She Strengthens

The Unpredictable World of Freelance Finances

As a freelancer, I’ve experienced the thrill of pursuing my passion, but also the stress of unpredictable income. My husband and I both freelanced, which made managing our finances a daunting task. Every month, we’d anxiously await our paychecks, hoping they’d arrive on time. But the uncertainty was suffocating.

Taking Control of Our Finances

I discovered LearnVest, a website that helped me grasp our financial situation. By taking budgeting into my own hands, I felt more in control and less alone. But, I soon realized that traditional budgeting advice didn’t apply to our freelance lifestyle. Income was inconsistent, and paychecks varied significantly. I needed a new approach.

Five Essential Tips for Freelance Budgeting

After months of trial and error, I developed a system that worked for us. Here are the five tips I learned:

1. Budgeting for Essentials

We created a section in our spreadsheet for essential expenses, like rent, credit card minimums, student loans, and groceries. These were the non-negotiables that kept us afloat.

2. Budgeting for Monthly Variables

Next, we accounted for monthly variables, like union dues, medical payments, and unexpected expenses. These were important, but could wait if necessary. We also prioritized savings and emergency funds.

3. Budgeting for Lifestyle

This category included expenses like restaurants, coffee, gifts, and entertainment. By determining our priorities, we could cut back on unnecessary spending.

4. Making the Numbers Add Up

We created a central box in our spreadsheet to track income, breaking it down by source and person. As gigs lined up, we added them to our income, adjusting our budget accordingly. If we weren’t breaking even, we adjusted our lifestyle categories or pushed expenses to the next month.

5. Diagnosing Sneaky Financial Problems

Regularly reviewing our account helped us identify areas where we could improve. We realized we were spending too much on coffee and made changes to reduce unnecessary expenses. Instead of solely focusing on cutting costs, we prioritized increasing our income.

The Power of Budgeting

Budgeting gave us a game plan, replacing anxiety with a sense of control. We no longer held our breath, hoping everything would add up. With our meticulous Excel spreadsheet, we could sleep soundly, knowing we were managing our finances effectively.

As freelancers, we may face unique challenges, but with the right tools and mindset, we can thrive. By taking control of our finances, we can pursue our passions without sacrificing our financial well-being.