Being a freelance writer, or in fact any kind of freelancer, can be a rather harrowing experience from time to time, depending on the consistency and regularity of your work flow and the timing of your payments for completed projects.
Working for multiple clients might be great one month, but a few weeks later one or two of them may decide to call it a day, leaving you frantically trying to find work.
Money management as a freelancer is very different to working for an employer and being able to rely on a monthly paycheck, so here are some useful money management tips to help you more easily and effectively manage your finances:
- Live Within Your Means – This one is so obvious it should hardly warrant mentioning; however, this point should stand front and centre because it will greatly determine your long-term financial success as a freelance writer.
Evaluate your expenses, things such as your cell phone plan, gym and club memberships, internet plan, the vehicle you drive, and ask yourself “Do I really need or use this?”
Time is money and if you can live somewhat more frugally, you will know that you are working for the things you need with far less wastage.
- Assess Your Costs – Part of living within your means involves figuring out exactly how much you’re spending and what you’re spending it on. Depending on how frequently you receive payments from clients, this evaluation could be done weekly, fortnightly, or monthly.
Make a list of all of your expenses so you know exactly how much you need to
earn to break even, as well as how much disposable income you’ll have left
- Streamline Your Outgoings – The last thing you want is for your cell phone or electricity provider to take a payment a couple of days before your primary client pays you for the previous week’s work, only to find that the money simply isn’t there.If you have payments leaving your bank account throughout the month, be sure to align them so that they coincide nicely with when payments from clients hit your account.
- Use Coupon and Rebate Sites – There are countless websites such as CurrentCodes set up with mailing lists that will provide you with frequent discounts and special offers to a variety of online retailers.
Other sites such as Ebate will provide you with cash rebates on your purchases, and be sure to also checkout the exclusive discounts that can be found through retailers’ official Facebook and Twitter pages.
If you don’t already have a pool of money set aside for big purchases or emergencies, you really ought to start as soon as possible. The benefit of saving is two-fold: You will have the confidence of knowing that you’re covered if the car needs to be repaired or you have to pay a hefty dentist bill, and you will also be able to keep your standards high when it comes to the work and pay terms you accept.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.