Money Management Tips For Freelancers
/Working as a freelancer is liberating in so many ways, however managing the ups and downs of finances can be stressful at times. The first step is to a solid financial foundation for yourself and remembering that as a freelancer you are completely responsible for the finances in your business. This means structuring your contracts in a way that best support your cash flow and maintaining an effective sales process for when the contract inevitably expires. It’s common for freelancers to acquire contract and then feel like they are back on easy street. But as soon as that contract has finished, it’s back to the hustle and grind. You can avoid the feast and famine lifestyle by practicing some healthy money habits such as saving and elevating your money mindset from scarcity to abundance. So what are the best ways for us to save money as freelancers, especially when our income can fluctuate from month to month? Here are some ideas.
Me on set with three other models. We’re all freelancers and did a commercial video shoot for one of Snoop Dogg’s brands.
Play The Long Game Of Investment
The first step is to start thinking like an investor and look at the long-term. If you start early enough it's possible for you to save up enough money to put towards a decent retirement portfolio. There are so many Forex trading platforms and other investing platforms available to help you get started. The most important thing to remember with investment is that it is a long game. It's not about going in and trying to get as much money as possible right away. Those that have made a success of investment have stuck with it for decades.
Sort Out Your Tax Situation
If you have concerns with your finances you may want to look at the areas of your tax return. For example, there are so many different tax-deductible items you might not have known you could claim. Part of being self-employed is understanding how you can save on your taxes because if you do a tax return and do not itemize your expenses, your tax bill is going to be extraordinarily high! Make sure you claim everything you can.
Adjust Your Budget
Your budgets will always change depending on how much money you are earning. But if you continue to live the same sort of lifestyle despite your earnings fluctuating, this is going to cause challenges down the line. We recommend having a weekly money date and adjusting your expenses as your monthly income shifts. Cutting back may not sound fun, but having a money date will make the experience more enjoyable as you review your finances.
Spend Mindfully
We are all about becoming rich without living frugally and the way to do this is by being mindful about your spending. Many people think about becoming more minimalist not just to save money but to be happier.
Learning to save money as a freelancer isn't just about tackling your budget but it's about elevating your mindset towards money too. Being a freelancer does not have to mean living a feast or famine lifestyle. You can maintain a rich lifestyle with a few simple adjustments to your approach with money.
About Money & Mimosas: Money & Mimosas was started as a passion project by Danetha. A former NFL cheerleader turned entrepreneur, she started blogging as a way to combine all of her passions into a career. Money & Mimosas is now enjoyed by readers in over fifty countries with the same dream of achieving financial freedom without living frugally.
