Being self-employed is akin to having one’s own business. The self-employed individual is his/her own boss. The success of his/her business depends on how the self-employed individual guides the business to earn revenue and use it to cover its expenses. However, many may find this a challenge as they may lack the financial literacy to do so.
Financial literacy is critical for the self-employed individual to establish a system to record his/her income and expenses, maintain reliable and accurate records and review his financial records. At the same time, he/she needs to understand the position, roles and responsibilities in an agreement. With a clear understanding and good financial literacy, he/she will be aware of and make the necessary preparation and changes towards an efficient business operation.