Tips for the self-employed

● “Self-employment is not for the fainthearted,” says Susan Erasmus, a former teacher and medical journalist. “I have been freelancing for almost five years, and while it’s wonderful to have so much more freedom to structure my own time, it does come at a price: there is no predictable salary at the end of the month. Income could vary from feast to famine.”

To stop yourself from lying awake at night, she gives the following tips:

● Make sure you have at least enough capital to cover your expenses for three months.

● Cut your fixed costs to the bone, as this lowers the monthly financial pressure. When you have a bumper month, pay extra into accounts such as municipal ones. You will be relieved later when your finances are tight.

● Be disciplined about claiming expenses from the taxman – it’s worth paying an accountant to maximise these for you.

● Make sure you at least have a decent hospital plan, gap cover, disability insurance and home and car insurance.

● It costs money to have a salaried job – commuting and work clothes. Work out how much you can save with these expenses reduced, and put it aside for a rainy day.

● Work your contacts, as that is how a steady flow of work is achieved in the long run.

● Remember that people in permanent jobs also face job insecurity as they could be retrenched if the company goes through a bad time.