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A Marketing Freelancer’s Guide to Organizing Finances- the Right Way

organizing finances

Being a fulltime freelancer is a fantastic gig. You’re able to set your own hours, work from home, and do something that you presumably love.

That comes with a price, though — organizing finances as a freelancer is more complicated than it is as an employee.

Just because it’s harder, though, doesn’t mean it’s impossible. You just have to know how to stay organized.

Read on for our top five tips on how to keep your finances organized as a freelancer.

Keep Track of Your Income

First things first — you’ve got to know how much money is coming in each month.

A lot of freelancers laugh at this and say that there’s no way to know how much they’ll make each month. There are definitely feast and famine months; that’s just part of being a freelancer. Still, you can’t manage your finances without having a rough idea of how much you make.

Use a pay stub creator to create a paycheck for yourself each month so that you have a record of how much you make over time.

Make Sure You Set Aside Money for Taxes

Once you know how much you make, you can start to figure out how much you need to set aside for taxes.

Since you’re self-employed, there’s no employer who will automatically deduct taxes from your paycheck. That means that you’re responsible for paying Uncle Sam the money that he’s due.

It’s a good idea to pay quarterly to stay on track. The last thing you want is to find yourself unable to pay all of the taxes you owe when April rolls around.

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When you pay, don’t forget to deduct your business expenses!

Stick to a Budget

When you freelance, it’s not enough to just have a personal budget. You should have a business budget, too.

Do you know how much you spend on business expenses each month? That could include things like marketing yourself, website maintenance, printing costs, and more.

Try creating three separate bank accounts: one for your personal spending, one for business spending, and one for savings. You’ll thank yourself later.

And while we’re at it — don’t forget to save money when you can, including putting money in a retirement fund.

Know Your Worth

As a freelancer, you have the unique ability to control how much you get paid. That means that you should also be giving yourself a raise periodically.

Whether you raise your rates to make a cost-of-living adjustment or because your skills have increased, you should be raising your rates. Make sure that your pay doesn’t stay stagnant.

Know your worth and don’t be afraid to ask your clients for more money for the work that you do. If you’re not sure if you’re making enough, it’s okay to ask other freelance marketing professionals about what they charge.

Organizing Finances Doesn’t Have to Be Hard

Organizing finances as a freelancer is complicated, but it doesn’t have to be difficult. With a little planning and know-how, you can enjoy the peace of mind that comes with a well-balanced budget.

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