manage my income as a freelancer

How I Manage My Income as a Freelancer

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Freelancing offers a lot of freedom. Since one can flexibly move from one job to another and also you are your own boss. Despite, that I really have to manage my income as a freelancer. I can tell you for free this is not a simple task. It needs a lot of sacrifice and determination in order to get it right.

On my part as a freelancer, I have encountered some problems when it comes to handling my finances. However, I came up with some means on how to manage my finances and they have been so rewarding. Below are some of the things I put into consideration dearly when I manage my income as a freelancer.

Taking note of my average monthly income

First of all, I had to estimate the amount of income that I get averagely in a month. This helped me when it comes to making a financial decision. By knowing what I averagely earn, I can know which amount to save and the one to spend and for sure this saved me a lot. Since with proper planning, I was able to avoid spending money anyhow. Unfortunately, freelancing is so unpredictable but by incorporating this method I could sail through any financial instability.

Manage my Income as a Freelancer with budget Making

manage my income as a freelancer

This is a very crucial decision that everyone has to undertake. I personally make a budget which has to guide me after getting my income. A budget assists me in proper allocation of funds to every sector of my life. Besides, accountability is brought forth that is, I can account for every cent that I spent. In addition, making a budget also shows how responsible I am and this can be emulated in every bit of my life. So as a freelancer I am subject to making financial mistakes. However, having a budget acts as a reliable way to manage my income as a freelancer.

Cater for Business Expenses first

After receiving my income, I do not rush towards rewarding or paying myself first. I always keep in mind of the important business expenses that I have to pay off. This is a very vital step in managing your finances. It is so significant that any avoidance might lead to you wallowing in debts. So what are my business expenses which I term as essential? They include, taxes, retirement funds, insurance. These expenses once cleared I can now go ahead to paying myself. So just like me, after getting your income prioritize your business expenses before paying yourself.

Having and updating Financial books

Personally, I have financial books which I keep. Whenever I get paid, I record that into my financial books and besides any transactions I get involved in I record too. With efficient book keeping, I am able to track my income and account to how I spent. At the end of every month, I sit down to analyze and balance my financial books. This process gives me a comprehensive report on how my income came in and how I spent it. From it I also making decisions on what to correct next time and thus keeping me in control of my income.

Prioritizes

As a freelancer I have prioritizes. I have a clear picture of what I want to achieve in my life. This has to be emulated in how I handle my income so that I be able to achieve my set targets. So whenever I receive my income, I first deal with prioritizes. Fortunately, it has paid off since I have prevented myself from lavish spending which just drains my cash at a higher rate. In fact I have captivated that art of sitting down, deciding on satisfying the important expenses, this include house rent, taxes, insurance charges. By this, I have been able to avoid debts and cases of bankruptcy. So as a freelancer you really have to set prioritizes right in order to avoid going into a financial crisis.

Conclusion

It is evident that dealing with income is no easier task and a lot of attention has to be paid to it in order to lead a smooth life. This is because when you really do not do that you are likely to be in for a financial crisis.

Hopefully, just like me you can come up with a proper management of income. I have demystified some of the essential points that you need to consider. These have helped me to manage my income as a freelancer. I am sure that when you put that into consideration, you will reap tremendous results. Despite the fact that it might not be a walk in the park, it is really doable.

 

Maryam Nasrullah

Maryam Nasrullah

Maryam Nasrullah is an author, Ghostwriter and Contributor. She currently works with tons of articles and content writing projects. Writing is her passion, and she enjoys sharing her thoughts with the world. She writes professionally for marketing campaigns, Content writing companies, and SEO based services.
Maryam loves challenges of creating quality contents for clients and readers as she thinks that it is a privilege to be able to do something you enjoy doing.
Maryam Nasrallah is many things. She thinks that learning and growing are what we call life. She will always try to achieve best for her clients and readers. She enjoys meeting with intellectual people
Maryam Nasrullah

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Posted by Maryam Nasrullah

Maryam Nasrullah is an author, Ghostwriter and Contributor. She currently works with tons of articles and content writing projects. Writing is her passion, and she enjoys sharing her thoughts with the world. She writes professionally for marketing campaigns, Content writing companies, and SEO based services. Maryam loves challenges of creating quality contents for clients and readers as she thinks that it is a privilege to be able to do something you enjoy doing. Maryam Nasrallah is many things. She thinks that learning and growing are what we call life. She will always try to achieve best for her clients and readers. She enjoys meeting with intellectual people

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