Pennies And Plans: Financing Your Freelance Life

Source – CC0 Licence

More and more people are getting involved in the freelance way of life. Whether people are starting their journey into side hustles or they are perusing the freelance boards online it’s becoming a particularly popular pastime. But with a freelance way of life can come a precarious lifestyle, especially in terms of finances. This means that whatever profession you are involved with, in a self-employed or freelance capacity, you’ve still got to keep yourself financially afloat. It seems that the two aren’t mutually exclusive! As such, we’ve got to find ways to finance our freelance life. But what can we do to make sure that we are pursuing our freelance passion while keeping afloat?

Plan For Your Retirement

It may be a long way off and you might think that you need to focus on the here and now but whatever happens, you will have to retire one day. This means that you’ve got to think about diversifying your portfolio right now. Set up a savings account, but also begin to query the best type of investments that you can make right now. Investments may seem to be a risky venture, especially when you’re trying to scramble the pennies together but whether it’s old toys or bitcoin there are so many little investments you can make that could potentially become a nest egg later on. Bitcoin is a perfect example because much like stocks and shares it can go up and down in value. And while many people may think that they shouldn’t get involved in stocks and shares it’s a fantastic way to diversify their portfolio. You can check it out here if you want to get started in bitcoin. But the bottom line is that your retirement will come by sooner than you think. Start putting money aside for it now and you won’t stress later.

Know Where Every Penny Goes

The most stressful thing about being a freelancer is managing your money. Your freelance life can feel like spinning plates when you’re trying to find clients or jobs but you’ve got to put a system in place, not just so you can manage all of your incomings, but also understand where every single penny goes during the course of the month. It’s a good idea to have accounting software or a system that you can follow. Because we have to remember that a certain percentage needs to go towards tax as well as savings. It may seem impossible to save but there are numerous apps out there that can do the saving for you. Finding the right app that can squirrel away the slightest bit of money, even if it is just a few pennies, can keep your rainy day fund building up over time.

Keeping on top of your finances is one of the most stressful aspects of being self-employed. You want to be able to devote yourself wholeheartedly to your passions but this means that underneath it all there’s got to be a modicum of common sense. Any creative professional needs to have some business acumen and understanding your finances is the perfect opportunity to exercise this.