You can dream of financial stability as a freelancer if you do it the right way.
But for a person working as an employee, it’s become difficult. Even many people find a 9-to-5 job as boring, doing the same thing every day, with no freedom to explore and achieve their maximum potential.
As a result, they have no personal time left to do the things they want. If this sounds familiar to you, and you can relate to any of these situations, then freelancing could be an exciting new thing for you.
Investopedia states that freelancing is now more popular than ever because freelancers enjoy tremendous financial stability, amount of freedom to do the things they want, when they want, with whom they want. They are their own boss and they have unlimited freedom to call their own shots.
Our previous article on Side Hustle: The Complete Guide for Everyone discusses the basics of side hustles and how to build passive sources of income.
As a freelancer, you already have many skills, so now, all you have to do is find a way to use your skills to build a sustainable income.
There are many ways to do this and here are the five most important ways on How to find financial stability as a Freelancer.
Find Financial Stability As A Freelancer : 5 Important Ways
1. Don’t Limit Yourself To One Thing
Because you are your boss, you have the freedom to choose how you can make money. Learn to adjust to the market demand, season, day jobs, night jobs, and side jobs.
You can diversify and have many streams of income because you are a jack-of-all-trades, with income flowing in from multiple avenues.
You could coach sports in the morning, be an accountant in the afternoon, give music lessons early evening and computer program late at night.
2. Think Long Term
When you are with your clients, think about how you can help them with your products or services over long periods, not just one day or once a month.
By thinking long-term, you will want to get to know them and build a relationship. This, in turn, will make them appreciate you and want to continue doing business with you for the long term.
Since your clients will be with you for the long term, this will help you find financial stability as a freelancer and a consistent sustainable source of income.
3. Track Your Money
Most people don’t know how much money they make each month, likewise, they don’t know how much money they spend each month.
Don’t be like most people!
Money is the lifeblood of any business and it is what keeps it alive and running, especially if you are a freelancer.
Therefore, knowing how much money you are making each month and how much you are spending will help you analyze your cash flow, for proper assessment and help your freelancing business grow, suggests NY Times.
4. Build Strong Credit
Building strong credit makes life easy when you need to borrow money, apply for a loan, or buy something expensive, like a car or a house.
Strong credit will give you access to lower interest rates, better offers, higher limits, and it can save you money on better car insurance rates.
There are a few ways you can build strong credit, some examples are: use only one credit card, pay more than the monthly minimum, and borrow only what you can afford. Petal Card suggests staying below a 30% credit utilization rate and paying off your cards every month helps maintain a good credit score.
5. Separate Business Expenses
As the owner of your freelancing business, make sure you separate business expenses from your expenses. This is important because it is very easy to get mixed up and accidentally reach into your business account for personal expenses, and vice versa.
Take note that as your business grows, the accounting will also get complicated, therefore, separating your expenses now will help simplify your balance sheet in the long run.
Freelancing can be a fun and exciting journey, you can build a sustainable income and you have a strong hold on your finances.
By not limiting yourself to one thing, thinking long-term, tracking your money, building strong credit, and separating business expenses – you will be on track to find financial stability as a freelance business owner.
As a freelancer, you need to think long-term, build relationships with clients to get the recurring business and provide quality service. If you do Freelancing in this right way, it’s a great way to earn money as a teen, college student, professional to achieve financial stability as a Freelancer..
Hope you like this article. So we would love to hear your thought in the comments on finding financial stability as a freelancer.