Ive cataloged assignments completed and money earned publicly, through monthly income reports atThe Write Life.
But what I dont often dig into is how to budget as a freelancer.
All that requires a good bit of juggling.
See also: Our ultimate guide onhow to save money
Heres how to keep every ball in the air (and every bill paid).
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Leave out money for clothes, entertainment and other non-essentials.
My monthly overhead cost is $1,500.
Every single month, even the lean ones.
If youve beenworking with freelance clientsfor a while, youve probably figured out their payment patterns.
Heres an example of this pop in of income planning.
So that means I really have $266.50.
Notice how I mentioned taxes, debt and savings?
Thats an essential part of my budget, so well look at those three categories next.
However, it has completely changed the way I interact with my freelance budget for the better.
I also put 20% of my income towards debt repayment.
Lastly, I put 10% of my income into a savings account.
This is the best thing Ive done for myself as a freelancer.
Having that savings buffer helps me feel more secure about my irregular income.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
