As a freelance writer, managing money can be a complex and challenging task. However, through the ups and downs of freelance life, I have learned valuable lessons about money management.
From creating a budget to invoicing clients and managing my expenses, my journey as a freelance writer has taught me a lot.
In this article, I will share nine money lessons I have learned from my experience as a freelance writer.
Hopefully, these lessons will help you make smart financial decisions, minimize money issues, and achieve your financial goals.
Here we go!
One of the realities of freelance writing is that your income often fluctuates, making it essential to budget your earnings and expenses in order to stay afloat.
A budget allows you to keep track of your income and expenses and ensures that you are spending within your means. Besides, a budget helps you prioritize your spending, saves you from overspending, and gives you a clear picture of your financial situation.
By creating a budget and sticking to it, you can avoid financial stress and ensure that you have enough money to cover your bills and save for the future.
Here’s how to create a budget:
Read Also: The Ultimate Personal Budgeting Guide.
As freelance writers, we don’t have the same level of job security as traditional employees. It’s thus important to save for the future and have an emergency fund in case you experience a downturn in work.
Having a solid emergency fund can provide peace of mind and financial security. By saving a portion of your income each month, you can build a nest egg that can be used in case of a financial emergency or to achieve long-term financial goals.
In addition to a rainy day fund, it's also important to consider other savings and investment options, such as a retirement account or a savings account for future expenses, like a down payment on a home or a child's education.
By saving for the future, you are investing in your financial security and ensuring that you have the funds you need when you need them.
Remember, the earlier you start saving, the more time your money has to grow and the more secure your financial future will be. So, commit to saving for the future and start setting aside a portion of your income each month for this purpose. Experts recommend setting aside 3-6 months of your monthly expenses in an emergency fund.
Read Also: How to Plan for Retirement While in Your 30s.
Having insurance helps mitigate financial risks and provides peace of mind. Since most of the time your employer won’t pay your health insurance, you’ll have to pay it yourself. You’ll also have to plan for your retirement
So research and compare insurance options to determine the best coverage for your specific needs. When looking for an insurance company, here’s what to keep in mind:
Read Also: Insurance, a True Life Saver.
The phrase "Your network is your net worth" highlights the idea that the strength of your relationships can directly impact your financial success as a freelance writer.
As a freelance writer, building a strong network can lead to new opportunities and increased income.
Here are more benefits of networking as a freelance writer.
Also Read: 7 Financial Concepts Every Kenyan Should Know.
As a freelance writer, I have learned that depending on a single source of income is a risky affair. Some clients disappear without warning and there’s nothing you can do.
As such. I’ve learned to diversify my income streams to increase financial stability. Here are more reasons why diversifying your income is important:
Reliable income: Having multiple sources of income can provide a more reliable stream of income, especially during slow periods.
Opportunity for growth: Diversifying your income can also provide opportunities for growth and expansion, as well as the chance to explore new areas of writing.
Increased financial security: With a diversified income, you have a better chance of weathering economic downturns and other financial challenges.
So, how can you diversify your income as a freelance writer?
Read Also: Why You Should Diversify Your Income.
Financial planning is important for ensuring your financial stability. So, set a realistic financial plan to cater to all your needs.
Your plan can include:
Read Also: A Guide to Planning Your Future.
As a freelancer, you’re paid for your skills. The more skills you have the better. Here’s why.
So, how can you further your education as a freelance writer?
Read Also: 10 Marketable Short Courses In Kenya for 2023.
Self-discipline is a critical factor for success as a freelance writer. The key thing is to consider every day as a work day. Otherwise, you’ll lose your job.
Here are a few lessons on self-discipline I’ve learned.
By developing self-discipline you can increase productivity, deliver quality work, and achieve success.
Lastly, it's important to understand and value your worth as a freelancer to avoid undercharging for your services. Here are a few steps to help you determine your self-worth as a freelancer:
By understanding your self-worth and charging fair rates, you can increase your income, build a reputation as a professional, and achieve financial stability.
In sum. freelance writing has taught me valuable lessons not just in terms of improving my writing skills, but also in terms of managing my finances and running a successful business.
From budgeting and invoicing to diversifying income streams, I have learned important financial lessons.
Additionally, the constant challenge of client acquisition and risk management has helped me develop entrepreneurial skills and resilience. Overall, my experience as a freelance writer has been a valuable lesson in both personal and professional development.