A freelancer will generally spend the day in front of a computer or laptop, although I don't know for sure how many hours they spend each day in front of the computer. But freelancers can work anytime and anywhere. But unfortunately many people think, especially family (parents), that a freelancer's income is uncertain and there is no financial guarantee in the future. If you are a freelancer, how do you manage your finances?
How to Manage Freelancer Finances?
- Thread starter Suba
- Start date
Actually, it takes time for a freelancer to be making money consistently. But once a freelancer have established a name for himself and have some consistent customers, he will be making enough money more than most offline business owners.
There are always pros and cons of working as a freelancer online. However, if he or she is flexible and equip with soft skills, he or she can earn more than the usual jobs offline. I include myself for working online for more than 8 years now.
That is what most people think about freelancing job but the uncertainty of income can be reduced when one is able to work on multiple GIGs, when it comes to finance management as a freelancer one need to under spend(spend within or below the budget) and increase savings or better still increase investments
You have to use your funds to run jobs and hire freelancers and make projects that could have financial impact like create e commerce site and resell them.
It is better to have plans on how you spend your money for the future . Investing on a reasonable project could be the best option.
I think the best thing to do as a freelancer is to diversify your sources of income. There are passive income sources like investing in stocks and even cryptocurrency that don't need as much attention. You can also pick up a new skill online to work on when you have no gigs on the others.
I have been working as a freelancer for eight years. At the beginning, my income was not very stable. But when I built up my reputation, I get jobs much more easily. Now, I have a loyal and stable customer base. My income, though not exactly the same amount every month, is relatively stable.
One can manage freelancer finances by;
- separating ones business accounts from one's personal account
- recording every business related expenses
- monitoring income and expenses regularly
- creating a budget and sticking to it.
- separating ones business accounts from one's personal account
- recording every business related expenses
- monitoring income and expenses regularly
- creating a budget and sticking to it.
