Starting out your freelance career is wildly liberating and exciting. However, compared to your full-time corporate job where your salary was paid into your account at the same time every single month, you now have to become your own accountant. Money management as a freelancer is something you will learn to refine as you go, but here are a few tips to get you started.
Create an Invoicing System
Unless your business grows to the point where you can hire a freelance bookkeeper, all things personal finance management is up to you. However, there are some powerful and useful tools that you can use to help you streamline your flow of income. Consider online tools like Zoho or Bill.com that you can use to keep track of your payments as well as automate your invoices to your clients.
Keep Track of Your Expenses
Having an income that’s constantly growing each month is great, but part of your money management is considering your other additional living expenses. If you have insurance, a cell phone contract, or rent to pay, you need to keep track of additional expenses in comparison to your monthly income. Weighing up the two will measure your growth as a freelancer and help you decide when you can splash out on personal treats or additional investments in your career.
Consult Someone Experienced
Because managing your income is now all in your hands — something you never had to do before — it’s worth chatting to someone who has been managing their own finances for a while. Even if it’s just your parents, additional insight is incredibly helpful in ensuring you don’t make mistakes with your money or end up scraping the bottom of the barrel for several months because you didn’t plan well enough.
Set a Budget
Budgeting in personal finance management and many other aspects of life is incredibly important. You need to be able to see where your money is going so you can plan what you can and cannot do with your business. Set goals for yourself, like saving up for a paid course to further your knowledge, or investing in a computer monitor. You’ll then have a better idea of how much more you need to earn or what you need to cut down on.
Money management as a freelancer is no easy feat, but you’ll eventually get into a flow that keeps you stable and secure. If you’re looking for extra freelance jobs, consider signing up to our platform to get high-quality jobs!