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Where do you start?
Heres how he said toinvest in yourself and your financial future.
Thats because the traditional advice is geared primarily toward those with a regular job and stable income.
It also gives them more time to recalibrate and get their business back on track.
These are homeowners insurance, auto insurance, term life insurance and health insurance.
According toRamsey Solutions, health insurance plans alone start at around $350 per month for self-employed people.
Despite the cost, having these policies can protect self-employed individuals financially if something happens and they need them.
To mitigate some of this risk, Kim suggested paying off all debts aside from a mortgage.
According to him, self-employed people have to focus on everything from marketing their services to managing overhead costs.
Worrying about other bills or debts makes it harder to stay clear-headed and focused.
While it can be difficult to plan for retirement, its important for self-employed individuals to do so.
Kim said self-employed individuals will want to get a self-employed retirement plan.
Note that these plans havecontribution and income limits.
These limits typically change every year.
Have a Health Savings Account
Thenext big investmentis a health savings account (HSA).
These accounts have a triple tax benefit tax-deductible contributions, tax-free growth and tax-free withdrawals for qualifying medical expenses.
Youll need a to be covered under a qualified high-deductible health plan to qualify.
Theindividual plan contribution limitis currently $4,150, but its set to increase to $4,300 next year.
Under the family plan, the contribution limit is $8,300 but will increase to $8,550.
you might use the funds for things like K-12 tuition, apprenticeship programs, college andeven student loan repayment.
Kim added that leftover funds can be used for other purposes, like funding a Roth IRA.
Unlike an IRA, however, 529 plans have no annual contribution limits.
Get a Taxable Brokerage Account
This is another account thats funded with after-tax money.
Any dividends you receive are taxable, however.
Youll also have to pay capital gains tax on withdrawals.
Invest In Real Estate
There are several ways to get started with real estate investing.
Each method has its pros and cons, so do your research before choosing one.
At this point, youll be completely debt-free and have some much-needed and much-deserved mental and emotional peace.
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