Freelancing often sounds like another word for professional freedom. Indeed, when you become your own boss, you can choose your clients, your projects and your working hours. At least, that’s what it feels like on paper. In reality, the freelancing lifestyle is not as liberating as it might sound. With no guarantee of regular workload or income, you need to find creative ways to nudge potential clients. More importantly, your finances are constantly under threat, especially if you don’t manage a tight budget. To put it simply, freelancers need to become ninjas of organisations if they ever want to achieve financial stability. It’s not only about managing what comes in and what goes out of your monthly budget. This kind of behaviour only works with employed individuals who can rely on a regular income. As a freelancer, you need to deploy the best-suited tools to build stability in your career and finances.
Gain control of what comes in and out
If you’ve enjoyed a life of easy decisions and shopping until now, it’s time to learn some essential financial responsibility lessons. Freelancers can’t afford to ignore their financial status. Instead, they need to make lifestyle adjustments when they quit the 9-to-5 office life. Fashion items, luxury gadgets and travel expenses need to be rethought thoroughly, as you need to plan for financial drought, aka the days when you can’t find a client. Using a budget app can be a smart way of managing your income and saving money to survive low work periods. Toggl is a great little app for time budget, and it comes entirely for free. Freshbook is also free and lets you keep track of the payments you receive and the ones you need to make. It also enables you to send invoices that can be paid directly by credit cards, which makes it easier for your clients to honour their debts.
Understand how to pay off business expenses
You have an advantage as a freelancer: you can deduct some of your costs from your income tax. For instance, you can keep track of your automobile purchase with this used auto loan calculator to deduct your monthly payments, assuming you use the car in your professional activities. Ultimately, being in a position where you can leverage your expenses as a tax deduction can give you the possibility to establish your freelancing business with the necessary gear for your day-to-day work. However, it’s fair to say that, as a freelancer, you can use online calculators to track your personal loans, but you can’t apply for a commercial loan. Commercial loans are for companies.
Make yourself visible to potential clients
You can stay idle and wait for clients to find you. You need to make yourself visible to your audience, using smart tools that are available online. LinkedIn ProFinder lets you register as a professional freelancer and showcase your expertise. It also keeps you informed when you’ve got a lead that meets your criteria. Upwork is typically a platform of low bids, but with a strategic approach, you can find clients that match your budget.
In conclusion, your freelancing stability relies on using the right tools to ensure you can control your finances, from managing expenses to attract new clients without spending a cent. Ultimately, for freelancers, financial freedom is about control and discipline.
MR LEE FRASER