A Guide To The Finances of Freelancing
There are many perks to being a freelance worker including being your own boss, working from wherever you like and a flexible schedule, but it is not a line of work for everyone, and it certainly has its own unique challenges. It can be difficult financially at times and particularly when first starting out because the work may fluctuate heavily week to week and there may be long periods where the work dries up which can make it stressful and hard to get by. Read on for a few financial tips that any freelancer can use to improve their financial situation and find stability.
If you only have one client, then you will be relying heavily on them for a constant stream of work, and this is unrealistic. Instead, it is best to have a couple of clients and to balance the workload so that if there is not much coming from one source you always have someone else you can work for. It is, of course, key that you manage your time effectively with this approach and never let working for different clients impact the quality of your work.
Rainy Day Fund
It is a horrible feeling when the work begins to dry up which is why it is crucial that you have a rainy day fund and track your finances. Set aside some money each month so that you can continue to maintain your lifestyle if there are periods where there is little or no work to do – this will help you to ride out the dry patch or find new work without it impacting your finances.
Many freelance workers find it beneficial to have a side job so that they have some stable income. In addition to this, some freelance work can be isolating so having a job that gets you out can be beneficial for socializing too.
Another way to generate more money each month is to invest with real estate being a good option. Crowdfunding platforms can make it easy to invest in high-value properties that would be hard to invest in otherwise which is a great way to enter the market. There are a few different options, but Fundrise Google reviews are all excellent.
Although it is a good idea to have set hours for freelance working, you may find it beneficial to take on additional hours or to work the occasional weekend to boost your earnings. Just make sure that you do not work too much as this can lead to burnout – much like anyone, you will need to take regular breaks and disconnect.
Every freelance worker will have had some kind of financial concern at one point as this is the nature of the work. Fortunately, it is easy to learn how to be intelligent with your work and money so that you can find some stability even during periods where there is not much work to complete. Using a combination of the above could help any individual to give their earnings a significant boost and provide peace of mind.