It can be hugely difficult, especially when it comes to saving money. Workload maybe short and varied, but financial saving needs to be a priority. There can be a lot of stressed placed on freelancing, especially with people not knowing when the next workload is coming and having to figure out the taxes by yourself. Budgeting is one of the most important parts and freelancers need to master it, in order truly benefit.
Know Your Spend
Nothing is more important than living within your means. Whether you work full-time or freelance, spending a lot less than you earn is hugely important for budgeting. Create a spreadsheet, get bookkeeping software or use some way to track your finances. Find an average figure for the month and work around that to ensure that you don’t overspend. Don’t forget to add your monthly out-goings and don’t forget to save some money in-case of surprise emergencies. This way you have an average number and the amount of money recorded in order to help you through the month.
Think Business, Think Personal
Crossing your business and personal could have a detrimental effect to you finances. You could find yourself excessively paying for personal items of business, therefore leaving you high and dry. Separate your accounts and ensure they don’t cross over in order for both personal and business benefit. It will help you in terms of tax, business expenses, business income and helping you keep your personal life personal. This helps you know where you are stood financially.
Can You Afford To Save?
Savings can be a freelancers most important tool. Some prefer to save 10%, others feel the need to dip in and out with guilt. If you want to prepare yourself, you need to open up savings accounts to help you save for important times, or emergencies. This can help you in the long run, especially when finances may dry up. Whether you want to separate into lifestyle savings and business savings, you need to put money to the side to help you through difficult times.
Do You Have A Plan For Your Money?
People save aimlessly and wonder what to do with it, making some panic with the idea of saved money. This can cause panic spends or simply dipping in and out of funds for little things, which will eventually add up. Find a plan for your money whether it is to launch your business, purchasing a car or simply getting a new laptop. This will help you know what your goal is and why you’re doing it.