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Managing and Saving Money as a Freelancer
Managing and Saving Money as a Freelancer

Managing and Saving Money as a Freelancer

Fear of going broke is a familiar concept in the freelancing world.

Times where you have more clients and money than you know what to do with, followed shortly by a time when you don’t even know what a client looks like anymore.

This one of the downsides you have to accept as a freelancer in order to enjoy the perks. But, it doesn’t mean that your times of famine actually make you starve.

So, how can you successfully manage and save money as a freelancer?

Create an Emergency Fund

Times of famine are bad, but they become worse if you don’t have a backup. An emergency fund can be the key to keeping food on the table even when your clients have vanished.

And even if this never happens, lucky you, it’s still nice to have security on sick days, holidays and other small emergencies. You never know what is around the corner, so preparing for anything is the key to a successful freelance career.

Business Account

As well as having an emergency fund, having an account solely dedicated to your freelancing money is a smart way to keep business and pleasure separate. This way you can pay yourself a salary each month and still have money left over for other business necessities.

After all, it’s never a good feeling to accidentally spend money that should have gone to your taxes!

Cut the Extra Costs

Sure, working on your kitchen table isn’t glamorous. But it is cheap. Cutting as many overhead costs as you can whilst freelancing is the best way to spend money, especially if you are participating in an office share of some kind.

Working from home cuts commuting costs, office rent and means you only have one set of utilities to pay at the end of each month.

So, if you’re tight for cash then simply make your freelancing efforts as home-based as possible!

Track Expenses

Work out where your money goes every month. We have all been there: logging into online banking only to wonder where all of our money has disappeared to. But, as a freelancer, this is a much more risky position to be in.

Keeping a dedicated spreadsheet to track where and when your money is being spent, while tedious, could actually end up saving you money. At the very least, it can put into perspective how expensive your daily chain store coffee is and make you cut back a little.

Insure Yourself

We all dread the idea of bad feedback. But, not every client will be happy with your work and some could even take it a step further. A lawsuit landing in your lap is the last thing you want to deal with on any day, but it’s made even worse when it puts your freelancer livelihood at stake.

However, if something like this does happen a secure freelancer insurance policy can mean the difference between a minor annoyance and bankruptcy. With such a big leap from one to the other, it pays to simply be insured.

Buy Within Your Means

Okay, so you need a computer to work. But, do you really need that top of the line model that is currently sat in your online shopping basket? Probably not.

Remember to always buy within your means as a freelancer. The budget computer may not look as slick, but it will get the job done and make your bank account feel less stressed.

Plus, you can always save for a better model down the line as your freelancing career – and subsequently your rates – progresses.


Do you find yourself wasting time on projects and clients that don’t pay much? To the extent that you’re not giving your best on the well-paying work? Then outsourcing a few projects may be the best solution for you.

Yes, you will lose out on a percentage of the profit (to pay for the work to be completed), but you could be spending the time more wisely elsewhere and making much more money as a result.

It’s a case of learning where to spend money in order to earn money. In this case, your one £40 blog post a month can be outsourced easily for £12 on your part and still leaves you with a tidy profit.


And there you have it! All the best ways to help make you feel less like a starving artist and more like a business person, at least once you get the hang of it. There’s always room for a little trial and error. But you will definitely be impressed by how much money you can save in the long term.

More on this matter: How to earn money as a freelancer – 10 Tips

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