Here are a few tips to help you budget:
Open a Savings Account
You will want to save up some money before you quit your job and freelance full-time. Once you are a full-time freelancer, make it a priority to add to your savings account as often as you can. This will reduce a lot of the stress that comes from not having a regular income stream.
You also need to put away some money for unexpected expenses, such as medical issues or house repairs. Even if you have to live frugally in the beginning, make saving money a priority.
Understand Taxes
As an employee, you never had to worry that much about tax. However, as a self-employed freelancer, you must understand how taxes work. You will need to know what must be paid and what methods are available to reduce the amount you have to pay.
Plan for Retirement
You should also plan to put away a portion of your money for retirement. As much as you love your freelance career, there will come a day when you want to spend more time relaxing than working. You need to figure out how to best invest your money, and how much to invest in order to be able to retire at a reasonable age.
Many freelancers think they will do this after they get established, but the truth is they never do. So start putting a little away at the beginning of your freelance career.
Get Health Insurance
You don’t want to put off health insurance; it is a safety net that can save you a lot of time and money in the long run. Even if you don’t need it now, you will someday. You may have to shop around to find the best rate, but at the end of the day it will give you peace of mind.
If you treat your freelancing career just like an ordinary job and put away money for taxes, retirement, and health insurance, you will find that your stress levels will drop drastically. So make your freelancing career a success by budgeting for emergencies and your future.
Nixon Williams can help with more information for freelancers, from freelance accountants to freelance web developers
