Freelance work can, unfortunately, be a little unpredictable at times, as some clients cancel, cut back their workload or there can be period were you will be awaiting new work orders.
However, there are ways to ensure you’re protected if the worst should happen, so you won’t have to worry about finding helpful debt solutions.
1. Limit Your Spending
Every freelance should aim to spend less than what they earn. Easier said than done, we know, but it is essential if you want to survive during irregular work periods. By keeping a tight budget, you’ll be able to track your spending, whilst saving some extra funds for the rainy day period.
2. Have a Dream Wage Aim
Identify how much your worth. It’s going to take time for you to build up a reputation as a quality freelancer, but once you do, you can charge higher rates for a higher quality service. Have a dream wage in mind and make it your goal to achieve it within a set time. This will ensure you consistently improve the quality of your work, and you won’t undervalue your services.
3. The Paycheck
Give yourself a handy little paycheck. After you’ve paid off your bills and debts, give yourself a disposable monthly amount to play with – which can be used on things such as going out, clothing and other luxuries. Say if you have £600 left over in your income each month after everything each month, split the amount in half, putting half in a savings account, and the other half in your pocket.
4. Retirement Fund
It is essential that we all start saving for our retirement years as soon as possible, as we probably won’t be able to rely on the state too much for a decent pension in the future. Freelancers don’t have the option to take part in a work-placed pension, which means it is essential you open up a private pension fund to ensure you don’t have to work your whole life, and you won’t struggle for money in your later years.