Freelancing is a lot like running a company, only you have to fill all openings. One of the things companies think about most is what happens to their money and how they can cut on their costs. The dynamic work of a freelancer will often leave you wishing you had more savings, be it as a safety net or as a way to invest towards growth. There are a lot of things you can do to save a significant part of your earnings.
The five tips below are things that can and should become part of your daily routine. That means you won’t actively have to worry about saving money, and will be able to focus all your energy into your work thanks to the reduced stress.
1. Have a freelance budget
First and foremost, treat your business as any company would and implement a budget. Know how much you spend and earn on a monthly and early average. If these averages don’t pan out, you know you have to start cutting your expenses. Think about what is absolutely necessary and start saving on the more wasteful items. If you have a surplus, on the other hand, don’t waste it and put some money aside instead. Think about improving your business even further by investing into it, too.
2. White money for black months
Invariably, you are going to have different types of months. Some will be the really good ones where everything seems to go as planned and better. Others might make digging between the pillows of your couch for spare coins seem like a good idea. Every freelancer knows that. The problem is easily tackled by redistributing. Save those extra profits for the tougher months that are coming, preventing the stress of having to make ends meet. It is also imperative you use the times when you have fewer clients, for example by adding to your skillset and improving yourself.
3. Use more free software tools for freelancer
No matter what field you’re working in, software tools are going to be a big part of your freelancing job. Whether it is your website, business cards, budget, taxes or something else, there are a lot of great free resources out there. Actively search for those freebies, instead of buying the first popular thing you come across. If you know you will need some premium products, make sure to test them, most will offer free trials. You don’t want to end up buying something that isn’t right for you and wasting money.
4. Deduct expenses from taxes
As a freelancer, you almost certainly have the right to deduct some of your work expenses from taxes. Don’t hesitate to exercise that right. Whether you turned a room of your house into your office, bought some new tech or have a large phone bill as a result of talking to clients, it is probably deductible. That can save you a lot of money, so make sure to look into it!
5. Eat in
To end up on a lighter, but still serious note, learn to cook. Yes, it will take up some of your time, but it is significantly cheaper than eating out. And while you sometimes don’t have the choice as a regular employee, freelancers can always eat their home-made dishes. Having a great meal you made all by yourself can also be extremely satisfying, giving you that extra bit of motivation to dive into your work after a break.
Have something to add? We’re always happy to get feedback and discuss in our comment section below!
Pic: © Steven Frame_shutterstock
