All articles · 2025-12-26 · General
How do you build financial freedom as a self-employed person? (What really works)
Many self-employed individuals strive for more financial peace but remain stuck in short-term decisions. Financial freedom, however, begins with…
By Jan Hermans, CEO & founder of Lyff.
The core of progress lies in a fixed methodology. Not ad hoc investing, but a process that works month after month: a clear salary strategy preferably anchored in a loan policy, an automatic investment percentage, and a fiscal plan that prevents you from losing money without realizing it. Self-employed individuals often underestimate how much they miss out on due to lack of planning, while small interventions can quickly become noticeable.
True freedom arises when your financial decisions become predictable and repeatable. This means: regular checks, annual evaluations, and consciously choosing when to take money out of your business or leave it in for growth. Whoever builds this system creates a buffer, clear prospects, and more freedom of choice in their professional and private life.
In short: financial freedom is not a vague ideal, but a concrete system that you build step by step. With the right structure, every self-employed person can achieve this. Make an appointment with our experts if you want to examine your situation.
The control room of your company
In my book Fiscale Shortcuts voor managementvennootschappen (Fiscal Shortcuts for Management Companies), I often compare your business to a shoebox with taps. Without structure, your income flows in privately, and you pay the top price in taxes. With Lyff., we advise entrepreneurs to take a seat in the control room. Here, you operate three crucial levers: your salary, your assets, and your future. These levers are communicating vessels. If you lower your salary too drastically to be fiscally efficient? Then you often unconsciously reduce your pension accrual space via the 80% rule.
A powerful mechanism to maintain this balance is the remuneration mix. Instead of solely focusing on a high gross salary, we look at alternatives such as warrants or stock options. The big advantage? These instruments are often taxed at a flat rate at the time of allocation, while they can still count as regular remuneration for pension calculation purposes. This way, you increase your future capital without paying the full amount of social contributions today.
Real estate as a fiscal leverage
For many Belgian entrepreneurs, real estate is the preferred path to freedom. But the way you finance it determines whether it's leverage or a millstone around your neck. The shortcut here is the use of your IPT (Individuele Pensioentoezegging) [Individual Pension Commitment]. Instead of repaying capital privately with heavily taxed net salary, you can take out a bullet loan where you only pay the interest privately. Meanwhile, you build up the capital within your company with tax-deductible premiums.
Suppose you borrow 300,000 euros. Repaying privately often costs your company more than double gross to generate that net amount. By using your pension plan as collateral or for advances, you put gross money to work for your private assets. This is what I call internal financing: strategically deploying your own resources without being dependent on the whims of external lenders.
Frequently asked questions
Is a liquidation reserve always the best choice for withdrawing money from the company?
Not necessarily. Although the rate of 10% upon constitution and 5% (or 9.8% according to new rules) after the waiting period looks attractive, your money is inactive in the meantime. In times of inflation, you lose purchasing power. Sometimes a diversified investment via a Tak 6 (Branch 6) structure or utilizing VVPR-bis is more interesting because you can better match timing and profitability with your personal goals.
How do I determine the ideal salary for my 80% rule?
The ideal salary is in the defensible middle of the Gaussian curve. It must be high enough to build a solid pension capital and cover your standard of living, but not so high that you drown in the highest tax brackets. We look at your total package, including benefits of all kinds, to optimize the tax burden.
Want to know more about these mechanisms? You can find all the details in my book Fiscale Shortcuts voor managementvennootschappen.