Going freelance is a great way to take charge of your career and carve out your own path in life. Rather than working for a boss and being told what to do each day, you have complete control over every single aspect of your work.
You can choose which days to work or take a holiday, and you don’t have to stick to the traditional nine-to five schedule. Wake up at midday and work late into the night if that’s what you prefer. There is no micromanaging boss breathing down your neck 24/7 or sitting around in pointless meetings counting down the seconds until home time.
And the best part – you can work from anywhere you like in the world. For many self-employed people, all you need is a laptop, a phone and a good WiFi connection and you could be running your business from either the comfort of your own bed or a beach in Thailand. You have the entire planet to choose from.
But despite all the positives, being a freelancer is not necessarily an easy ride. You still have to work hard at your chosen career, striving to find clients, produce good quality work, and establish an appropriate life balance. You have the potential to make a great deal of money, as you are not limited by a fixed salary. However, it may take some time to establish yourself before you are able to rake in the big bucks.
To help you benefit financially from your freelance journey, here are three ways to save money when you’re self-employed.
Organize your finances
When you work a traditional job, managing your money is a lot easier. You earn the same amount each month, and this figure is paid directly into your bank account with reductions from tax and pensions already calculated. But as a freelancer, things are much more complicated. You have to work out and submit your own taxes, keeping full accounts of all invoices and expenses. If you’re not a financial expert, this can be difficult and you risk making costly mistakes. Make sure you keep track of every single transaction, bill, and expense using a spreadsheet or a bookkeeping program. This will ensure all your figures are correct and you won’t have to play catch up at the end of the tax year.
Hire an accountant
It is a good idea to hire an accountant to help you with your bookkeeping. They will be able to organize all of your finances, prevent any errors, and also identify any areas where you can reduce your tax bill or expenses. Although a good accountant can be expensive, the best ones will always save you more money than they cost.
Take out insurance
It doesn’t matter what line of work you are in, if something goes wrong, then you have to cover the cost yourself. Perhaps your equipment is stolen, you lose some sensitive client data, or a member of the public is injured as a result of your work. The last thing you need is to fork out a substantial amount of money on replacement technology or solicitors fees. Taking out adequate insurance should be one of the first things you do to protect your business from any financial loss.