Once upon a cup of coffee, a friend wondered what this ‘entrepreneurship’ rush was all about. Everyone is currently quitting their job and ‘going solo.’ Some are well prepared, and others, well, just like it happens with other fads, they are letting the tide carry them to whatever bank.

Those who have attempted self-employment will tell you that it is not an easy thing to do. There is of course that good feeling of having something to yourself, something you are running. But then there is that feeling you get towards the end of the month when you aren’t really sure that there is money in the bank. A steady paycheck is a good friend, and having none will keep you worried, unless you are doing really well. If you ask most people who are currently employed, they will tell you that they have an option of starting their own business, but the fear of unsteady income keeps them hooked to their employer.

Self employment thus requires one to be very frugal when money is in plenty, at least for the days of inadequacy. There is a lot of self-employment literacy being peddled everywhere, but we have just two important tips for our self-employed reader.

1.      Live months ahead

When money is in plenty, do not get too excited. There are more months coming, and instead of ulcerating yourself worrying about unsteady income, how about you get the coming months covered with what you have right now? Pay rent in advance, say three months. Buy enough electricity units. Pay your water bills in excess. Cover your tomorrow with today’s income.

2.      Be organized!

As a self-employed individual, you cannot afford to be careless with money. The lack of a steady paycheck does not allow you that luxury. No matter how much pressure you are under, be organized when spending. For example, you cannot live without a budget. Impulse buying for you is a no no! There is too much at stake and you are on your own! Unless you want to find yourself buried in debt.

3.      It helps to have two separate bank accounts- one for your business and one for yourself. These two cannot be mixed. They don’t go too well together.