By Karin Mizgala, Co-Founder and CEO Money Coaches Canada
More Canadians than ever before are choosing self-employment. According to Statistics Canada, the current number is 2.8 million. Many more—maybe you—hope to start a business in the coming years.
It’s not surprising; being self-employed allows you a certain level of self-determination that is often lacking when you are an employee. But greater freedom also comes with greater responsibility, especially around money management.
Not only must you manage cash flow to sustain the business and yourself, you are also fully responsible for funding your retirement. In traditional employment, employees often have access to a pension, or retirement contribution matching program; not so for the self-employed.
But if you’re self-employed, you shouldn’t look at this as a drawback, like everything about self-employment; retirement planning is just another area where you can be empowered to succeed. In fact, in a world where defined benefit plans in the private sector are becoming rare, even traditionally employed individuals would do well to think like the self-employed in this area. Continue reading