Freelancing may be in vogue, but no one ever said it was easy. In fact, becoming a successful freelancer can be quite difficult. After all, freelancers need to play a number of roles in order to sell their services, maintain good relations with other business owners, and deliver quality products time after time. Additionally, freelancers also have to manage both their personal and professional finances. Thankfully, we’re here to help with that today. Here are our top four investments tips for freelancers –– trust us, you’ll want to keep these handy:
Set Aside a Large Emergency Fund
Freelancing is a potentially lucrative, but volatile, profession. (This is a theme we’ll revisit several times.) As such, it’s imperative that freelancers prepare themselves for barren periods in which they struggle to find work. Unlike “traditional” employees, who can more or less count on a paycheck every couple of weeks, freelancers only get paid when they’re working. To combat financial uncertainty, freelancers should always set aside a sizeable emergency fund that they can use to cover basic expenses like groceries, rent, and utilities.
Separate Personal & Professional Finances
In many instances, freelancers act independently. That is, they don’t answer to a boss and they don’t have any employees either. Unfortunately, this means that it can be very easy to mix personal and professional finances. After all, buying something for yourself and buying something for your company might seem like one in the same. They aren’t, though. For tax and credit purposes, maintain a strong distinction between your personal expenses and your professional ones.
Purchase the Tools You Need
Freelancers require all sorts of tools to succeed. Some are relatively basic, like a laptop, headset, or WiFi router. Others, though, are specific to an industry or assignment. For instance, a freelance writer may consider investing in an app that can help them refine their style and grammar. Or, a freelancer working with a company like Retail Management Solutions may find it beneficial to purchase an online resource to understand their product better. By investing in tools and resources like these, you can bolster the quality of your deliverables and enhance your reputation.
Play the Long Game
As we’ve mentioned above, being a freelancer means dealing with uncertainty. Given that fact, savvy freelancers tend to make long-term investments that will produce dividends over many years. Furthermore, conservative investments can, at the very least, provide some stability should other income sources flounder.
The most successful freelancers aren’t always the best writers, designers, or consultants, but rather, are the people who best understand how to maximize their potential and their capital. If you’re looking to become a freelancer, then don’t ever discount the financial aspect of this burgeoning professional field.