What is great about freelancing is that you are your own boss and you can work on your own time. But freelancing is not always rainbows and butterflies. If there is one thing that can be difficult for a freelancer—especially a new one—it will be the management of finances.
Let’s face it: while the monetary benefits of freelancing may be great at most, the irregularity of it is a challenge. One day your pockets are full, the next you are financially drained. This scenario does not have to be the case.
With irregular income, you need to think about creating your emergency fund—something you can rely on in times of need. The great thing about having an emergency fund is you will not be too pressured in taking so many clients out of fear that you will lose your income if you don’t keep them coming. It is advised that your emergency fund is always enough to cover at least six months of bills. This may sound daunting especially since your income is on the irregular side. However, you can manage this by following some of these tips:
Save whenever you can. Aim to put aside a certain amount every month and aside from that save any amount that you can spare as well. This may be difficult at first but if you keep at it long enough, it will become a very useful habit for your goal of having an emergency fund.
Cut your expenses. When you stumble upon a project with great pay, it is easy for you to get carried away in splurging on certain things. All that money will go down the drain and you are left with nothing till the next project comes along. While it is true that treating yourself once in a while is certainly not a bad thing, you must always make sure not to go overboard. Being able to differentiate between your wants and needs will really make a difference in your budgeting.
Look for other avenues of earning money. You are a freelancer thus your chances for work are endless! Do not be afraid of looking for other platforms in increasing your resources. Browse through websites and by all means advertise wherever you can. Who knows, the next job you might get will give you a bigger income than the one you are concentrating on right now.
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