlling capital being a outworker

Scrutiny of your finances

"Play to your strengths: no one will achieve excellence in an area of weakness," Leonard says. "To live a strong life and to enjoy success in your career you should capitalise on your strengths and simply manage around your weaknesses." A good method to manage capital as a freelancer is to document your earnings, recurring payments and unforeseen costs. Here is a way:
- Detail all the recurring expenses including rent, water and lights, insurance etc.
- Look after a written record of your wages - with time you will be able to anticipate your more profitable months.
- Dont forget the tax man and payments that are due to him.
- Keep a credit card on hand for months where you may be a bit strapped for cash - be careful to use your credit card wisely as to not go into too much debt.

Expend a smaller amount than you make and invest a bit

Hand in hand with spending less is simplifying your life, says Leonard. "Remember that every possession you buy or contract you sign (monthly subscription, club membership or cell phone contract), brings with it a burden of cost and responsibility. The difficulty with development is that we are caught in a swirl of more and more, faster and faster, to the extent that the slightest upward turn in our income is speedily consumed by an unappeasable list of wants. If we dont establish margins in our budgets we wont get to the point of earning enough or being able to save.

"An effective technique is to set up a monthly debit order into a unit trust investment and to forget about it. You only have to make a decision once (as opposed to every month or year) and a portion of your future income is committed to investments. Cellphone and holiday companies catch you in a similar way, in one moment's decision you are committed to paying them for a long time."

Obtain the best return on your nest egg

"Saving R1 000 per month at a return of 8% will give you R3,4 million after 40 years," Leonard claims. "You can yield R6.3 million if you increase the return to 10%. The best long term results are derived from buying into companies. Shares and unit trusts are they way to do this - shares can be bought indirectly through unit trusts and directly throught a stock broker.

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Tax can be a difficult matter while you are a self-employee. To avoid the hazards of tax and submitting your tax returns, ponder the employment of a tax consultant. Always talk to acquaintances and relations in a related state of affairs. Discover who does their taxes. It is constantly difficult to beat individual know-how, and then you can be guaranteed a honest view. Mostly significant, once searching for a tax consultant, you need someone who you can trust with your finances. Consequently here are several useful guidelines in finding an honorable tax consultant.

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