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A Guide to Managing Your Money As A Freelancer

Being a freelancer is pretty cool- you get to manage your time, money and schedule. The ability to work from home and manage yourself without supervision is pretty great.

However, the freedom and autonomy that comes with a freelancing career could affect your finances if you don’t practice proper money management habits. Also, unlike employment, the freelancing does not come with a structured payment method or the certainty of the next income, so it’s quite easy to ignore proper financial habits.

Here are some tips to help you manage your money better, as a freelancer:

Separate and Repurpose your Bank Accounts

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You need to realize that freelancing is your business. Being your own boss and having control of the cash flow could lead you to consolidate your personal and work finances, which could lead to a mix-up and encourage overspending. Put yourself on a monthly salary and dedicate another account to save and accumulate the rest of your money.


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Growing your money is a smart move. If you get any windfalls or income increase, you should invest in them, so you can receive interests which will help you grow your personal and business wealth.

Learn and Improve your Skills

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You’ll be considered more valuable and in a better position to earn better and negotiate your payments if you’ve got more to offer. Learn new skills and improve on your existing ones, as this will help you diversify your work and consequently, your income.

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Create an Emergency Fund

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Saving for rainy days might seem pessimistic, but it’s the wise thing to do. Stash some cash every month in a bank account dedicated to emergency expenses. Freelancing could come with certain costs, in terms of the volume of work coming in and the availability of clients, so it’s essential to have money to help you stay afloat in case the unexpected happens.

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Maintain Financial Discipline

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Let’s say you decide to quit your job to become a freelance software developer and you earn over half a million from your first gig— more than you ever made from your paid employment— you might be tempted to splurge and go overboard, buying things you don’t need. To entirely stay financially healthy as a freelancer, it’s essential to maintain financial discipline by spending wisely and avoiding impulse purchases.

Make Important Purchases

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If a new laptop or any other gadget is going to make you more efficient and able to take on more jobs and make more money, you should purchase them (as long as you can afford them, of course). Doing this is an investment in yourself and your business.

List Your Business and Financial Goals

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Having a list of goals will provide you with a
proper blueprint to guide you as you navigate your freelancing career. If a primary goal is to rent a studio, give your workspace a makeover or pay back a loan, having this listed out and in focus will help you manage your finances better so you can achieve them.

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