At the very beginning of the freelance career orders may be few, sometimes they are not available for several months, and they are poorly paid. When I launched my project( when you can buy custom essay), it wasn’t easy and success didn’t come to me right away, but I had to regroup and self-organize to focus on my work. And especially it was about my income and expenses.
I have learned how to distribute my savings correctly, and now I am ready to share advice on how to do it in the best way.
Write out fixed costs
Create a table in Excel or start a separate notebook and create a list in it for a month, for which you need to pay: rent an apartment, food, transportation, subscriptions to programs. You can do it in the application on your phone, for example, Money Manager, CoinKeeper, Zen Mani. So you will understand what the minimum income you need. Also, it will help you to analyze what you can save on, for example, to use not a cab, but public transport.
The saved means can be postponed on cases when there will be no orders, or to invest in advertising. Keep an eye on your income and expenses every month, so you will learn to manage your finances.
Come up with additional sources of income
As long as you do not have a stable flow of orders, you can earn on other skills in the “low season”. For example, you are constantly engaged in illustration, but still know how to write texts and can earn on it. This will give you the confidence that you will be able to provide yourself in any case.
You will also soon understand what activities bring you the main income and you can concentrate on its development.
The ability to monetize completely different skills will help you not to remain without income in times of crisis in certain areas (for example, as tourism and event industry today).
Plan non-fixed costs in advance
Write on a separate sheet of your wishes (what you would like to buy in the near future), which are not mandatory costs. Keep in mind that it would be a priority for you, and then you will know what to spend your earnings from the order or previously deferred funds.
Separate personal and work finance
When you have already built your work on the freelance, there will be a need to pay salaries to employees, pay for services, taxes and so on. Create a separate card and account for such work expenses, and then you won’t feel like you’ve spent a lot of your own money, because you’ll know what went into work and what went into personal expenses.
For example, sometimes in some projects I pay for a photographer, makeup artist, studio rent. I immediately put these expenses into the cost of the project, and in my expenses they are accounted for separately.
Create an “airbag”.
Try to save 10% from each order or project to a separate account. This will be your intact stock. Working on the freelance is not always predictable, and this way you will feel comfortable even in periods when there will be an unstable situation with orders.