How To Manage Your Finances As A Freelancer

Freelancing is a totally different experience from being a full-time employee. Unlike being on a fixed salary, it does not guarantee you a specific monthly salary. Sometimes, you will make a lot, and other times, you wouldn’t. However, if you manage your finances properly, those rainy days can be avoided or at the least turned into drizzly days. Below are five helpful tips on managing your finances as a freelancer in 2022.

1) Separate your personal account from your business account

You may not see the need to do this, especially with how inconvenient trips to the bank can be. I am here to tell you that having separate accounts will allow you to track your income and expenses with ease. This applies even if your salary comes from your personal account. Your records will be clearer and there will be less to no confusion.

2) Record your income and expenses

It is important that you record each sale and each expense. Keeping track of sales and expenses will help you know where your money is going and where it is also coming from. You can easily do so on dillali with both the income and expense features. The income feature lets you create quotations, invoices, and receipts for quick sales, and expenses let you record what you have spent. It is as important to record your expenses as it is to record your sales because this will help you have a clearer insight into your earnings.

3) Keep track of your finance trends

Compare your records monthly, quarterly, and annually. Reviewing your profit and losses will help you realign your business, and let you know if you need to set new prices or make other changes that will help you earn more. You can do so by going through your records. If you still use a book or excel in 2022, I have great news for you. Dillali compiles all the information you record and summarizes it in numbers, percentages, and visuals on your dashboard. Again, this app is not only amazing, it is free!

4) Save for rainy days

Like I said, earning as a freelancer can be tricky because, on some days, you’ve got the bag. On some other occasions, the bag avoids you. Try to save when you earn a lot. Yes, rewarding yourself is important and you can still continue to do so on a budget while saving.

5) Follow up on late payments

This can be tricky for most people. Not a lot of people are comfortable with constantly disturbing their debtors for money. Please, do not be that person! You worked hard for your money, so remind your clients to pay. With dillali’s invoicing feature, you are not only limited to editing the payment of your invoice status, but you can send payment reminders over and over again till that client gets the message and pays up.

If you are interested in career development, you will love this other article I wrote about resources that will boost your productivity as a freelancer. I hope that you enjoyed this article as much as I enjoyed writing it for you. Join over 10,000 businesses and download the Dillali App from the Google Playstore and Appstore to start managing your finances today!

‍