How to Save Money as a Freelancer
In my last post, I went into how important it is to save some of the income you make in order to set your business up for longevity.
However, freelancers have a hard time saving money because how do you save when you are not earning what you want?
Let’s break down a real-life example of a freelancerI know. Don’t let your eyes get blurred over!
Suppose you make $5500 in one month.
Your business expenses are about $150.
If we look at taxes that we need to put away at 30%, then that's an additional $1605 taken away from you.
You are left with $3745. How much of that is needed for utilities, rent/mortgage, kids stuff, etc?
Let's put that at $3300. (trying to guesstimate on the high end)
That means you are left with $445 of additional income.
If it was me, I would put $200 away into my business. Even that small amount can make a large difference if saved up over time. The more income I make, the more I would save.
When you constantly put away money, you are getting yourself out of feast or famine mode. Your mindset shifts to something of a more relaxed state. You are now in control of your future, not your clients.
Take control now, and save what you can. If you're like me, and have the advantage of a spouse's income or are still working full-time, save as much as you can while still supporting your financial health as a family unit.
Was this confusing? Or not clear enough? If you haven’t downloaded my Money Mapper, it’s time to do so in order to accurately figure out how much to save of your income.
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I’m looking to help you increase your income as a freelancer. As a freelance coach, my programs have helped my students increase their income and give them more time back in their life. Would love to chat with you; contact me here.
