A simple way to stop big bills catching you off guard

Managing your finances when you’re self employed isn’t always easy. A lot of us end up living invoice to invoice, spending what lands, then something like an insurance renewal or a tax bill turns up and suddenly you’re scrambling.

The fix isn’t complicated. As soon as a payment lands, move a percentage straight into a separate account before you touch it. A lot of people start around 20 to 30% for tax, though it depends on your situation, so it’s worth checking with an accountant for your own number.

Worth doing the same for yearly costs too. Add up everything that hits once a year, insurance, subscriptions, your ICO fee, accountant fees, and divide by 12. That’s roughly your monthly buffer.

It doesn’t fix everything overnight, but it does mean the big bills stop being a nasty surprise.