I have been freelancing for almost 7 years now and I had to learn on the job. The many articles I read before and while on the freelancing journey did give me tips and tricks to help me as a freelancer, but none of them really prepared me for how to manage my money as a freelancer. When it comes to managing your money as a freelancer, you need to have your numbers head screwed on tight and quick or risk losing the plot. The life of a business owner can be a rollercoaster. You have to be prepared for the busy times as well as the not so busy times.
Here are a few tips that should help in managing your money as a freelancer –
Set your prices
One of the first things I did was to set my prices. I have a fixed price for every service I offer. That way I don’t have to research or think about what price to give a client for a job. I know what I am worth and I do market research every now and again to make sure my prices are competitive.
Send out invoices
I know many freelancers don’t send out invoices to clients for various reasons but I always make sure my clients receive an invoice for every job. That way I have a trail of all my jobs, clients, and prices. It also makes submitting my tax returns easy since I have all the records in one place.
Take payment in advance
I like to take payment in advance where possible. That way I don’t have to chase payments (that is a job in itself). I appreciate clients that pay quickly and in advance. Going forward, I will be requesting to take more payment in advance. It saves time and effort.
Save for the rainy day
Most freelancers will know all about how busy work can be in some months and how quiet it can be in other months. I have been freelancing for a few years now and I know the pattern. My advice to not just the freelancers but every business owner is to save some money for the rainy day. Don’t spend all your earn, stash some away for when work is quiet.
Don’t work for free
These days, I thankfully don’t have people asking me to work for free anymore. My work pays my bills and more, so working for free isn’t really an option. I know my worth and I am very quick to ignore anyone who questions it by asking me to work for free or for a ridiculous fee. I manage my money by not working for free.
At the end of the day, we are all different and we will manage our money in our own way. These are some of the ways I make it work for me. Being able to work for me for this long is a dream come true. It has completely changed my life for the better and I am grateful to be able to do all that I do. Apart from this blog which is my main source of income, I am also a Content Writer, Blogger Outreach Consultant, Social Media Manager, Blog Coach, Authour, and Vlogger.
How do you manage your money as a freelancer/business owner?
Used to have own business with ex. Indeed saving money and allowing yourself a monthly income is something you learn to average out over time so you always have money put aside for times its quieter.
You learn that one the hard way. At least I did. It’s going back alot of years now however the rule of thumb hasnt changed
Yes, many people have to learn the hard way. It is one of those you never really understand until you experience it. Thanks Carol.
That’s Beautiful!!
Thank you.
Good one. It is good to be a stylish freelancer. Check my blog
Thank you.
Great article! I think its really inspiring that you have made your blog your main source of income, iv just started blogging and i haven’t got to the point of monetising it yet, but i hope i can achieve that in the future. If anyone would like to check it out, its a Personal Finance related blog…. Managing money is a skill everybody should learn, whether they are a business owner or not, its a real shame it isn’t taught in schools these days.
Yes, it is a shame. Parents have to make sure they educate their children on how to manage their money.
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Budgeting is really my weakness! Thanks for sharing this one!
Thanks for reading 😊