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How to Cope as a Freelancer by Ageing your Money

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I left traditional employment after having my twins, and I have been freelancing ever since. The decision of not going back to my old job after pregnancy was kind of made for me. Going back to my old job was not going to be worthwhile so I created jobs I could do from anywhere for myself. Being a freelancer/self-employed is not easy but it is worth it. I always weigh all options in life, and the pros of working for myself from home massively outweighs the cons, which is why I am still doing what I know how to do best.

 

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How to cope as a freelancer by ageing your money

Coping financially as a freelancer has been a learning curve. I have had to learn how to ask for the right amount of money for what the job I do. I have also had to learn how to manage my money so it covers all my living expenses and a bit more. Having some kind of savings is important for every one of us, regardless of the work we do. But it is really important when you are working for yourself, as you really have no guaranteed income. The only income that is guaranteed is what you currently have in your bank account. It is very possible to not make £1 for a whole week, only to make as much as £1000 the next week. Which is why you have to learn how to age your money.

 

Ageing your money

Ageing your money is something I have always known about and I have put into practice for as long as I have been earning money. However, I became more aware of this after reading the Wall Street Journal Bestseller – You Need a Budget by Jesse Mecham, earlier in January. The book really resonated with me. It was so good, I couldn’t stop reading it. I finished reading the entire book on my Amazon Kindle within 3 days.

I picked up a lot of tips from this book and I recommend it to all business owners, freelancers, self-employed, and even those doing traditional jobs. The book opened my eyes to ways of really making my money work longer for me, and I picked up many vital tips that I have now implemented in my life.

The whole idea behind ageing your money is you not spending your income as soon as it hits your bank account. It can feel like a delaying tactic but it really works. All you need to do is to try it for a month and see the difference in your bank balance and your mental health. Ageing your money stops you from living pay check to pay check. It helps you get out of debt and stay out of debt.

 

You Need a Budget: The Proven System for Breaking the Paycheck-to-Paycheck Cycle, Getting Out of Debt, and Living the Life You Want image

 

Having a budget helps age your money

Having a budget helps you stay on top of your income and expenses. Your outgoings are all planned and you are in control of your finances. Being a freelancer means you never really know how much you would make from month to month, so having a realistic budget is important because it gives you that peace of mind.

My income varies from month to month. I have been freelancing for a few years, so I know on average the minimum I would make, so I plan my bills with that in mind. Also, I make sure I keep any extras I get for months when I am short. I age my money by spreading my bills so they all don’t go out in the same week. That way I am never short of cash, and I can keep aside payment for each bill weekly.

 

Ageing my money is how I am smashing my freelancing/self-employed world. It works great for me.

Are you working for yourself from home? How do you stay on top of your finances?

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12 responses

  1. I’ve been self-employed as a writer for nearly 20 years. Over that time finances have been a rollercoaster – going from invoicing £15-17,000 a MONTH to having absolutely no commissions at all for a month or so … I learned two important rules. 1) Never spend money you haven’t got – no credit cards, store cards etc. 2) During those really good months, squirrel funds away into another account, or Premium Bonds etc. That then becomes your rainy day fund to cover you over the quiet months. It’s good to plan ahead!

    • Great tips here. Self-employment is really a rollercoaster. Spending money you haven’t got is the fastest way to the bottom.

  2. I just started my journey of working from home, and I’m doing my best to navigate the self-employment world. There’s a lot to do and keep up with, but I definitely think self-employment is the best route for me to go and I know I will ultimately enjoy it in the end.
    My husband still works full-time, so that does help us in the financial department, but once I get my business off of the ground, I’ll also be working “full-time.”
    Thank you for the tips about budgeting! I will keep those things in mind for both my husband’s income and my own future income.

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