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Is this a wise way to save money?

190E(Taylor’s version)

Im hoping that if I get accepted for pip my first payment can buy me the things I need to stay regulated and organises(for now) so you think a good idea afterwards to help ward off overthinking etc would be to put it aside in a savings fund so when I do go full time self employed I can have savings for pausing my self when I have bad weeks or sickness or holidays snd mabie also another fund to cover my expenses and investment?

I know my pip is likely to be lower rate daily and no mobility so it won’t be much but it beats stressing over using tok much of my income on travel strings,union fees(which helps me stay insured and get ants money owed etc) and subscriptions to services I need for inspiration and backing track oh and nkt forgetting I’ll need an accountant once a year 

all going well I hope to put 10% aside a week too but this is when I’m earning a lot more than i will be to start 

also I need to save incase my uc decreases which on medium to high musican wages I’ll likely nkt get uc at all apart from possibly rent on mid

Parents
  • 190E(Taylor’s version) said:
    all going well I hope to put 10% aside a week

    To think if this is sensible, it would mean if you worked 50 weeks a year, you could afford 5 weeks of a break using your savings.

    That is a bit less than permanent staff get in companies - they get I think about 24 days plus 12 bank holidays, so just over 7 working weeks.

    Are you saving anything towards your pension? I know it seem a long way away but remember the state pension is looking like it is moving to 70 or over in the next decade or tow under the current government discussions.

    I would be tempted to set aside 15% for contingency funds and another 10% towards your pension.

Reply
  • 190E(Taylor’s version) said:
    all going well I hope to put 10% aside a week

    To think if this is sensible, it would mean if you worked 50 weeks a year, you could afford 5 weeks of a break using your savings.

    That is a bit less than permanent staff get in companies - they get I think about 24 days plus 12 bank holidays, so just over 7 working weeks.

    Are you saving anything towards your pension? I know it seem a long way away but remember the state pension is looking like it is moving to 70 or over in the next decade or tow under the current government discussions.

    I would be tempted to set aside 15% for contingency funds and another 10% towards your pension.

Children
  • in reply to Iain

    Im going to be paying class 2 ni for the first 12570 snd class 4 therefore after this is I too of my works pension scheme 

    as for weeks off I require 2 weeks at Xmas and 2 throughout the year but also I need to consider sick days etc 

    being a sole trader these percentages can come from any of my income really I plan to have a minimum of 3 months wages set aside before I go full time and to keep up with that throughout my carrer 

    and if I do end up being a higher earner I won’t be spending too much on Luxeri items too often 

    I won’t do the whole live within yoir means I will live not too diffent to how I already do that includes getting the best value for money and buying things that are good but also a good price 

    I think self employed people need to be better wirh money in some ways 

    i plan on not paying my self a wage for a while unless my uc drops off and when I do pay my self a wage I will do all my outgoings for that week and then take my weekly wage minus any investments or savings to make sure A I have cash flow consistently and B I have a back up plan for non wage weeks 

    my plan is to start local and see where I go from there too