Why Every Freelancer Needs to Organize Their Finances
Give your business a fighting chance.
People describe the switch from corporate to self-employment as “taking the leap.” That sounds a little spontaneous, right? Follow your dreams. Throw caution to the wind. Take the leap.
How enchanting.
In reality, this kind of career shift should involve way more meticulous preparation. Or else you’re asking for undue stress that will make the transition waaaaay more difficult.
Would you prepare for anything else in life this way?
Would you buy a used car without looking at the mileage? Would you choose a college without considering the price or tuition? You’re going to wind up biting off more than you can chew, putting yourself in a fragile position.
Self-employment is volatile, especially for freelancers. When you escape the corporate world to pursue your entrepreneurial dreams, you also forego the stability that normal jobs provide. Defined structure. Set schedule. Fixed income. Forced social interaction.
Even complicated personal responsibilities are simplified in the corporate world — like tax withholdings, retirement savings (i.e. 401ks, pensions, etc.), and health insurance.
