Managing Finances in Freelancing

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  • Are you always blaming yourself for irregular income and Tired of Late Client Payments?
  • Are you also sick of Unnecessary comparison of compensation with competitors (even though its a service and everyone has their own rates)
  • Is your Freelancing Journey Loaded with Uncertainties- Should I say yes to every little project I can find? Should I be super stingy with my money?

Or you just want to hop on the freelancing bandwagon and see it for yourself?

If the struggle sounds relatable then this thread is for YOU!
Listen to @Vanshika_Mehta as she shares her journey of Freelancing.

(Background: She stays with her Grandmother hence no major expenses such as rent, food etc.)
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The best thing about Freelancing is also the worst thing about it & that is its 100% DIY

You Decide Your Worth.
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  • You have more authority, control and power over your money.
  • No third person interferes b/w you and your finances

Read till the End how Vanshi was able to accomplish her Financial goal of 2020 :smiley:

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  • Income is not fixed, unsure so keeping aside a fixed sum every month is not easy.
  • Hard to figure and set a dedicated percentage to investment vehicles.
  • You have to manage money wisely so learning “investment” is another investment
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  1. Charge More: So the variables in this equation are Time, skill and money.
    The Better you get at a skill, the more you can charge in a future project demanding the same skills.
  2. Channels: Majorly LinkedIn, Word of Mouth, Agencies such as Tapchief and freelancer.com and Instagram.
    Create Content in Bulk and invest a major chunk of your time engaging because that is what brings the ROI on creation.
  3. International Clients: Real good money but Hard to find.
  4. More Work: Caution:skull:: Prevent the Burnout at all costs and try to find a balance.
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Three Tabs:

  • Income Received
  • Income to be Received
  • Income delayed
    They help in keeping a tab on the money that’s going to come in so that you don’t burn yourself out assuming you don’t have money for the upcoming month.
  1. Investing in proportion to the income earned that month.
  2. Don’t spill your invoices all over the place. It will be very difficult to untangle especially while filing taxes.
  3. Well, lol.
  • Try to bring a balance b/w Recurring & New Clients to balance your finances.
  • Recurring ensures you have money to cover basic necessities while new clients ensure minimal redundancy and maximum excitement.
  • 30%: Recurring Clients, 70% New Clients
    (Use recurring as a cushion)
  • Decide a bar (let’s say 1 Lakh) So for contracts below the bar, take 50% Advance and above the bar, take let’s say 30% advance. Customise as per your own expenses.
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Jan 2020- June 2020 Financial Reports:
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Guess what, She had a guilt Financial goal for 2020 and heck yes, achieved it, look for Yourself :smiley:

Conclusion:

-Reverse Calculate to Prevent Burnout

  1. Your Financial Goal is Rs Z
  2. You have Rs Y in recurring.
  3. Now, you just need to work to accomplish X (Z-Y)

-Capitalize the dopamine by setting aside money everytime you sign up a new client.

-Calendar Planning beforehand is important to ensure monetary flow.

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