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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.

 

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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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Self Employment on a Budget

I have been self-employed for a few years now and although I love it, it does come with its challenges. On some month, I am super busy and my bank account is smiling. And some other months, it can be super quiet. One minute I could be wondering how to pay some bills, and the next minute I could be laughing all the way to the bank. That is pretty much the life of a freelancer/self-employed person. Our income fluctuates and there is so much financial uncertainty but I won’t trade it for a job in an office with a regular pay check. The pros of being a self-employed person massively outweighs the cons for me, which is why I do what I do.

 

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

 

 

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

Having said that, the key to surviving the self employment world is to have a budget. I love reading finance self-help book on my Amazon Kindle. The book I am currently reading is You Need a Budget: The Proven System for Breaking the Paycheck-to-Paycheck Cycle, Getting Out of Debt, and Living the Life You Want by Jesse Mecham. It is the first book I am reading this year and I am loving the budgeting tips and advice. I have picked a lot from this book and I recommend it to anyone struggling to make the most of their money. You need to read this book. It is full of wisdom and valuable tips. 

Everyone needs a budget regardless of what you do for money. Business owners and freelancers need a budget more than everyone else because of the income fluctuations. Having a budget helps you plan your money and make your money work for you. If you budget right, you can survive on periods where work is quiet because you would have saved money from the busy months. 

 

Self Employment on a Budget

I am going to be handling my money a little differently this 2019. Generally, I am good with money but there is always room for improvements, and I plan to be better this 2019. Here are some things I would be doing more of –

 

Ageing my money

Jesse Mecham advises us to age our money. What this means is for us not to spend all of our money as soon as it comes in. This makes a whole lot of sense. Ageing your money allows you think smartly and set your priorities straight. It takes off the stress of having no money in your bank account and it allows you plan your life.  Ageing your money allows your money wait on you instead of you waiting on your money. It sounds pointless but it works. Trust me, I have tried it. The longer you can age your money, the better. I aim to age my money for at least 30 days. It is a work in progress but I am slowly getting there.

 

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Spend less than what you earn

This should be common sense but it is amazing how we spend way more than what we earn. Which leads to us having to use our overdraft facility, store cards and credit cards to make up for the difference. Spending less than what we earn is the way to financial freedom.

 

Grow the savings

Having money saved away is the way to survive self employment. With the income uncertainty, you never know for sure when you would be short, so it makes sense to always have money stashed away for when the need arises. Growing the savings is one of my many goals this 2019.

 

Make more money

2019 is the year of making more money. That is another goal I plan to seriously work on this year. The way to financial freedom is to have many streams of income. I am planning on working hard on making money via affiliates and I am using an affiliate link in this post for the first time in a long time. Having many streams of income means you have various ways of making money. No one should ever rely on 1 pay check.

 

Do you have a budget?

 

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