The lives of freelancers are full of challenges. They need to promote their skills, market their products and services, build a client base and manage their time to complete the work they undertake.
In addition to all these issues, which are already quite a few, there are also some financial concerns, after all, the self-employed professional generally has an income that varies each month.
With this in mind, it is natural for professionals in this category to wonder how they can save money or make it go a little further. In this regard, check out the 10 tips we have put together below!
Set clear financial goals
Consider not only your desired monthly income, but also the amount you’d like to invest and save on a monthly basis. This comes in handy particularly when creating safety funds and even retirement planning.
Make strategic partnerships
Speaking of ways to save money, check out the professional partnerships you can form in running your business. This includes suppliers, banking products for entrepreneurs, small businesses that share resources for freelancers, project cooperation, advertising partnerships, among others. Keep your networking active, both online and at in-person events. Meet people with whom you can make profitable exchanges.
Create an emergency fund
We never know what tomorrow will bring. This statement applies to everyone, but it is perhaps even more true for self-employed workers. Months of financial abundance can be followed by months of scarcity, and we must prepare for this. Emergencies can happen, and it is necessary to have money to deal with them. Therefore, with the amount you manage to save, build up an emergency fund — such as medical expenses or the loss of important clients.
Avoid debts
One of the biggest enemies of self-employed entrepreneurs is debt. Especially in US, debts are made worse by extremely high interest rates, which create a snowball effect that can be very difficult to get out of. Loans and credit cards are traps, often provided by banks to entrepreneurs, but which later turn out to be much more harmful than beneficial. If you are already in debt, focus on negotiating and paying the full amount as soon as possible.
Recognize the taxes that must be paid.
Self-employed professionals must pay taxes. Even MEIs need to pay monthly fees to keep their companies running in US. In this sense, you should know that you are responsible for making these payments. If you don’t do this, you may encounter unpleasant surprises when filing your taxes, putting the survival of your business at risk.
Reduce unnecessary expenses
Analyze your monthly expenses and see where you can reduce them, whether it’s your work expenses or your personal expenses. It’s important to start looking at each purchase as a strategic investment. Be rational and avoid impulsive behavior. Routine things that go unnoticed can compromise your monthly budget, such as eating out and subscriptions to services that you don’t use often. Be careful!
Invest in financial education
Financial education is the area of knowledge that helps people manage their money better . It encompasses topics such as: sources of income, saving methods, planning purchases, paying off debts, investment possibilities and managing your own business. Therefore, it is essential that any self-employed worker is always updating their knowledge in this area.
Consider health and disability insurance
Being a person registered under the CLT regime offers certain rights and benefits, especially in the event of illness or disability. These risks can also occur with self-employed professionals, so it is important to be prepared.
Check out possibilities to diversify your income
As they say, don’t lay all your eggs in one basket.. This is to mean that it’s more secure for you to diversify your income sources compared to relying on one. Therefore, if you can, provide other services, produce digital products, invest in other sectors, etc. Experts in the area of literature, for instance, can serve as private tutors, writers, grammar editors, translators, interpreters, etc. Look at your career possibilities.
Being an entrepreneur is a difficult undertaking that requires entrepreneurial creativity and courage. Besides, it is a calling that calls for a great deal of balance and the capability to handle resources — like money and time.