Working for yourself is great, apart from financial gain, it gives you the freedom of doing what you love and doing it in your own style. But in doing so there are many mistakes that can be made and here are the 3 most common mistakes entrepreneur mistakes and how to avoid them.
Not having insurance
This is one of the mistakes I made when I started my entrepreneurial journey, you know when you have a formal job, your boss or company are obligated by law to give you some sort of insurance, this means when you get sick or an accident there is a company that will help you to pay hospitalization bills.
Most of us when we step out of having a job zone we do not do the same, sometimes without knowing or trying to save some money.
The problem with this is that life happens and if you are to get an accident or get sick you will put yourself or your family in danger of going bankrupt.
What to do?
Search in local areas if there are some insurance companies that offer life or accident insurance packages, if you are not making much money, start small, and in the future, you can have a better insurance package.
Not having a retirement fund
Again when you have a job, automatically you have a retirement fund, you, your employer, and the government are contributing to this plan each month.
When you are self-employed, there is no one doing this for you, you need to do it yourself, depending on the county you are located you might find some banks or financial institutions that can help you to start your retirement fund.
If you do not want a financial institution to manage your retirement fund, you can start to save money that you can use when you retire.
I know most entrepreneurs myself included think that we will never retire, and that is a valid way of thinking but there is time in the future when you will want to slow down and relax or travel the world and work less, you need some funds to help you with that.
How to start your retirement fund
I will recommend saving 10% to 25% of your current income for future use, you can open a saving account, you can start a retirement plan, or whatever is available where you live.
Depending on your income and your age, you can retire with a lot of money, start today.
Not paying tax
I know this sucks, you work very hard, you make your money and you have to pay some of it to the government.
Unfortunately, in most countries you are obligated to pay income tax, this can vary from one country to another, for example here in Mexico you can pay up to 33% of your income as an income tax.
Again the percentage of the taxi you pay depends on the county and the amount of money you make.
There are legal ways to pay less tax, I can not discuss them in this post but you can consult accountants in your local area and they can give you some advice on how legally to pay less tax.
Do not avoid paying tax, this can get you into very serious trouble.
How to start paying taxes?
Check out your country’s regulations on the income tax, consult your local accountant film and ask them questions, figure out how much you need to pay in tax, start putting away the cash you need to pay, and pay it each and every month.
These are the 3 most common mistakes entrepreneur mistakes and how to avoid them, the question is how many of these mistakes are you making? let me know in the comment section below.