Personal Finance Skills Every Blogger Should Know
If you are a professional blogger, there are some financial tools you should learn yesterday. Life isn’t easy for the professional blogger, especially not at first. Working for yourself, you fall out of the lines that people and governments use to classify working people. You may find you owe more on taxes than you thought possible, or that having to pay for your own health care is more of a drain than you anticipated. Fortunately, there are some established ways to save money and turn blogging into an even better career.
Techniques for Becoming a Financially Savvy Blogger
If you are a blogger, you likely work for yourself. This state of affairs presents challenges all its own. For one, you don’t have an employer who is going to pay part of your taxes, increasing your annual burden. For another, you won’t be receiving benefits, so you’ll have to either buy those or go without. Finally, your income might not be as steady as it would be if you had a salary.
None of these are reasons to give up your career as a self-employed blogger/writer/whatever. It just means that you have to learn the skills people use to thrive in this field. All of these techniques are available on money blogs around the internet, but even people who have heard of these ideas don’t necessarily apply them. If you learn and apply the following, we guarantee you’ll net more income every week, month, and year.
1. Hire a Tax Professional/Accountant. Like many, this writer neglected to take this step for the first few years of blogging, and paid the financial price. It’s not that a blogger can’t complete their own taxes – they can – it’s just that professionals will be able to do it much more “neatly” and will be able to identify more opportunities for savings. Working with a professional will help remove much of the guesswork that so often accompanies doing your own self-employed taxes. You’ll also be able to write off the cost of the professional’s services on your taxes the following year. Finally, this ongoing relationship will help you establish a plan for optimizing your financial strategies moving forward.
2. Save 30% for Taxes and Pay Quarterly. If you are a self-employed blogger in the United States, it’s likely that you will owe about 30% in taxes before your write-offs and deductions. Unless you are saving portions of every check, you probably won’t have enough come tax season. To avoid this, save 30% from every check as soon as you get it, and make sure to pay your taxes quarterly. This will keep you from incurring interest because of late self-employment taxes.
3. Deduct Deduct Deduct. Fortunately for you, there are many options available for write-offs for self-employed people. Do you have a portion of your home used only as an office? Write off the mortgage payments, insurance, and utilities that go toward making that space work. Do you eat out for business purposes? Keep those receipts and deduct 50% on your taxes next time around. Do you buy equipment for work? Keep those receipts and include every single item. Deductions are your right, and they’re the only way to significantly cut back on the money you pay in taxes, so be vigilant in this area.
Being a self-employed blogger is challenging, but it’s also rewarding in many ways. If you can make it work financially, this is one of the best careers you can have, and your friends are probably envious. Keep finding ways to be more savvy and to increase the scope of your work and you’ll be very happy with the way your career develops.
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