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Learn to Reduce Spending. Developing your budget will help you spot areas where you're spending more than you realized. But the next step is more difficult: cutting your spending on unnecessary items. This will require some soul_searching on items both large and small. For example, do you really need a ŭ coffee every morning? (Some will say yes, while for others the answer is no.) Could you make do with a smaller, older car? Instead of an expensive vacation this summer, could you try a "stay_cation," where you stay home (much cheaper) and relax there? All these choices are very personal and many factors come into play, so there's no right answer for most of them. But laying them out will help you prioritize your spending, and that will help you spot places where you can save money.

Just remember that being self_employed means that you must also pay the self_employment tax, so include this in your calculations. The self_employment tax is double what you would pay in Medicare and Social Security taxes if you were employed.

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