At the regular grind, there are…
- Long commuting hours
- toxic workplaces
- lack of work-life balance
All of these things have made many workers quit their 9 to 5 jobs in favor of more flexible work options that can be managed in the comfort of their own home.
Freelancing offers a lot of freedom, which is what makes it so attractive to many people who are burned out from the traditional office setup. Freelancers have the ability to choose which projects they would like to work on when they would like to work on it. They even choose the pricing of offering their services to potential clients.
While freelancing certainly does have its perks, it also has its drawbacks. One of the common challenges freelancers often face is getting a steady stream of income. Since freelance work is often project-based, it definitely forces them to be good at managing their money.
See below for how you can achieve financial freedom by organizing your finances as a freelancer.
Achieving Financial Freedom as a Freelancer by Organizing Your Finances
For those looking to achieve financial freedom, freelancing may be a good way to achieve that. Well, assuming that they are able to organize their finances. Below are some ways that you can manage your money as a freelancer.
Don’t mix your personal and business finances.
If you’re new to freelancing, one thing that you want to avoid doing is putting your personal and business finances in one account. This can make it difficult to fill out your tax return forms since you won’t be able to tell which of your expenses were personal and which were for your business.
Keep records of your business finances.
Being a freelancer means you are your own employer. You are also your own finance department. Keeping a detailed record of your business finances will help you keep track of how much money you are earning from your freelancing projects.
If you need to have proof of income, you may need to create pay stubs as proof of earnings. This can be easily achieved through websites like paystubs365.com.
Create and stick to a budget.
Due to the inconsistent flow of income that being a freelancer comes with, you need to make sure that you have a monthly budget and stick to it. It can be challenging to make a monthly budget for freelancers that works for all months, so you’ll need to learn how to budget for irregular income. One good tip is to look at your average monthly spending and your average monthly income, then create a budget around that.
Hope for the best, prepare for the worst.
Achieving financial freedom as a freelancer is very much like owning and running a business–there will be days where your income spikes. However, there will also be instances where your income will look a little lean.
Of course, you will need to prepare for those bad days. Setting aside some money in an emergency fund and planning for your retirement are things that you will also need to do.
Achieving Financial Freedom – Are You Ready?
Being in control of your finances when you do freelance work might be challenging. However, as long as you stay confident in your abilities, it is very achievable. So if you’re thinking of becoming a freelancer and are really ready to make the jump, go for it! Just make sure you are financially prepared to do so.
Are you ready to start achieving financial freedom as a freelancer? Have you already started and want to tell us your experience?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.