4 simple saving solutions to help you stay solvent and stress-free
One of the biggest things preventing people from taking the solopreneur plunge or cutting their freelancing career short is because of money. While freelancing can be a fun and flexible career path, it can also be inconsistent. Some months you might yourself rolling in cash…
… while others might have you looking through every pocket in your clothing collection, hoping to come across some coins you may have forgotten. In fact, according to SA Freelance Media Industry and Rates Report 2018/2019, which was conducted and compiled by SAFREA last year, indicated that rates and payment issues were among the top five challenges facing freelancers. If you often find yourself pinching your pennies, here are four simple saving tips to keep you solvent as a solopreneur. You’re welcome!
1. Hold back on unnecessary spending
This might be stating the obvious, but if you want to save more of the money you have, you need to spend less of it. But this is often easier said than done! What might make it easier is remembering that freelancers have no fixed income or company benefits, so it’s wise to funnel money away into a savings account for household or medical emergencies which will, at some point, arise.
2. Stay on top of your taxes
Dealing with taxes is another area in which many freelancers struggle, mainly due to lack of understanding as well as the complicated and mind-numbing admin that comes along with it. But staying on top of yours can actually be of financial benefit in the long run, as you will be able to claim back for work-related expenses, such as your work-from-home office space and equipment.
3. Create new budgets monthly
Just as your income as a freelancer is likely to have some months be more lucrative than others, life has a way of making some months more expensive than others, such as the sudden onset of sickness or a burst bathroom pipe. This is why creating a new budget ahead of each month is a good idea, as it will give you an overview of any upcoming expenses as well as incoming money.
4. Download a financial app
It’s 2020, and there are plenty of apps on the market that can make managing your money a whole lot easier. And Guild is one of them. Guild is totally free and allows you to sync your profile with your bank account, get an overview of your business and personal finances (making tax season a breeze!) and generate professional invoices and quotes to send to clients from your dashboard.
