Working as a Freelancer has a whole host of great benefits. However, it also comes with some drawbacks as well, one of the biggest being the lack of dependable monthly income. This means that for freelancers it’s incredibly important that they understand how to save money as best you can. To help you to make sense of what can be incredibly complicated, we’ve put together our top six ways to save better as a freelancer.
1. Shop smarter
One of the best tips that you can have for saving money can be applied whether you’re a freelancer or not. It’s shopping smarter! There are things that you have to buy on a regular basis, like food. But this doesn’t mean that you have to blow your Entire Budget on a meal! Think smarter about shopping, buy in bulk where you can, and shop around, which can really help you to save money.
2. Always take the time to plan your finances
We should all try and have a little more focus on our finances, but when you’re a freelancer this is even more important. You need to know what is coming out and when, so you can put together a budget and a financial calendar.
3. Try and save little and often
As a freelancer it can be really hard to know what money is going to be coming in much more than a couple of weeks in advance. Not only this, but it can also be really difficult to save large amounts of money once a month. A much better approach is to take your savings at a little and often approach. If you have some money left over at the end of the week, put some of it away, that way you know you are still adding to your nest egg, but you are not having to scrimp and save to make ends meet.
4. Figure out tax
Taxes are a headache to every single freelancer out there, but the thing to remember about taxes is that if you take the time to get them right, then you can really transform your entire budget. It might take some effort and some time to figure out how to approach tax in the right way, but it’s definitely something that is worthwhile. Not only in the short-term but also the long-term for you as well.
5. Try to think long-term
When you’re living in the here and now, it’s easier said than done to try and think about things as long-term goals. However, as a freelancer, sometimes it’s always best to look to the future. The worst thing that you can do is get yourself into a feast-and-famine cycle is to spend way more than you normally would on a good earning week/month, then have to struggle when work isn’t coming in. Instead, look at the bigger picture, plan a month in advance, or even further if you can. This will really help you to beat that cycle.
6. Stay positive
When you’re feeling the pinch with your finances, it can seem hard to be bright and happy. Especially if earning the money that you need is all down to you. The best thing that you can do is to try and stay positive, stay in a good frame of mind, as it probably won’t be long and things will turn around for you again.
We hope that our top tips have helped you to make sense of saving when you are a freelancer. However, if you are still left with other questions “such as when will I get my tax refund?” then you might want to get in touch with a financial expert who can guide you through the process.
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