Having excess money as a freelancer gives you the opportunity to grow. Smart investments mean more money, more money means room for growth – do it right, and you have a constant cycle. But how do you get there? Investing your money is always a big decision and we’re here to help you make it. This article covers four suggestions on where you should put your money in order to keep growing in a sustainable way.
1. Financial cushion
First and foremost, make sure you’re covered for any unexpected expenses or a drop in income. Every freelancer should have an emergency fund. It is often the difference between a career ending prematurely and staying afloat until your big break.
The infamous feast and famine cycle is also something to consider. There will be months where you get more clients than you can handle (don’t miss our article on how to handle multiple clients) and others where you stare at your email program, hoping for someone to reach out. If you save some money during the so-called feast period, you’ll get through the famine. If not, you’re in trouble.
A financial cushion should last you at least three months of basic expenses, but having up to half a year is advisable.
2. Skills and workshops
After having a good enough emergency fund, it’s time to think about improving your freelance business. How do you do that? Since you are the business, the answer is simple – improve yourself. You can increase your niche knowledge and get really good at one specific thing. Or you can diversify your skillset and aim for things that synergize well with your business. Say you write articles – learning how to make infographics can propel you to a whole new level content-wise.
In addition to investing into raw skills by taking courses or trainings, going to workshops and conferences is also a great idea. This will give you a chance to expand your network, learn from fellow freelancers and get inspirations for your own business.
Another great way to invest your money is to expand your business. Freelancing doesn’t have to be a one-man show. Getting a lot of clients and often having to decline good project offers is a sign that you want to hire additional people. It’s not an easy transition for a freelancer. Your mindset will have to change from being the sole person behind the counter to leading a team. But it can be very much worth it. More freelancers equals more manpower and that means you can take on big challenging projects, which were probably out of your scope before.
4. Healthy working environment
And to wrap it all up, don’t forget to think about your health. Many freelancers disregard that and I have done so in the past, too. You’re probably sitting on your desk for at least eight hours a day. Get a comfy chair! Make sure your monitor is a good distance away from your eyes and you don’t have to strain your neck when looking at it. Small things like that add up and can prevent a lot of trouble in the future.
What do you invest your well-earned freelancer income on? Let us know in the comments below the article.