6 Budgeting Tips for Freelancers
Budgeting your finances as a freelancer is essential to your survival. Every independent worker longs for absolute and lasting success, but until you achieve it, there are plenty of ways to make a stable living – but only if you manage your finances properly.
Devote the appropriate amount of time and attention to your money management and you can take a lot of the stress out of the equation. The last thing you want is to have to return to the corporate world, especially in light of today’s hiring landscape.
To learn how to stay put and thrive as a freelancer, read on.
1. Halt personal spending
This may sound like a harsh measure, but it’s only necessary until you gain control over your finances. Just tell yourself you’re not going to spend any money beyond the necessities, like gas and groceries, for one week. See how much you saved during that time and determine if you truly missed out on anything. This strategy can serve you well going forward, when you need a fairly quick influx of cash.
2. Get on a budget
Once all this slicing and dicing is done, get yourself on a budget. Write down the new amounts for your bills on one side of a piece of paper. Then, write out your estimated income on the other. To arrive at this number, average out your past 12 months of earnings or, to be more conservative, take the worst month you had in the recent past. Hopefully, in light of all your cost-saving measures, your spending is below your income. If not, you’ve got a bit more work to do.
3. Market yourself
A great way to make budgeting easier is to boost your income. Are you marketing yourself and your talents to the best of your abilities? When was the last time you tried out a new social media platform? Bringing in more income makes managing your finances a whole lot easier.
4. Slash your monthly bills
Next, take a look at your monthly bills. Cut back on your channel package to save on cable TV. Review your smartphone data usage, judge it against your plan, and pare it back as necessary.
Investigate the competition for all monthly services like internet, phone and cable, and see if bundling is an option. Cut down on your showers, do all lawn watering late at night, and commit to running full loads of dishes and clothes to reduce your water bill.
5. Commit to paying off credit card debt
If you have a surplus in your budget but are still carrying credit card balances, get those squared away first. Once they’re in your rear view mirror, you’re going to be stunned by how much more you have left in your bank account each month. Credit card debts can suck the life right out of a budget – get rid of yours quickly.
6. Find quick ways to save money
To top it all off, look for some quick ways to save money. Skip those trips to the convenience store for sweets, newspapers and lottery tickets. Walk through your house and unplug everything that rarely gets used to lower your electricity bill, even if those items aren’t turned on.
SOURCE: Freelancers Union
