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Money Management Tips for Freelancers

It’s great to be a freelancer. Ever since I started my journey as a freelancer I have been earning a comfortable steady income. But it’s one thing to be able to earn money and it’s another to be able to manage it. This fact led me to write this Money Management Tips for Freelancers post.

 

 

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When I started freelancing, I was glad I was able to pay my bills and a few luxuries, but I knew that if I wanted to do bigger things in the future I had to find a way to make optimum use of my money.

Just like every regular worker, freelancers need to know how to manage their money. If you don’t have a plan on how you should allocate the money you earn or what you would like to achieve in the future then you’ll find yourself spending money on things that are completely unnecessary.

Knowing how to manage your money is the beginning of having a comfortable living. And if you’re a newbie freelancer or you’ve not been managing your freelancing income, then now is the time to start. Here are some money management tips that have helped me.

 

Money Management Tip 1 – Track your money

This is the first thing I believe every freelancer must do in order to manage their money. You need to be aware of how much is coming in and how much is going out. Take note of everything that you spend your money on and what brings in the most revenue. You can do this on a simple spreadsheet.

When you track your money you are able to budget better. Tracking your money also enables you to know how much you can keep aside as savings.

 

 

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Money Management Tip 2 – Have a savings fund

As a freelancer, there are days when business can get a little dry, especially if your freelance business is such that depends on the season. Having a savings fund is a great way to keep to money aside for those slow months.

If you’re tracking your money, you’ll be able to determine how much of the money you earn can go for savings. Make sure that you consistently keep that money aside for savings. The key to this is commitment. You need to be determined that you will save the same amount every month. Little-by-little you will see your savings grow.

 

Money Management Tip 3 – Keep and stick to a budget

You probably have heard a lot about budgeting. Budgeting is a great way to make optimum use of every penny you’ve got. When you budget you know exactly how best to spend your money. Without a budget you will find yourself spending money on things that are not necessary or on things you would end up not using.

Estimate how much you are willing to spend every month. Divide that by 4 weeks. This will give you an idea of how much you can spend for the week. Make sure that all your spending for the week is within the sum you budgeted.

 

Money Management Tip 4 – Send out invoices

I handle blogger outreach for a number of clients, and I find it funny when bloggers don’t send out invoices. You should always send out an invoice for every completed job. Invoices are the easiest way to track paid/unpaid work. Invoices also make it easier to monitor cashflow. I always advise bloggers to send out invoices as it makes the job easier for both of us. I also I send out invoices for every job I complete.

Invoices are super easy to generate on Paypal. You can also set up your invoice template on Microsoft Word or Excel.

 

Are you a freelancer or self-employed person? How do you manage your money? What do you think of these money management tips?

 

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Prince Charming Isn’t Coming

I have been reading a lot of personal finance and general business related books on my Kindle for the last month, and I have found majority of the books very informative. I am currently reading “Prince Charming Isn’t Coming: How Women Get Smart About Money” by the talented Barbara Stanny – popular motivational speaker, financial educator, former journalist, and career counsellor, and I am loving it!

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This is the second book of hers I  am reading this month. I just finished reading “Overcoming Underearning(TM): A Simple Guide to a Richer Life”, which was also an amazing read. I learnt so much from the book, and I am implementing her tips already. I can’t wait to finish this current book and find more of Barbara Stanny books to read. Her writing style is right up my street, so easy to read, she is the real deal!

As a self-employed business person, I enjoy reading finance and business related books in my leisure time to keep myself informed. You would easily catch me reading a book on my Kindle, while on a train, in a car, before I sleep, or whenever I get the chance. Reading and writing is like food and water to me. I can’t do without them.

Reading these finance books have made me pay more attention to the health of my finances, which is not where it should be, but it is a work in progress, and I am happy it is nowhere where it was some years ago. And I am sure that is the case for many of us.

The reality for many of us is leaving from pay check to pay check, a never ending credit card bill, various store card bills, and online loans. Now there is nothing wrong with any of these if you do have them, life is hard as it is already, so being judged is the last thing we need from anyone, especially strangers. But the one thing I have learnt from these finance books, is that as long as you are on top of our finances, you are a step ahead. I have learnt to stay up to date with every bill and bank statement, and I working towards increasing my income streams, and spending less.

Have you read any of Barbara Stanny books? Do you enjoy reading about finance and business?

Speaking of books, have you read my book – How to Cash In as a Blogger?

 

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If you have, please leave me a review on Amazon, if you haven’t read it, please do and leave me a review once you are done. Thanking you.

*Collaborative post.

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