If you are working freelance and don’t have a regular set amount of income, balancing the books might be challenging for you. There are some things that you can’t control each month, such as your income, but you can always shop around and wait for larger purchases to make sure that you can afford them without getting into debt. Below you will find a few tips on managing your freelance budget better with a family.
Image via Anete Lūsiņa@anete_lusina
Have Long Term Plans
Most people working as a freelancer tend to live from one month to the next. You will need to focus on your long term financial plans and change your attitude towards money. Whether you would like to save up for a family holiday, save up enough for a deposit or moving house, you have to create a bucket list of things to do with clear deadlines, so you can do things in your business that will help you achieve them.
One of the things you need when trying to manage your freelance family finances is flexibility. Not all the bills will be paid on time, and you might have to face delays when dealing with project work. This means that you need to have a flexible budget and allocate money for paying your bills first. If you have funds left over for a weekend away or a day out, you should plan this at the end of the month, but if there isn’t enough, save it up and add it to next month’s budget and plan something bigger,
Save for Holidays and Larger Purchases
Image via rawpixel@rawpixel
As a freelancer, you will need to make sure that you are not stretching too far, as your income for next month is not guaranteed. This means that you have to allocate excess money for larger purchases every month. Have a minimum saving plan to stick to, but if you have a particularly good month, put more toward the savings to have a rainy day fund.
Protect Your Finances
One of the things people forget when starting to work freelance is protecting their finances. It is crucial that you have an income protection for falling ill, as you are likely to lose your source of salary for a while. At the same time, you should ensure that the future of your family is safe, and get in touch with estate planning companies like Fielding Triggs to save money on wills and asset protection.
Ensure You Get Paid
One of the uncertainties of working as a freelancer is when and whether or not you will get paid. You can eliminate the risks by consulting with a legal company and making your contracts legally unquestionable. Even if you are a freelancer, you will need to get paid for the work you do.
Managing your finances as a freelancer might be challenging. Make sure that you have a detailed financial plan and a rainy day fund, so you can look after your family and your financial future.