Most freelancers live from hand to mouth. Nearly every nickle earned goes toward personal expenses. This may be the one serious drawback to freelancing. It doesn’t matter what area of work you freelance in, the amount of work offered will have periods of extreme fluctuation. It may dry up altogether, and the freelancer will be left scratching for pennies. Few freelancers receive a regular weekly salary of a known and stable amount, which makes it difficult to live on a particular set budget.
Freelancers are used to those financial ups and downs, but how do they deal with the sudden expense of fixing a leaky roof, getting a new radiator for the car, or replacing an old furnace? These are sudden and necessary expenses that have to be dealt with.
Freelancers should consider keeping a rainy day fund, and they should begin building it before giving up the rat race to freelance. The fund should amount to at least three months pay, and it should only be touched when absolutely necessary. When part of it has to be used, it should be built up again.
A freelancer’s rainy day fund will reduce the financial stress. It’s not easy on the psyche when you don’t know where your next commission or job is coming from, whether or not the work you do will be wanted, or how you will pay the electric bill if an employer doesn’t come through with their payment on time. Knowing you have that fail-safe will make the freelance lifestyle so much more enjoyable and rewarding.
If the freelance work you do, whether it’s writing, photography, art, or any other work, does dry up altogether, you will be financially safe for three months. This is time enough to look for other avenues of income, wait out the bad times, or rejoin the rat race, if only temporarily.
- Freelance Writers Learn to Interview like Diane and Katie in 10 Easy Steps (savvywritingcareers.wordpress.com)
- It Will Happen to You (freelancefolder.com)
- The Number One Tip For New Freelancers. (xemion.com)