Whether you work for yourself or as part of an organisation, financial efficiency in your career is of paramount importance. You want to make sure that you are always able to afford your expenses, but sometimes that is easier said than done if you haven’t prepared effectively.
Don’t worry; we have got you covered. In the following paragraphs we’ll breakdown the key aspects of maintaining financial efficiency in your career.
At the heart of ensuring financial efficiency is planning. You’ll never be truly financially efficient if you haven’t got an appropriate understanding of your projected income and expenditure.
Even if you aren’t one for paperwork you’ll need to familiarise yourself with your finances, especially if you are in a business where your earnings are likely to fluctuate and it is difficult to predict expenditure.
To ensure that you remain on top of your finances it makes sense to hire an accountant. They will be able to give you a clearer idea of how much revenue you can generate to warrant certain expenses and they’ll also help you to keep a tighter control over your cash flow.
Selecting the right accountant is key; you want to find someone approachable who offers a good level of service. A great place to start is to read online reviews of any prospective accountants to see how other people have got on with them.
Another essential part of financial efficiency is being able to generate a sustainable income that enables you to cover your expenses. This will be slightly different depending on whether you are employed or self-employed.
There is no denying that no work can be considered permanent when you are self-employed, unless you have some sort of long-term, iron clad contract with a client. Therefore, the best approach is to focus on marketing yourself and generate income from a range of clients.
A client could leave you tomorrow and you don’t want to be left with a huge hole in your pocket as a result. A general rule of thumb is that you should never have one client make up more than 30% of your income, that way if for whatever reason they leave you; you won’t be left in an extremely vulnerable financial position.
If you are employed you can think of things as being a little bit more permanent. Rather than finding different clients like a self-employed worker, you’ll be focused more on career progression so that you can not only command a higher salary, but also make yourself indispensible to your employer through constant development.
One career path that has plenty of scope for development is in the beauty industry. If you have a passion for beauty it is worth considering undertaking an apprenticeship to jump start your career and gain valuable experience in a job capacity. As you develop your skills you’ll become a more coveted individual and expose yourself to higher pay grades. As a result you’ll find yourself becoming much more financially efficient.
Now that you have an understanding of your finances and have begun to generate a sustainable income you are well on your way to becoming financially efficient. However, you’d be surprised at the number of people who earn healthy salaries but are far from financially efficient due to their inability to budget.
They may earn a good salary and understand what expenses they have to cover but without a tight control over their budget they are fighting a losing battle.
You need to get into the habit of budgeting everything so that you are able to more than cover your expenses each month. Some people do this naturally whilst others benefit from utilising a budget planner to make a note of everything.
If you don’t have an accountant it is even more important that you take a proactive approach to budgeting.