When you choose to work as a freelancer, you deviate from a traditional 9-to-5 job and decide to become your own boss and enjoy greater flexibility and freedom. While this has many perks, freelancing means you don’t have consistent salary slips coming your way. Hence, it makes sense to explore some creative ways to save money so that you can plan your future and prepare for rainy days easily.
Through the course of this article, we will show you how to save money each month. However, remember that saving money as a freelancer requires a great amount of discipline. This is simply because, as a freelancer, your schedule changes every week. Unpredictable deadlines always keep you on your toes. And with a fluctuating income, it becomes a little tough to cap a definite savings amount. So, here are a few tips on how to save money that will help.
• Track your time
• Keep your expenses in check
• Maintain a separate bank account
• Use estimates for saving goals
Track your Time
The number one tool that should be on every freelancer’s list is time tracking software. You have to know where you are spending your precious time in order to control the consequences of your efforts.
Once you start tracking how much time you are spending on each project, and sub tasks, you will figure out how to save money on everything. So, keep everything you do on a clock. Don’t take any activity for granted. Establish a time tracking setup that works for you.
Keep your expenses in check
Once you start tracking your time, you are now ready to start tracking your expenses. Business expense tracking is a great way to maximize profits. Many freelancers struggle with filing expenses because of the sheer volume of receipts they receive. And sometimes, they forget to file for expenses. To be honest, when you are juggling with multiple clients, it is hard to keep a track of expenses.
Luckily, any business expense tracking software will allow you to monitor your expenditure on a daily basis. It will segregate your expenses and allow you to build a wholesome, progressive spending habit.
Every week, you will be able to see what you are spending on and what some of those recurring subscriptions that you are paying for are. Business expense tracking will help you save money right from the get go.
Maintain a separate bank account
Having a business account that is separate from your personal account is one of the top tips on how to save money. That’s simply because it is easy to spend more than necessary from your personal account. But your business account can exist as a separate entity that will not be prone to indulgence.
You can set a monthly limit on the outgoing funds from your business account towards your personal account, to automate money saving. Moreover, you can create a savings account. That is one of the more creative ways to save money. Create a virtual piggy bank of sorts, which is only for incoming payments.
Also Read: Money Managing Tips for Small Businesses
Use estimates for saving goals
If you have any decent invoicing software or a good enough method to make estimates for every project, it will definitely help you save money. After all, every project requires you to put in a number of hours, and bear some expenses. At the end of the project, whatever amount you will be paid, a percentage of it can be contributed to your monthly saving goals.
As a freelancer, you need to establish weekly or monthly saving goals, depending on your pay grade and cycle. No matter what, work towards these goals and use business expense tracking software to make the process simple.
So, keep these creative ways to save money handy when you gear up to take on the freelancing world. Being a little conscious about expenses and embracing technology to monitor your cash flow can help you more than you think.