Today, many 9-5 workers are ditching their traditional schedule in favor of setting their own hours. It’s easier than ever to make money as a freelancer, yet you’ll still need to be vigilant with your own money. Like any business, there are some startup costs to consider.
The freedom to work from wherever at your own hours leads many to freelancing as a career. Yet, the complicated tasks of running your own business often scare away many prospective freelancers. That’s why it’s a smart idea to have some money saved before you start your own freelancing business. It’s common advice to have enough money saved to cover three months of expenses before you start your own freelancing business. Beyond taking that protective step, follow these money saving tips below.
1. Know Your Tax Deductions
It’s a smart idea to get to know your tax deductions before you start freelancing. Keeping accurate track of your spending and expenses will come in handy when tax season comes around. Luckily, there are a lot of things you can deduct from your taxes as a freelancer.
From the home office deduction to your utility bills, you’re able to deduct a portion of it from your overall tax payment. However, it’s still important to keep accurate records to ensure you’re saving enough for tax season.
2. Charge More Money
Of course, charging more money for your freelancer services will help you save more money. It’s important to value your services. For many new freelancers, it’s difficult to understand how to charge your clients. Unlike a traditional employee, you likely will only be brought on for a few key projects. As such, you’ll charge more than a traditional employee’s hourly rate.
Finding value within your services will help you keep your rates in perspective. Since you will have clients here and there, especially in the beginning, you’ll need to charge enough to cover your monthly expenses. Do some market research to determine what you should be charging for your experience level and go up from there.
3. Look For Discounts
Discounts come to those who wait. Or, rather, those who search. From business cards to new tech, don’t feel like you have to buy everything at full price. Having the right tools to run your business will help your days working from home run smoother, but that doesn’t have to come at a premium cost.
For instance, check Vistaprint Deals to print business cards and other materials at a lowered cost. Unlike a larger business, you don’t have a large budget for supplies and other must-haves. Make the most of what you do have by being on the lookout for the best deals.
4. Find Additional Income
Another smart freelancer money saving tip is to have multiple sources of income. You can’t put all of your eggs in one basket when you work online. Since the internet changes so rapidly, you never know when you’ll need to try something new.
Alternatives include starting a blog, looking for online work, and finding a wide variety of clients. Clients might go in a different direction, so having a few you work with regularly will ensure you don’t have gaps in your income.
5. Search For Free Marketing
When you’re a freelancer, you need to invest some time in marketing. Paying for a website is a good first step, but don’t feel like you also need to spend money on marketing. There are a lot of free marketing channels like social media, LinkedIn, and search engine optimization. All of these options will put you in front of the right clients without the added expense.
Are you starting your own freelancing business? If so, make sure you’re smart with your money. There’s money to be had freelancing, but it won’t always come easy. Make sure you save efficiently and create a strategy for optimizing your income.