5 saving hacks for freelancers to keep you financially stable

Freelancing can be a lucrative career path. Yes, it takes hard work, discipline and perseverance, but it can bring in far more coin than many nine-to-five jobs do. The fact that it *also* gives you more freedom and flexibility is another popular perk.

But, in the world of freelancing, it’s either feast or famine. While some months might be so financially rewarding that you forget, albeit temporarily, that you are not, in fact, a baller, in others work can be scarce it will have you scraping together the pennies.

One way to prevent this financial rollercoaster is to make saving a habit. Here are five saving hacks for freelancers that will bring you more stability.

1. Create a monthly budget

The first step in getting yourself into a saving headspace is to see where all of your money is going. This is where drawing up a monthly budget helps. Divide your money into different categories, allocating enough to cover everything from bills to rent to groceries.

2. Separate your finances

As a freelancer, you are the boss of your empire. You might just be one person, but you are still a business, so why not get a separate credit card specifically for business-related expenses? This will make it easier to view your spending when it comes to doing your taxes.

3. Stay on top of your taxes

Speaking of taxes, doing yours the right way can help you save money. Keep a spreadsheet documenting all of your income as well as relevant expenses, such as business-related equipment purchases or contributing to a retirement annuity. It’s also crucial that you put away 25% of your earnings for each project to pay provisional tax (and that this 25% tax deduction is factored into your pricing).

4. Make meetings budget-friendly

If the COVID-19 taught the world anything, it’s that a lot of work can be done remotely (something that freelancers have known all along!). Instead of meeting for coffee with clients and watching the bills rack up, take your meetings online instead. Not only will this help you save, but it’s safer, too!

5. Watch your spending

The best way to save money is to, of course, spend less of it. And this is especially true for independent professionals who don’t have the guarantee of a fixed income. It’s important to live within your means and to put enough money away to keep you afloat should work become scarce.