As I’m sure you are all well aware, freelancing can be lucrative – in fact a recent report by GCash and financial services company Payoneer shows that Filipino freelancers earn 57% more per hour than their locally employed peers. However as you’re also probably aware, freelancing also has it’s downsides with one of those being the often unstable income flow as projects end or clients decide to go in a different direction. If you’re not prepared for this, these dips in income can be difficult to manage. Here are some finance tips, to better manage your money – many of you are probably doing some of these already. EMDBPO hopes that your work with us not only provides for your day to day needs but can also help contribute to your long term financial stability.
Financial and Budgeting Tips for Freelancers
- Keep track of your expenses
Knowing how much you earn and spend each month is a must for anybody, but this is especially important for freelancers and virtual assistants who are paid per project or task. Knowing where your money is going will help you budget better and avoid overspending.
- Invest in Yourself
Use some of your earnings to invest in your professional development, whether it’s taking courses, attending conferences, or buying new equipment. You can learn about something related to your field (such as new techniques or programs to use), or you can branch out and learn something completely different.
- Have an Emergency Fund
Unexpected expenses can pop up at any time, so it’s important to have a savings buffer for these situations. Aim to save up 3-6 months’ worth of living expenses in case of an emergency. You can do this by putting away a certain percentage of your earnings each month into a dedicated emergency fund account. You don’t have to feel pressured to build it at once. What’s important is you get into the habit of building one.
- Stay Insured
Unlike with most companies that offer their employees health insurance, virtual freelancers typically have to rely solely on private insurances that they fund themselves. Make sure you have health care insurance in place so you don’t need to worry about medical expenses should you unexpectedly have them.
- Find Ways to Save Money
Look for opportunities to reduce your monthly expenses and put that extra cash towards making more money. For example, consider switching to a cheaper phone plan or canceling subscriptions you don’t use.
- Stay Organized with Invoicing and Accounting Software
With so much paperwork involved in freelancing, it’s important to have the right tools in place that will help keep everything organized. Use apps like FreshBooks or Quickbooks to manage invoices, track your income and expenses, and analyze metrics about your business performance.
- Build Relationships with Clients
Building good relationships with clients can not only lead to repeat business but can also result in referrals and higher-paying projects. Always aim to deliver quality work on time and communicate effectively throughout the project.
- Diversify your Income Streams
Don’t put all your eggs in one basket by relying on just one or two clients for work. Try to diversify your sources of income so that you’re not as vulnerable to fluctuations in any one area.
- Get Paid What You’re Worth
When negotiating rates with clients, always stand your ground and don’t be afraid to ask for what you deserve. Remember that you have the power to walk away from any deal that doesn’t feel right, so don’t settle for less than you’re worth!
- Keep a Positive Outlook
Freelancing can be challenging at times, but it’s important to maintain a positive attitude and stay focused on your goals. Remember that hard work and persistence will pay off in the long run!
By following these financial tips for freelancers, you’ll be on your way to financial success. Just stay disciplined, organized, and always aim to deliver quality work and you’ll be well on your way to a bright future in Bacolod.
Start Saving Up For Retirement
When preparing financially for the freelancer life, retirement would probably be left out on anyone’s to-do list. Many people don’t realize that they can’t be freelancers forever. As a virtual assistant, look for ways to make money work for you when you reach your retirement years. Now is the best time to start making long-term investments in the real estate and stock markets.