Many internet marketers have a knack for making money. However, many of them have terrible money management and financial planning skills.
Despite making a good living, they waste their money. It’s not unusual to see GoFundMe campaigns launched by web marketers in the midst of a crisis.
You must be financially wise and keep an eye on your finances to avoid this. At the end of the day, it doesn’t matter how much money you make – it matters how much money you keep.
Let’s take a look at nine essential tips for online marketers on financial planning tips that every online marketer should know.
1 – Invest in a rainy-day fund is job one for financial planning
In the event of an emergency, you should have at least three to six months’ worth of costs saved up. In the event that you are unable to work as a self-employed person due to illness or hospitalisation, your earnings will suffer (unless you have systems in place).
Inexperienced and intermediate-level marketers are not in a position where their businesses can function without their direct involvement.
When times go tough, you’ll be able to rely on an emergency fund to get you through.
2 – For tax purposes you need to keep accurate records
With an internet business, you’ll be in control of your own bookkeeping, unlike in an office job where your employer takes care of the accounting and taxes for you.
You can quickly compute your taxes if you keep track of all of your business’s income and spending. A CPA’s job will be easier if you keep good records.
3 – Get out of debt as soon as possible
Don’t spend all of your online earnings at once. Your first focus should be on paying off your debts. All revolving credit accounts must be paid in full.
Don’t let your credit score degrade because of unpaid student debts. Pay your bills on time and in full at all times..
4 – Make a SEP-IRA contribution
People who work for themselves can use a SEP-IRA as a retirement savings account or as a form of self-employed pension. Contribute to your retirement account to take advantage of the tax benefits.
5 – Have adequate health insurance coverage
If you don’t have enough insurance to pay your medical expenses, you could be in serious trouble. Make sure you have comprehensive health insurance.
If you need a root canal, you’ll need to set aside money for dental expenses, which can be just as expensive.
6 – Plan ahead of time and stick to it
Every firm practices financial planning, and yours should be no different. Compile a list of all of your expenditures, and then note your remaining revenue. Assign a budget to each of your business’s expenses and look for ways to reduce them.
Avoid going into debt by not overspending in any one area. As a result, many marketers end up in credit card debt after purchasing expensive courses that cost anywhere from $2K-$5K.
Most of the time, they’re essentially rehashed content in a new format. You don’t have to get into debt to grow your business.
7 – Investments in other assets is the seventh financial planning step
Wealth creation is not a one-stop shop for making money online. Investments in stocks or even rental properties may be an option if you’re making enough money online.
Investing in these types of assets will allow you to increase the value of your money while also increasing the variety of your holdings.
8 – Look for lawful strategies to lower your tax obligations
A CPA (Certified Public Accountant) may be able to help you find strategies to legally lower your tax burden.
A room in your house could be called an office if you work from home and earn money online. Home office tax deductions are available for those who qualify. If you want to lower your taxes, there are many ways to do it.
9 – Plan ahead for your golden years
At first, it is easy to forget that you will get old someday. You may not be in the mood or have the energy to work at this time.
You’ll be able to retire comfortably and with a high standard of living if you start saving for your golden years early and plan ahead.
Keep your online revenue in a savings account and plan for the future.
Everyone in the web marketing industry should take note of the nine points above on financial planning and apply them to their business and personal lives. As soon as possible, you should learn how to budget and manage your money.
If you enjoyed this post on financial planning for online marketers then please consider sharing it. If you would like to leave a comment use space below or contact me via the contact form.
Mike Gaudreau is the owner of The Wealthy Boomers, a site devoted to helping seniors make money online. Mike resides in Montreal Canada.
You should assume the owner of this website probably has an affiliate relationship and/or another material connection, to any suppliers of goods and services that may be discussed here and may be compensated for showing advertisements or recommending products or services, or linking to the supplier’s website.