5 Surefire Tips for Being Finance-Savvy with Your Freelance Money
The novel coronavirus of 2019 brought on numerous challenges for all of us. However, there was one silver lining in the dark clouds of the pandemic: more remote work opportunities became available.
According to online staffing platform Freelancer.com, they experienced a job growth of 17% in 2020, garnering a total of 2.1 million jobs as compared to 1.8 million in the previous year. Company executives are confident they will continue to flourish, citing that jobs in app and web development are among the most popular.
Freelancing gigs offer a slew of advantages that a traditional “9-to-5” job can’t provide. For one, freelancing allows you to work on your own time to meet your deadlines without your bosses breathing down your neck and checking up on you every hour. What’s more, freelancing rids you of the aggravations of commuting during rush hours and enduring traffic.
However, there’s a downside to being a freelancer, especially when you’re not equipped with finance-savviness. Since the earnings do not come regularly every two weeks like with regular jobs, you may find yourself in a financial quandary sometimes, with no options left but to play the waiting game. But fret not, there are solutions to budgeting your freelance earnings like a pro. Take a look below:
Keep a record of your earnings and spending.
This can’t be emphasized enough: You cannot approach your finances like you’re blindfolded. The best way to do that? Keep track of your money, from what goes in and what goes out. Hold on to those receipts if you must. You can use an old-fashioned ledger or an Excel spreadsheet, but if you’re tech-savvy, then apps like Mint or Goodbudget are ideal for you.
Always prioritize the necessities.
Is a new set of headphones as important as paying off student loans? Of course not. Whether you’re working with freelance earnings or regular earnings, it’s important to always set aside finances for the necessities like your utility bills, student loans, and credit card debt. It’s always good to have these priorities paid off so you can enjoy the rest of your money without guilt.
Stick to a weekly budget.
True, your current freelancing gigs can be double or even triple than what you used to make with regular jobs in the retail or food services industries. But this doesn’t mean you can freely spend every cent that lands on your lap! Give yourself a weekly budget and make sure to stick to it. Not only will this help during those times when gigs run out, it only helps you become more disciplined and wiser on what you spend your money on.
Set financial goals.
Just because you’re a freelancer doesn’t mean that you should do away with financial goals like you would if you have a regular job. If you’re saving up for a car, for example, then set your mind to this and come up with a doable savings plan. Doing so will make you more motivated and smarter with your financial choices.
Plan your vacation accordingly.
You may not have vacation pay, but this doesn’t mean you can’t go on a vacation! However, keep in mind that the time you take for a break means putting your income on pause, so be sure to have enough money to cover the costs while you’re away. This way, you don’t feel overwhelmed taking on more projects than you can handle because you’re trying to catch up on your due payments.
Being a freelancer is a dream job for a lot of people because of the flexibility that it allows. However, if you do decide to take this route, make sure that you’re prepared to make an effort to make your finances work.