How to handle money wisely: 7 life hacks for freelancers

1. Keep track of income and expenses

Yes, this activity may seem boring and annoying, but it is necessary to analyze your financial situation. You will see how much you get and how much you spend, how much money you need on average per month. It is then easier to set financial goals and plan purchases. In addition, it will become clear how many orders you need to take per month in order to live comfortably.

You can create a spreadsheet in Excel for greater clarity, or use the application if you want your personal budget to be always at hand.

How to manage your freelance money: Google Sheets, Personal & Family Budget template

2. Consider future income when planning

Create a tab in your table and add new orders to it with the estimated amount of payment. Most companies are engaged in forecasting in order to understand how much profit can be expected in the coming months and years. You don't have to look that far ahead. But it is very useful to have a rough idea of what the next month will be like.

Let's say you have few orders for the next two weeks. Seeing this in your spreadsheet, you will know that now you need to actively look for clients or cut costs in some way.

3. Track your coffee spending

It seems to be a trifle, but if you often work from a cafe, then a rather big amount can run up in a month. Try to keep these expenses to a minimum, especially if you are just starting out as a freelancer. When you have a stable income, you can delight yourself with your favorite coffee with a clear conscience. But do not forget that instead of spending on the third or fourth cup, it is better to set aside money for the next item on our list.

4. Open a pension deposit

Many freelancers forget about it or think they don't need it. But since you don't have an employer to take care of you, take care of yourself.

Do not delay with this. As soon as you started to receive a stable income, open a deposit with the maximum interest and set up an automatic transfer of funds. Now many banks offer special programs for pension savings, study the offers and choose the one that suits you. Think of it as another tax, not money that could be spent on something else.

5. Allocate some of your income to developing connections

You will need to meet with clients, potential customers and partners. In such cases, offer to pay for a cup of coffee or lunch with the other person. This gesture may seem like overkill, but it actually helps build business relationships. Let these costs not always pay off, but it is better to lose 300 rubles by buying someone coffee than to miss the chance for an important acquaintance.

6. Don't waste everything you get

Not going negative is not an achievement yet. If you spend everything you get every month, it's time to start thinking about your strategy. The job should generate income, which can then be used to move to the next level. For some, this is starting their own business, for others - investment or early retirement. Decide what is important to you and strive for it.

And don't forget about contingencies. You may fall ill or be left without projects. In such cases, you need a financial safety cushion that will help you survive for a couple of months without income.

7. Invest in your development

Don't skimp on professional growth. Better to skip buying new clothes or going to the movies, but attend a useful workshop. Keep track of what is happening in your area and regularly pump your skills. This will help you stay in demand and gain a competitive edge.

Do not stop developing after graduation: read professional literature, take courses, look for people from whom you can learn something. This investment will pay off in the future with new projects and clients willing to pay more for expertise and skills.