Planning A Regular Income As A Freelancer
February 12th, 2010 by ryan
As a freelancer, you face many situations that employees don’t have to worry about. One of the biggest challenges is planning a regular paycheck. This challenge can be a cause of stress for many freelancers, as well as a fear that holds many others from pursuing life as a freelancer.
But it’s not all bad! You can calculate what kind of an income you’ll need to make in order to make ends meet. Doing this exercise before you take the plunge will help you gauge the kind of risk you make be getting yourself in to.
There is a solution to this problem, and it can be implemented into your business right away. You simply need to plan ahead. First of all, decide what amount you need to earn each week to make ends meet.
Once you know how much you need to earn each week, take that amount and multiply it by 55. Then, take that number and divide it by 52. This is the amount you need to earn each week to cover your expenses, plus a 2 week vacation and 5 sick days.
Your best bet is to set up a separate checking account and deposit your earnings into it. Each week, you simply take out the amount of your paycheck – the amount you need to make ends meet.
Remember, your goal is to be earning more than that. Keep the extra in the bank and only take out the amount you need. That way, the extra money will be there when you want to go on your vacation or take a day off when you are sick.
Invotrak can help you with this task, as it will allow you to keep track of your income and the amount you are earning per hour. If you find that you are not earning enough to meet your goals, you will know that you need to find more clients or increase your hourly rate in order to meet your weekly goals.
By taking some time to plan ahead, you will eliminate the stress and fear of having an unstable income. This will help you enjoy the freelance life even more.
