Define finance. It is the management of revenues that affects the public, within the transactions of money, dealing in the fields of investment and banking. There you have it! Now that you know the definition of finance, you can now start your way on how to create and manage your freelance budget. Let’s get started!
To create a freelance budget, you MUST figure out your BILLS every month. (1) So make a list! You may ask, how do I budget when my freelance jobs are irregular each week? Well, it’s based off your expenses!
Budgeting isn’t very fun, but it will benefit you and your business for future work. For instance, you don’t want to be that person who over spends their limits every month into debt do you? Do you know how much anxiety and stress that can be put onto yourself? But it makes it even harder if you are trying to support a family relying on a decent income based from month to month sales correct?
Managing your freelance budget has vital importance to you… (2) Calculate how much of your freelance business you NEED to sell each week. Then set your goal bar a little higher… Challenge yourself! Plan to make more money then what you NEED. This way you are not just “squeezing by” or “barely making it through the end of the month.” In other words, set your budget up for success!
If your expenses every month adds up to more than what you are making, maybe you should step back and (3) cut BACK expenses that are “excess” for a while… Just until you can get your feet back on your feet. You know you’re not having any fun when you’re chasing your tail in the same circle over and over again till you fall over right? Let’s be responsible for our actions…
Being in the freelancing business is not the easiest job to do, unless you are good at what you do, your driven, and you know how to be responsible in managing your budget. Take your budgeting month to month, just like your business, and (4) work on improving your budgeting skills till you have them down to a “T.” Maybe you can experience cutting back for a while till you can figure out your limits. Once you are completely secure in your managing skills, your ability to save/earn more of a cash flow month to month can be LIMITLESS! Ready, set, START your budget!