PLANS & PRICING
With the up and coming gig economy system, freelancing has become extremely popular. Working for yourself can seem attractive until you realise you haven’t gotten a handle on your finances. Here’s how to manage your finances as a freelancer:
Track your Expenses: Religiously track your expenses and income. This is the first step to budgeting and doing it regularly will make sure you have money on a rainy day. There are tons of budgeting and money tracking apps available out there. You may even prefer to go old school and manage a spreadsheet or an accounts book. Choose your method, but make sure to stay consistent.
Keep your business and personal accounts separate: When you are working for yourself, it’s easy to lose track of what is a business expense and what is a personal expense. Keep your business account separate and pay yourself a ‘salary’ from there.
Watch out for Taxes: Read up about the tax laws in your country/state and be aware of how and when to pay.
Establish a Rainy Day Fund: This links back to our first point, but make sure that you have some savings for periods when your clients haven’t paid or you are not working. Educate yourself about which insurance payments you need to make and what all your insurance will cover.
Give your clients their money’s worth: It may be tempting to put in extra hard work, resources and time into interesting projects but make sure you can afford to. Don’t do favours you can’t afford and make sure you are running your business efficiently and profitably