You’re a self-employed Business Relationship Manager. How can you manage your finances more effectively?

1 Set your rates

One of the first steps to managing your finances is setting your rates as a BRM consultant. You need to consider your skills, experience, value proposition, market demand, and expenses. You also need to decide whether you will charge by the hour, by the project, or by the value you deliver. A good way to start is to research the average rates for BRM freelancers in your niche and location, and then adjust them based on your unique selling points and goals.

2 Track your income and expenses

Another key step to managing your finances is tracking your income and expenses regularly. You need to have a clear picture of how much money you are making and spending, and where it is coming from and going to. You can use a spreadsheet, an app, or a software tool to record and categorize your transactions. This will help you monitor your cash flow, identify your profitable and unprofitable activities, and plan your budget and taxes.

3 Save for taxes

As a self-employed BRM, you are responsible for paying your own taxes, which may include income tax, self-employment tax, sales tax, and other levies depending on your location and business structure. You need to save enough money to cover your tax obligations and avoid penalties and interest. A good rule of thumb is to set aside 25% to 30% of your income for taxes, and pay them quarterly or annually depending on your filing requirements. You can also consult a tax professional or use a tax calculator to estimate your tax liability and deductions.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?