If you’re an independent worker, one of the things you have to get used to is managing your money. After all, as a freelancer, you don’t have an employer or a regular paycheck coming in. You have to make sure that each dollar works as hard as it can for you—whether that means putting it into savings or investing it.
But the truth is, we all need some help from time to time when it comes to managing our finances. Even if you’ve been doing it for years and years, there are always new things to learn about how money works and how we can save more of it for ourselves (and those rainy days).
That’s why we’re here! We’ve compiled this list of tips for freelancers who want extra guidance with their money management skills. These tips will help you take control over your finances, so they work better for YOU and YOUR goals.
Set Clear Goals for Yourself
If you want to ensure you can always pay your bills, set clear goals for yourself. The first step is understanding how much money you need monthly to cover your expenses. Once you know how much money you need, you can figure out how much you need to make each month to reach that goal.
Save Every Month
Once you’ve set a goal, it’s time to start saving monthly money to reach it. Spending every dollar in our bank account is easy, but setting aside some cash for savings is important if we want our business to succeed.
Think About How You Spend Your Money
The best way to save more money every month is by thinking about how we spend our monthly income and figuring out ways to cut back on unnecessary spending. Hence, more cash is available for saving or investing in our business.
Keep Track of Your Time
Track your time, so you know how much to charge clients. You can use online time-tracking tools like Toggl or Harvest to measure your time on various projects. But even if you don’t use any software, it’s important to keep track of the hours you work and the rates you charge clients — even if it’s only in your head.
Back-Up Your Data
You can’t afford to lose any data — it’s that simple. Backing up your files is essential, but it’s a task that many people put off. If you’re not already doing so, set aside time each week to back up your laptop and desktop computers and external drives or flash drives. You may also consider backing up your data online using an online back-up service such as Acronis True Image Cloud.
Build An Emergency Fund
As an independent worker, you are your boss. You have to ensure you are financially responsible for all your expenses and obligations. This means having a plan in place for emergencies that may arise, such as medical bills or car repairs. If something unexpected happens, it’s important to have some money saved up so that it doesn’t strain your finances or lead to late payments on any bills (which can cause even more problems)!
Track Your Spending
You need to know how much money you’re making and spending to manage your business finances effectively. This will help you create a budget that works for your business and allows you to save money for the future.
Conclusion
Even if you don’t need these tips now, knowing how to handle your money better is good. You never know when you’ll unexpectedly lose a client, be hit with some unexpected charge, or have expenses you didn’t plan on. These tips will be very useful if you find yourself in that position.
