If you’re a freelancer–whether you’re an architect, a consultant, a musician, a writer, a beautician, you name it–taking charge of your finances will help you succeed at your business immeasurably.
Over at 99designs, Tory Van Wey has five personal finance tips every freelancer should know. Here are Van Wey’s tips:
Don’t Go Into Denial
A lot of people, especially in the creative fields, don’t like to think about finance and money matters. Many freelancers also think there’s a stigma to talking about personal finance, or talking about poor money decisions they made over the years. However, doing what you love for a living–instead of having a day job you’re not enthusiastic about–requires business savvy. And figuring out your personal finances.
Plan For Freelancing’s High Points And Low Points
Freelancing has great months and bad months. Save money during the great months to keep you going during the bad months.
Budget For Taxes As A Freelancer
If you’re a freelancer in the United States, quarterly taxes are going to come up. You want to deposit 20% of each paycheck you get into a separate savings account, keep that for taxes, and make sure you don’t end up eating pasta and brand X tomato sauce every time quarterly payments come around.
Keep Track Of Expenses As A Freelancer
Expense accounts from clients and tax deductions are your friends. Use an app like Mint to track expenses, and also keep your receipts in envelopes for when tax time comes around.
Be Your Own Boss & Practice Self-Care
If you’re self-employed, you don’t have a supervisor or manager who’s (supposed to, at least!) mentor and take care of you. If you’re stressed out or distracted by money troubles, you’re not going to be working at 100% strength. Take care of yourself and prevent problems from occurring ahead of time.
What else would you add to this list?