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.
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.
Love this! Thanks for the tips!
Glad you do. Thanks for reading.
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!
Having a business account does help. Thanks for reading Kristi.
Very Helpful post!
Thank you.
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!
Glad you love the tips Taylor.
Absolutely spot on advice. Freelancers often become complacent and then regret when it’s too late!
Yes. Best to take the finance bit very seriously from the beginning. Thanks for reading.
I think staying organized is key… and your post summarizes it very well. 🙂
Thanks Pragati.
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
Yes it would be. Good luck with it all.
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.
Glad you like the tips. Thanks for stopping by.
Great tips on handling the financials of blogging. It can be very intimidating at first. But post like this gives you much insight.
Glad you like the tips Shana.
Great tips. Thanks!
Thanks Mitch.
Great tips, thanks for sharing!
Thanks for reading.
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
Yea it can be so hard. Thanks Sam.
thanks for sharing
Thanks for reading.
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!
Glad you like the post. Thanks for reading.
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Such a good post, thank you!
My pleasure.
These are great tips that anyone can use regardless of whether you are freelance or not.
I agree.
thanks a great post and a wonderful sharing. I like your site very much.
Glad you do 😊
Being as a freelancer your tips are worth for me thanks for sharing.
Ah nice. Thanks for reading.
A question for you, is it hard to write a blog?
thanks for information 😉
It depends on whether you have an interest in writing or not.
You can earn money from the blogger. I have only one site is making very good adsense.
Very true.
great article.
Thank you.
Everyone forgets to budget for their taxes and then they freak out when it’s time to pay – that’s the most common issue people have with freelancing. The laws are different here in the United States but overall your tips were good for freelancers everywhere.
Yes we never remember to set money aside for the taxman. Thanks for reading.
These are some great tips. I really agree with keeping a separate bank account for your business income and expenditures. Easier to tell what expenditures are going towards your business and what your exact income from your business or side hustle is. Thanks for the info, great post!
Glad you like the tips.
Informative article and i m happy to see your article and getting the lot of financial and Tax return services. Once again, thank you so much Fashion And Style Police.
Thank you.
Great article. Keep it up.
Thanks.
Thanks a lot for publishing this unique and informative blog.
Thank you for reading.
Thanks for sharing
Thanks for reading.
As a freelancer you must be very carefully, when doing the future budget. Be conservative and spend only money that you already have.
Doing budget and following it is a key.
That’s right.
Thanks for sharing Tips on personal finance. I am going to follow your tips.
Thanks for reading Joseph.
Thank you for sharing information ..
Thanks for reading.
The most useful information I’ve read. Thank you so much.
Thanks for reading.
pretty good information.