Without a doubt, being a freelancer can be highly exciting and interesting, you get to work on your own terms, commit to projects that deeply interest you, and play to your skill-set.
However, if there is any downside to it as such, it’s that your monthly income is not a constant given, it is bound to fluctuate.
If you are a freelancer reading this, we are pretty sure that you can attest to the fact that your income spikes and dips, there are peak months when you are earning a lot and there are months when you are just earning enough to get by.
As such, saving money as a creative can be quite challenging especially when you are not sure what your next monthly earning is going to be. That’s what prompted us to create this short guide for you that collates the best tips you can implement in your quest to save money;
1. Create a business account separate from a personal account:
Yeah, we get that you are probably the only one in the business and the money is technically all yours so why then do you need to have a business account, you might wonder.
Well, you need to understand that your business is a separate entity from you and you should treat it as such. Recognize that the operational costs required to keep your business functioning are separate from your personal costs.
Keep a separate tab on the monthly operational costs that it requires to keep your hustle going e.g. data, fuel, and other costs that may be attached with your craft.
Pay yourself monthly from your business account and leave the operational costs plus some extra change in your business account.
That way, even during a less income-optimal month, you know you have enough to keep your hustle going.
2. Save at least 20% of your personal funds first:
Congrats, you have created a business account for your hustle, you now have operational funds lying in your business account, and you have paid yourself personally from your business account. So what’s next?
Save! That’s the answer.
Before you start flexing and doing any other thing, try to set at least 20% of your personal income away.
The goal is to build a runway of stashed funds that can help ‘shock’ your income in those months when they are not peak.
3. Figure out how much you spend personally every month:
Have an average figure for how much you personally spend every month. This might seem a bit strenuous to keep track of at first but you just need to be mindful and stay consistent at it, you can employ digital tools like DailyExpense to keep track of your everyday spending.
The plan here is that once you have a figure for how much you spend averagely on a monthly basis. In those months, when excess cash comes your way, say from an unexpected gig or maybe a monetary gift.
You already know how much you spend monthly and that way you can just easily save the excess.
We hope you got value from these 3 tips we shared with you. Do you want to start implementing them now? Sweet! You can get started here.