Being a podcaster in charge of your own podcast has plenty of perks. Chances are, you’re self-employed, so you get to choose which topics you want to talk about on your cast. As well, you enjoy great independence and autonomy in your work. However, there are drawbacks, too. As a self-employed person, you may not have benefits. You probably also have to take care of your own taxes. You may even face problems with cash flow. That’s why it’s important to actively plan your financial future. Here are four ways you can do that.
Know Your Expenses
If you don’t know how much it costs to own and operate your podcast, you’ll most certainly run into cash flow problems. It’s important to know both your variable and fixed expenses. Once you know that information, you can work out a budget and savings plan. For example, you’ll need to purchase the equipment for recording and editing your podcast. In addition, you’ll need to pay for podcast hosting, which can vary greatly depending on the hosting service you use. If you have your own website, then there is the cost for the domain and hosting that as well. Not to mention any web development services or graphic design services that you see fit for creating the brand around your podcast.
Work Out Your Quarterly Taxes
Being your own boss means that you have to work out your own taxes. It’s important that you put aside enough money so that you can pay your taxes on a quarterly basis. If you’re not sure how to do that, you may want to speak to a financial planner or an accountant. Depending on the type of business you have registered with your state for your podcast, it will likely be a 15% income tax.
Handle Your Debt
As in any business venture, accumulating debt in the first few months or years is common. The same is for when you’re first starting out as a podcaster. You may have to rely on credit cards or loans to get you through the times when you’re financially strapped. If you find yourself in debt, don’t panic. Instead, work out a plan to pay off your debt a little at a time. Working with a professional can teach you the ways of wealth management, as well as help you with your taxes, savings, and other financial matters. Before contacting a wealth manager, prepare all of your financial statements including incoming and outgoing funds, your assets, and any other money-related statements you have.
Work Out Your Insurance Options
Insurance counts as one of the big reasons why people opt out of self-employment. They don’t feel that they can afford the cost of insurance, so they stick to “regular” jobs. However, it is possible to find reasonable insurance rates on sites like HealthCare.gov, which allows you to pursue your dreams of being a podcaster while still taking care of your health.
If becoming a podcaster is your dream, then you probably know that you have to take some practical steps to make that dream a reality. Of course, this includes planning your shows and buying the equipment necessary to run the show. However, it also includes taking care of your financial business, too, so that you can keep your podcast on the air no matter what’s going on in your financial life.