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Personal Finance Tips for the Freelancer/Self Employed

As a Freelancer/Self employed person, you have to remain on top of your personal finance to keep track of your money. Being your boss means you are in charge of everything, which means there is no one to blame when things go south. Focusing on your craft and ignoring your personal finance would only to money problems. And that is the last thing you need as a small business owner. Which is why you may find this personal finance tips post is useful.

 

Should You Take A Pay Cut To Advance Your Career image

 

The law here in the UK states you get yourself registered as soon as you start making money from your craft. So I got myself registered as self-employed when I started making money from my online gigs. I have been registered as a self-employed for over 3 years now, and I have been making a steady income from my business since then. For those who wonder what I do for money, I make money from this blog, my social media platform, and from my book – How to Cash in as a Blogger. I am also a copywriter, social media manager and blogger outreach consultant.

The personal finance tips that have help me as a freelancer and self-employed person are as follows –

 

Have a separate bank account for your business

Having a separate bank account for your business is the best way to stay on top of all transactions. Running your business from your personal bank account is not the smart way to go as you could easily get confused with your business transactions and personal spending from the same bank account. There are many bank accounts to choose from, one of them being Think Money basic  bank account so it makes sense to go for one of them and keep your business separate from your personal life.

 

Keep on eye on your money

Once you have a separate bank account, the next thing is to keep an eye on your money. You should keep track of all incomings and outgoings so there are no surprises. Having a spreadsheet where you record all incomings and outgoings helps. I have a simple sheet on Microsoft Excel, and it helps me keep an eye on my money. I update the sheet every month and that way I know where my money goes and how much I bring in every month just by having a quick glance.

 

Budget for your taxes

As a business, you most likely would have to pay some form of tax. It is best to get this sorted asap, and not wait until the last-minute like some business owners would do. Budgeting for your taxes would also help you pay it up quickly without any problems. I like to get mine books done and my taxes paid up once the tax window opens. That way I know it is done for the year, and I can focus on other things.

 

Don’t spend all you have in the period of feast

As a Freelancer, you would know all about how unpredictable the freelancing life is. Freelancing is a feast or famine career. We usually earn different amounts of money from month to month, depending on the number of jobs that come our way. So we need to be on top of our budgeting game in order to make it in the famine period. Don’t spend all you have in the period of feast. If you do, you would be stuck with unpaid bills in the famine period.

 

Are you Freelancer? Do you have any personal finance tips to share? Please sound off in the comments section. Let’s rub minds

 

Thanks for stopping by.

 

*Collaborative post.

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42 responses

  1. I only recently monetized my blog, and initially, I was going to just use my personal account because it doesn’t make that much, really. But when I sat down and started thinking about it, I realized it would be so much easier if I streamlined the business into a second account. That’s what I did, and it makes things very clear on to what’s coming in and what’s going out. Valuable advice you’ve given here!

  2. I love all of these tips! I need to practice better saving habits and be more in top of keeping an eye on my money. I used to be so on top of it, but I’m slacking these days!

  3. Great tips! Have the aim of paying off all my debt before the end of the year so an excel sheet would be perfect for tracking this

  4. These tips are so on point. I love that you mentioned being prepared for tax season. So many people just spend spend spend, thinking it’s just a write off so it doesn’t matter, just to end up having to pay all this back… and not being prepared.

  5. Great tips on handling the financials of blogging. It can be very intimidating at first. But post like this gives you much insight.

  6. i think you have covered some of the most important factors. I am freelancer on fiverr and i know how difficult it becomes when you fail to manage your personal finance

  7. Great info. So many people start doing what they love and are surprised when it takes off that they forget they are a business and that they are the ones responsible for handling the money. Most people become their accountant until they can afford to hire one!

    The more info on the topic out there, the better. Thanks!

  8. Pingback: Personal Finance Tips for the Freelancer/Self Employed — fashionandstylepolice – Finance Lion

  9. Pingback: Finding the Time to Freelance and Parent - fashionandstylepolice fashionandstylepolice

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