Over 57.3 million Americans currently engage in some form of freelance work, and research shows that the majority of workers will freelance by 2027. For a new freelancer, it can be scary to navigate money and create an effective budget guide when your income isn’t always steady. Fortunately, we’ve got the guide to help you learn how to manage your money- and splurge with ease.
Track Your Money
This is the first step for all freelancers, and it may be the most important step of all. You need to know where your money is going! And, no, that doesn’t just mean checking your bank account “every so often” to make sure that you’re in the clear.To actually make an effective budget guide, you need to know how much you’re spending and how much you’re saving. Are you spending too much on groceries each month? Too much on eating takeout? Too much on little impulse buys that don’t feel like much of anything- until you add them up?
Fortunately, today it’s easier than ever to track your personal finance and create a budget guide. You don’t even need pen and paper. With free money management apps, such as Mint or Personal Capital, you can simply link your bank accounts and credit cards and view all your transactions.
These apps can provide an overview to see how much income you’re actually making (in proportion to how much you’re spending). If you’re a freelancer, you already know that your money won’t necessarily be predictable. Apps like these can help you predict the downturns and plan accordingly for them.