If you’re clever and work hard, there is good money to be made on the Internet. You could get a side gig creating your own blog or website, or you could tutor online. You could even offer your own online store. Some people start with a side gig online and then quickly (perhaps more quickly than they initially planned to) make the leap to full-time self-employment working on the web.
Indeed, this is a dream for many people, but working for yourself online comes with some drawbacks, especially if you quickly made the leap to self-employment without giving full consideration to your financial situation.
If you experience a few late paying clients or if your emergency fund isn’t quite as large as it should be, you may find yourself unable to keep up with your bills. If you find yourself in this situation, here’s what to do:
1. Lower any expenses you can. Cut the cable if you need to or lower your cell phone plan to a more affordable one. If you still have a landline, switch to a VOIP provider like Ooma to save $20 or more a month. Ideally, you should make these changes when you make the leap to self-employment, before you are short on cash.
2. Save a portion of your earnings every month. In the beginning when your business has not taken off yet, saving a portion of your earnings is difficult, but it’s something you must do because you need a cushion for those times when clients don’t pay on time.
3. Consider taking a short term loan. Find a responsible lender and take a short term cash loan. If you need the money immediately, you can sometimes get the money in just a few hours. While this type of service is a nice safety net, don’t rely on short term loans regularly. This should be a last resort.
Making your own living online can be like a dream come true for many. Just make sure your finances are in order so your dream doesn’t turn into a nightmare.