Have you recently made the decision to venture into the world of freelance blogging? Welcome to this exciting, creative club. Making the change from employment to self-employment is life-changing, and there’ll be a number of things you’ll need to consider, most important of which is your finances. The following tips are a great start for helping you manage your money as a freelance blogger.
Image Source: Pexels
· Speak to an accountant
If you can, and you’re happy to, finding an accountant to help you manage your freelance finances will ensure that things such as your end of year taxes are sorted, that your expenses and receipts are all recorded properly and that the additional stress of managing your own salary for the first time is lifted. You’ll find that there are accountants who specialize in dealing with freelance accounts and they may even be able to help you save money too.
· Set up a rainy day fund
Going freelance is a huge step, but one of the risks is not having that regular paycheque coming your way every month from your employer like you’re used to. Clients can be late with payments, you may lose clients over time, and there are other things to consider that you may need to dip into your emergency fund for (including sickness). Speak to your bank manager about setting up an instant access savings account which you can use instantly should you need it. Remember to save a portion of your earnings into this as well to keep it topped up.
· Keep on top of your paperwork
We’re all guilty of falling into the paperwork black hole from time to time, but if you set out to keep track of your finances from the beginning, you’ll be much better off in the long run. Spreadsheets will be your best friend, helping you to work out deadlines, workload as well as knowing just how much you’re going to get paid that month. There are some great examples of spreadsheets online you can download, including basic project management and more complex spreadsheets for more detailed accounting.
· Pay yourself a salary
Some great advice is to pay yourself a salary out of your earnings, and not touch anything else until your tax return is sent off at the end of the year. Make it realistic so that it’s enough for you to live on but allow some room for unexpected expenses as well. The other portion of your earnings will go on your business expenses and so on, and if at the end of the year you’re left in the plus, you can pay it to yourself as a bonus.
If you’re looking for other ways to boost your income while working as a freelance blogger, you could benefit from some additional wisdom on keeping the money rolling in. Like all things, going freelance is a learning curve, and once you get the hang of it, it will certainly be plain sailing!