It is a misnomer that professionals do not need assistance in financial planning and managing their money. Professionals are masters in their chosen field and financial management may just be Greek to some.

Financial planning or shall we say, saving money, is one of the most important aspects of modern living. It is even more essential for professionals who find it hard to save money on low incomes. While financial planning requires taking hard decisions, it is in no way a suggestion that some expenses be totally cut off totally. It is about striking a balance between income and expenditure by making adjustments to existing expenditure.

Evaluate your Worth 

As a professional your first step should be to get paid according to your worth. It is essential that you determine your worth. This would involve evaluating your skills and the competition level in the market. Take into account your performance and productivity and compare it with what the competition has to offer. Getting paid according to your actual worth is crucial because even a thousand dollars less per year can have a substantial cumulative effect in the long term.

 Budgeting 

It is a lot easy to spend less than to earn more. Regardless of what you earn, your goal is to spend less than what you earn. The thought of reducing your expenses may sound painful at first but when you really get down to budgeting, you will find that it does not involve big sacrifices. A little bit of cost cutting here and there can help in saving a substantial amount. Once you make a budget, stick to it even if it involves making lifestyle changes.

Prefer Debit Cards

It is easy to forget that a credit card is actually real money but with a debit card you can never overspend. If there is not enough money in your bank, the charge will not be accepted. If you must have a credit card, make sure that you use it discriminately and pay your bills in time so as to avoid paying interest.

Savings Plan 

You must have a savings plan in place. Unless you have one, you will keep on postponing under the guise of so-called necessities. As a general rule keep aside at least 5-10% of your earnings and then prepare a budget for the rest. A solid savings plan will come in handy in case of emergencies.

Invest wisely

As a self employed professional, you need to create a retirement plan on your own as there is no employer to help you. Consult a financial planner if you do not have investment skills.