How to Manage Your Freelancing Income

Savings for you Future

Managing your freelancing income will be difficult if you don’t know-how to do it. Most freelancers tend to spend their income buying unnecessary stuff, so they’ll end up without savings. The freelancers earn enough and so they must learn to manage it well otherwise, they will end up with nothing to get when they need it the most.

Here are some tips on how you will manage your freelancing income and avoid being  a “one day millionaire.”

1.) Separate your personal and business bank accounts

You need to separate your personal money to the money you get from your freelancing gig. If you’re only having one bank account for both, you’ll be confused and you can not track the flow (in and out) of your money. Another thing is for audit purposes. It will be a lot easier if your income is reflected well to your business account, not mixed  with your personal account.

2.) Track your income

Keeping in track with your income will make your budgeting easier. When you know how much you earned it will be easier for you to manage your finances. You can use an app to track your finance or you can list down everything on a notebook. In that way, you will be aware of the flow (cash in and out) of your finances.

3.) Set Up An Emergency Fund

An emergency fund is another priority, the same with your savings. Your emergency fund should be at least 3-6 months worth of your monthly income so that when you experience uncertainties, you will have an available fund to use. Having an emergency fund helps you especially when there’s a financial crisis that will happen in the business, you don’t need to borrow or take a loan and pay high interest rates in order to recover. 

4.) Get Insured

As a freelancer you are not entitled to free insurance coverage except for those who have generous clients. Insurance like Health Insurance Plans are expensive. However, because it is a necessity you don’t have  a choice but to buy for yourself.  When you fail to get insurance, you will be exposing your loved ones to financial risks. There are many insurance coverage in the market, just make sure you pick the right coverage for your insurance needs.

5.) Save For Retirement

Retirement plans are realistic initiatives for your future. As you grow older, your body will be weaker which means time will come that you will retire and you will not have income anymore. Retirement may seem optional to some, but it’s essential to everybody. The same with insurance coverage, retirement plans are your intangible assets where you pay now and enjoy the benefits in the future. There are lots of retirement plans available in the market, choices are pension plans, insurance coverage, Personal Equity Retirement Account (PERA),  investments and many others.

Conclusion

Managing your income affects your future. What you saved today, will be essential tomorrow. The tips being mentioned above are different options you can choose but, you can have all of them if you can because these tips are all important in our lives. Start saving now, as it will benefit you in the long run. Start in a small portion and eventually in the future, it will grow and you will be enjoying the benefits of it. 

Get guidance from the Filipino Virtual Assistance, if you need one today, we are here to help you succeed.

Different Fears Every Freelancer Is Facing

Fear is the worst enemy of going successful because when you are fearful, you will achieve nothing. Having fear is normal but, what is not normal is loving your fear and allowing it to stop you from doing freelancing.

Here are different types of fear and tips in facing your fears.

Journey of a Newbie Freelancer

1.) Fear Of Rejection

As a freelancer, fear of rejection is normal, you can not do anything to avoid it, what you can do is to use it for motivation. When you are a newbie, you easily feel discouraged and you want to quit easily, always remember that everything happens for a reason. Maybe you are rejected now because something better is waiting for you, you only need to wait.

2.) You’re Just A Newbie In Freelancing

Most of us are doubting ourselves due to lack of experience because we are still a newbie in freelancing. But think about those experts in freelancing, are they experts the moment they take freelancing?

There’s no such as experts when you start freelancing because freelancing is a lifetime learning process, they started as a newbie, they conquer their fear, then they overcome all those challenges even though it was hard. They become successful because of the experiences and learning they got.

3.) Overthinking about your income will not suffice in paying your bills

All of us have bills to pay that is why we need to work hard in order to earn enough for the bills. Especially if you are the breadwinner of the family, you will worry when things are falling apart, then you get stressed because of overthinking. The result of overthinking is bad, and it will not be healthy for you. Instead of worrying, manage your finances well and always allocate funds for emergencies for you to be prepared in whatever future occurrences that will come to you.

4.) What If Clients Don’t Like My Work?

It is normal to feel nervous when we get our first client. There are instances wherein the client doesn’t like your output, maybe because you don’t meet the clients standard or the clients is just high standard. Don’t worry, you’re just starting your career and eventually you will learn and improve your skills in the future.

5.) Just Do It

Let’s face it, if you will not do anything to make your dreams in freelancing come true,nothing will happen in your career. The dream will just remain a dream if you will not test the water, and you will be left behind. Start in your dreams by taking small steps, one at a time and then you will improve eventually. Freelancing is a long learning process and so do not expect to be successful overnight. Thrive hard and be positive always, this is the best attitude that will bring your career up.

Conclusion

Each of us have our own fears in life and because we are the in-charge of our lives, we need to overcome it. We can overcome those by allowing yourself to take little steps to conquer that fear.

Conquering those fears is a great fulfillment and we will be proud of ourselves in the future. For you to be successful in freelancing, be ready, start now and face your fear!

Get trained and certified

“Why with the Filipino Virtual Assistance online academy?” you may ask. The Filipino Virtual Assistance offers online job courses to freelancers, virtual assistance services to brands and businesses and franchising opportunities. Our mission is empowering families, one freelancer, at a time. Our number goal is YOUR success.

When you enroll with an FVA course, it also comes with:

A FREE apprenticeship so you can get an online freelancing experience (most clients look for this before hiring)

Hiring opportunities through our FVA Services where potential clients can come and hire you

You will also have lifetime support from the FVA Family and a Coach guiding you all throughout the process.