Finances don’t have to be a roller coaster.
Freelance income is like riding a roller coaster. Sometimes, you might even feel like you’re blindfolded and unsure of what’s coming next. You might get a new contract that fuels your income for months. Or you might have a sharp drop that makes you question why you ever started freelancing in the first place.
Unless you work with very long-term, retainer clients, stable income is not the experience of most freelancers. But the income variations don’t have to be a source of stress. With the right financial systems, you don’t have to feel like the roller coaster will make you throw up.
Here are a few days to keep your freelance finances even-keel — even when your income varies.
Set aside as much money as possible
Most of my career has been spent in the banking industry. I spent six years at an actual bank, followed by fifteen years as a fintech before becoming a fintech writer. As I launched my business, I benefited from such a strong financial background — but I know not everyone has had access to the same information.
From Day 1, I set up a system of “paying myself”: all client income was deposited into my business’s checking account. I…