Tips to avoid financial tension while working for a startup
Working in a startup can prove to be a different ball game altogether. The uncertainty and question of stability might creep up. Of course, it is a challenging and exciting experience, but when it comes to financial concerns, taking a risk isn’t the best thing to do. The late-night meetings and targets that have to be met are enough to raise adrenaline levels. You might burnout (figuratively) more often than you could’ve imagined. You have to anticipate and plan your finances so that you needn’t panic later on. Here are some tips you could use:
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Keep an emergency savings account
Save the salary in the initial months as it will help you against any bad times at your job. This rule applies if you are working in a startup or not. The money you save can be used as an emergency fund and you could invest it in something that gives you good returns.
Check your credit card expenses
With a lot of uncertainty heading your way, expenses incurred through your credit card can be dangerous. Ensure that only a small percentage of your salary goes in repaying your credit card bills, at least during the initial months.
Track the tax system
Filing a tax return and understanding the rules can be a difficult process, but you have to do it to avoid a bigger threat. Consult a tax professional to ensure that you know about the tax deduction system. Do not ignore the tax revenue from your salary that goes to the government.
You might be hired for a senior role considering the requirement in the startup that you are working for. The pay might be great, and you might feel like you can afford everything that you always wanted. But with all the salary hikes, there are risks involved as well. According to the market condition the performance of the startup may vary. At such times, your salary also may increase or decrease.
After joining a startup, you have to be patient before plunging into important decisions such as buying a car or home. EMIs will not vary according to your salary. These are big commitments, and you have to be cautious of the end result.
Keep an eye out for ways to earn and save
Of course, time constraints will be an issue while working in a startup. But you need to ensure you have a back-up plan in case the startup doesn’t kick off too well. Freelancing is a way to ensure you have money coming in irrespective of how well your starup is doing. You will have to constantly check for new projects and clients. In case you find yourself getting too worked up about your rent and other dues, then being your own boss is the best way to ensure you are tension free.
In recent years freelancing and making a few extra bucks has become very lucrative, rewarding, and welcoming.
You might have known that things won’t always be smooth while working in a startup. But you needn’t worry about money issues if you take a few cautious measures. So take a deep breath and enjoy the ride!