With the rate at which inflation is running rampant and prices meandering in the face of global energy deficits and supply chain difficulties, it is no doubt that there will be price rises.
As a freelancer, how do you deal with this change? One of the best and lasting solutions to keep your pocket running amid an inflation crisis is to learn money-saving hacks for freelancers that have been employed by other freelancers who have one time found themselves in the same situation
With 28% of Americans working as a freelancer and others managing one small business or the other, dealing with fluctuating payments and temporary contracts has appeared to be a problem. This means it is challenging for these freelancers to plan due to the erratic nature of the job, but they can take measures to set themselves up for long-term financial success.
In this guide, you will learn about the 15 money-saving hacks for freelancers you can adopt to keep your ball rolling amid an inflation crisis.
15 Money-Saving Hacks For Freelancers
1. Set Long-Term Financial Goals
One of the money-saving hacks for freelancers you must not miss out on is to take the time to define your long-term goals. This will help keep you motivated when job prospects aren’t coming through immediately.
There are ways to set yourself up for long-term financial accomplishment even when you’re only picking up short-term projects and jobs.
Setting long-term financial goals like retiring earlier, having financial independence, and lots more can help you save a lot of money as you work as a freelancer.
2. Work From Home When Possible
With freelancing, you can work from home. Working outside of your home or getting an office, studio, or other working space depends on the nature of your freelance business. But you can save money by working from the comfort of your home.
Repurpose your bedroom or a shared space in your house for work to help to cut costs on rent and utilities.
3. Cut The Cost Of Subscriptions
Subscribing to online services relating to work can add up over time, and most of the time, you continue to pay for services you don’t use.
To save yourself some bucks, check through all your subscriptions for any you’re not using, and cancel them. With the subscriptions, you want to keep, make sure you minimize your costs as much as possible. Pay for work-related apps yearly rather than monthly as there are cost benefits to doing that.
4. Save And Invest Right
Another money-saving hack for freelancers and a key to financial success is saving and investing right, either to the 401K or by buying crypto. When your next project comes through is not guaranteed, it’s essential to have a little bit of money put away in case things get slow.
Savings accounts can help freelancers deflect dipping into their retirement funds or having to borrow from friends and family members.
5. Manage Business Expenses
You can save money as a freelancer by managing your business expenses more efficiently. Take the time to address your costs to help with tax preparation, setting up a retirement account, and meeting other financial goals.
Also, Avoid Extravagant Spending on Tech. You don’t need the latest tech to be a successful freelancer; you should avoid splurging on getting the latest, most expensive tech when inexpensive alternatives are available.
6. Take Note Of Your Time
Another interesting money-saving hack for freelancers is tracking the time on your clients’ projects. You must know how much time you’re spending and which time needs to be billed.
You risk losing money or undercharging a project when you don’t take note of every second spent on working.
7. Open A Business Bank Account
One of the ways you can save money is to open a business bank account. One advantage of this is; that it helps you keep track of your business incomings and outgoings. It will also help track how much you are spending on your business and how much you are making in return.
You can request a low-interest business credit card to make it easier to manage your business income and payments.
8. Take Advantage Of Discounts
If you feel the need to buy something for your business, you can try to find a discount or use coupons, if possible, to cut down the cost. This can help you save some money to put into other aspects of your business.
You may also find the need to shop around and compare prices as well to find the least possible prices without compromising on quality.
9. Cut Down Utility Bills
If your business hasn’t been developed to pay your utility bills conveniently, you may have to look toward cutting down costs. If you’ve been with the same electricity company for years, you may find a better job with some other companies, especially those companies that offer discounts for new clients.
Cutting down your utility bills will help you invest that extra money in your business.
10. Have Your Meal Or Coffee At Home
It’s great to go out for a meal or a cup of coffee, but you can keep costs low by eating and having coffee at home since you are on a budget. Learn to cut costs wherever feasible but don’t go overboard.
11. Embrace Annual Purchase And Subscription
Though it seems better and cheaper to pay for a service or product monthly, you may want to look into buying annually instead as it reduces the cost. You can save up to hundreds of pounds simply by paying yearly.
More so, more significant purchases will mean more savings because you get bigger discounts, so try to purchase the product or service annually.
12. Bargain On Better Rates
However, you shouldn’t set a rate so low that you lose out while working tirelessly. Make sure that you’re charging a reasonable rate by considering your living costs, monthly expenses, subscriptions and taxes. This will allow you to save more money which you can put into a savings account or invest in your business.
13. Work On Long-Term Projects
Try to choose long-term projects for better income sources. This is because one-time projects take a shorter time and are not as profitable as working on long-term projects.
Taking long-term projects will help you to invest money back into the business or to save for the future.
14. Use A Bookkeeping Tool
To stay on top of all transactions, expenses, and taxes, use accounting software like FreeAgent. You can also get real-time information to help you inform your decisions. You can access this information at any time of day and night and from any device, be it your phone, tablet, or computer.
This hack will help you manage your business and check receipts, graphs, invoices, and quotes.
15. Pay Taxes On Time
Paying your taxes in time will avoid paying extra fees and penalties, and you can save money. This will also give you peace of mind since you don’t have to worry about anyone contacting you. You will also feel more in control of your business and finances when you do this.
Freelancing work can be blistering, but reasonable financial control can help you set yourself up for success.
With the rate of price rises, money-saving hacks for freelancers help to deal with managing your finances so as not to fall short of finance until your next project is guaranteed.
Freelancers should understand the significance of setting themselves up financially. To prepare themselves better to take on projects and positions that will bring them closer to their long-term goals.
As you take these 15 money-saving hacks for freelancers steps, you’ll know how to make the small changes that will help you achieve financial independence in the freelancing business
Onifade Azeez is an SEO writer at wealthgist.com, a leading Personal Finance website. He has 10 years of experience in Digital Marketing and Search Engine Optimization. You can follow him on his social handles like Pinterest, Facebook, and About.