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MANAGING YOUR MONEY AS A FREELANCER
Freelancers should be proud, you are a small business owner who is making your own money in your own way. It takes a lot of courage, determination, and countless hours of time. Whether you are hard at managing your influencer Instagram posts, managing a blog, or creating content for clients, you are running a business that deserves to be taken seriously.
Whatever you do as a freelancer, and whatever services you provide, you will need to manage your money in order to grow and be secure.
Have a look at the following tips that will help you to manage your money as a freelancer:
Keep Your Personal Bank Account Separate
You may think that because you are the only person bringing in the income from your business, you don’t have a need for a business bank account, however, it is important for you to keep your personal bank separate.
It will make bookkeeping easier especially when it comes to taxes. It will also come in handy if you need to research things such as Improved Data services reviews before claiming unpaid invoices etc. It’s best to have a second account for business and then pay yourself a wage.
Have A Business Budget
The word budget shouldn’t scare you, in fact, you should enjoy the fact that you are running your business smart by having one in place. A budget is there to help you plan out your monthly business income and expenditure before the month starts. You will be sure to keep expenses low by using a zero budget where you plan the money you expect to receive before you get it.
Make sure you don’t count anything that you can’t guarantee will arrive otherwise you could end up overspending and reaching. If you know you are going to get more money than you need for the month, use it as a contingency fund for your business.
Check Your Finances Each Week
Your budget will be useless if you don’t use it properly. You should check on your budget every week to make sure it is working for you and you are on track. If you have been a freelancer for a while you will already know that your clients don’t always pay on time.
You should look out for:
Do you have any business subscriptions to pay for?
How many invoices are due to be paid to you this week?
Do you need to make any adjustments?
How much does it look like you will earn this month?
Can you set any money aside for savings?
Do you need to pay yourself a wage this week to cover personal living expenses?
Do you need to reschedule regular work so your income is more even throughout the month?
These three tips should help you to manage your money as a freelancer well. Remember you are in control, and as long as you put the steps in place you should be able to keep your finances under control. Do you have any other tips that could help? Please share them below.
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