Freelancing is a very rewarding and flexible career. It can be said that freelancers are the masters of their time and the captain of their successes. However, freelancing isn’t entirely a bed of roses.
Freelancers especially those who are starting out often struggle financially. Needless to say, freelancing is survival of the fittest. Whether you’re a freelance writer, web consultant, advertising agent or IT specialists, you’re in for a huge financial challenge.
Hence, the following are several money saving tips for freelancers.
Tip 1: Look at where you stand – estimate your monthly freelancing income and expenses.
Freelancers earn a very unpredictable income. It all depends on their hard work and the opportunities that sometimes come straight at them. In order to have a healthy financial standing, freelancers should first look at where they currently stand financially.
They should estimate their expected monthly cash flows. Similarly, freelancers should establish a well-organized checks and balances system that details their income sources and expense items.
Tip 2: Prepare for the worst-case scenario – diversify your portfolio, start your own websites, save a portion of your monthly freelancing income.
Freelance writers are extremely vulnerable to financial windfalls caused by changes in their freelance working environment. Such changes are inevitable. However, freelancers can prepare for such financial windfalls by diversifying their portfolio and preparing an emergency fund.
Saving a significant portion, at least 10% of freelancing income is a good start for freelancers.
Tip 3: When buying merchandise, think in terms of how you can pay for it through your freelance income rather than the price alone.
Aaron Patzer, one of the founders of Mint.com, in an interview with adventurouswriter.com advises freelance writers to look in terms of words/articles sold rather than the price tag of the merchandise.
Tip 4: Use eco-friendly, energy-saving gadgets – they’re not just better but also consume lower amounts of electricity.
Another great way for freelancers to save money is by using eco-friendly gadgets rather than old, traditional bulky ones. The cost of replacing old gadgets with eco-friendly ones will pay itself in the long-term, in terms of savings on electricity bills.
Tip 5: Live below your means – spend less than what you earn.
Living below your means is a practical way to save money. Keeping up with the Joneses will only result to a massive financial collapse. Spending less than what you earn is a good financial practice not just for freelancers but to all people in general.