I have already posted about my goals for 2014, but I also wanted to touch upon money management goals this week. Especially for beginner freelancers, money management can be difficult.
Many wonder if they should quit their day jobs to work full time, but it may be better to hold onto that day job until you have at least 3 to 6 months of pay saved up. Ideally, this is the way to go.
It is important to think about all aspects of your finances:
- If you have a day job, use that income to pay for your immediate needs. Use your freelance income as savings, putting it away for later use. Do not touch this money, as it will be what you need to survive on once you let go of your day job. Consider a credit union to hold your savings in.
- Save money wherever possible, putting away any extra money from your day job as well. Cut back on your use of utilities. Consider a smaller home if the children have moved on. And a car cheaper on gas, that wont cost a lot in repairs. Use coupons when possible, as well as sales.
- Get back to basics. If you are a freelance writer, you may lead a pretty sedentary life. Gardening will not only provide you with much needed exercise, it will afford you a way to save money on food. This money could be put into you account at the credit union for use later.
- Start a retirement fund. Every little bit will help. Look into different ways of doing this.
- Start an emergency fund. Who knows when an ice storm will hit and you will be left without power for a week, or when someone will end up in the hospital. Or even when your car will break down. Be prepared.
Try to stay ahead by those 3 to 6 months mentioned earlier. If you have all these efforts in place, and you have no real debts such as credit cards or student loans, you are doing a great job of managing your money.
How will you go about managing your finances this year?
Shannon L. Buck
Shannon L. Buck
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