Money Tips Every Freelancer Needs to Know

*Collaborative post.

Freelancing and money image

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Being a freelancer sounds like a great career choice and something that many people may choose to do. Whilst it definitely has its perks; like being able to manage your own time and being able to earn money for yourself. When it comes to being a freelancer there are also lots of other things to think about.

Money is one of them. When you do not have a regular cash flow, as you would with a standard, get paid every month job, finances become harder to manage. You need to think about what might come in (and when) as well as how this will balance against things coming out. This can be a hard balance to achieve as each month is not likely to be the same when it comes to incomings.

That said, when it comes to money tips as a freelancer, there are plenty of things that you can do to make things that little bit easier for yourself. Want to know more? Here are some of the money tips that every freelancer needs to know.

Make a monthly budget

One of the best things that you can do for yourself when it comes to managing money is to make a monthly budget of everything that you need to pay out. Note down the key payments that you need to make each month. This includes rent (or your mortgage if you own your own house) as well as your debt repayments, groceries, car payments, and your utilities. When you know this, you can think about how much you need to send out every month and therefore the minimum that you need to have coming in to keep yourself in the black.

Freelancer tips image
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Save for an emergency

It is thought that you need to have around 3 months’ worth of your paycheck in your savings account as an emergency. However, when you are a freelancer, this may vary greatly. It is a much better idea to aim for around the 9-month mark to be saved away for when you may need it. This means that if anything should happen with your business and you need to close, then you know that you have some money put away to help you to cover your bills whilst you start your new project, or secure yourself a job.

Keep your money separate

You might find it much easier to manage your money and minimise the risk of any debt – something that the DTSS U.S. Complete Freedom system will show you is a really negative thing – if you keep your money separate. Have a bank account that you use to put your freelancer earnings in and then transfer the money into another bank account where you pay your bills from. This may be a little on the fiddly side, but it makes things much easier to manage and to keep on track of both your earnings and your bills too. Plus, it will make it much easier to save and to repay any debt that you may have.

Being a freelancer can be great and there plenty of benefits. But it is important to remember that it is not always plain sailing and despite all your best efforts there can be times when things don’t quite go the way that you planned. This means that it is best to do whatever you can to get a handle on your money and manage it in the best way that you can.

 

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