Quitting a full time job to go at it alone can be daunting, especially when you first start out. Here are some tips for saving money in those early days before you find your feet.
This is quite common for office workers who grab their breakfast on their way to work in the nearest cafe and go out for lunch with coworkers. While it is not terribly harmful when you have a steady amount of money flowing into your bank account each month, it may become a money sucking habit when you freelance. The thing is that you can get pretty lonely when working from home all week. The office gives you an opportunity to be with people, cooperate in teams, chat and laugh. Some poeple need it and enjoy working in the office, some would die for a separate room. Though even the biggest introvert do not want to feel lonely! That’s why eating out and commuting expenses may go up unexpectedly!
TIP: Try to restrain it to dining out twice a week at most.
Expenses incurred for spending more time at home will increase inevitably as you will work all days chained to your desk and your computers you will spend more money for light and electricity.
TIP: Try to be mindful of what lights are turned on. Keep only the ones that you need to work comfortably.
TIP2: Save on internet by working from a nice cafe nearby
Embrace the sharing economy
Use sharing economy services. Never tried that? For a short route, taking an Uber car might be a better idea, than ordering a taxi. When you plan to travel far away from and don’t mind to share this time with strangers go for Liftshare some other carpooling website that operates in your country. Next, if you need to send a parcel, some furniture or you need a removal company try an online marketplace for transport services. You can easily get quotes there, and save a few quid if the transport provider you choose is already making the same journey with another delivery to drop off on the way.
Never stop learning
You can only grow your business and continue to provide high-quality service if you educate yourself and stay up to date on the field you specialise in. What you can actually do, not to let the money go too easily is to use online education platforms. Many Universities provides online lectures for free! You can study at MIT, University of Virginia, University of London – just search for videos on Coursera or tutorials on Envato.
Buy only the things you need
Seriosuly, you will not need a brand new laptop or a phone to kick-start your business from home – you can borrow it, buy it on eBay or use your old devices. Shopping does not concern only electronic devices. You might as well be tempted to buy some fancy office stuff, redecorate etc. Well, first achieve your revenue goals, then reward yourself with a new desk or elegant, glam accent chair.
Don’t quit your current job straight away
It may be tough for a couple of months to carry on many projects simultaneously, but it will pay off. You will not be stressed by not having enough money to survive. How productive and goal-orientated can you really be when you stress out about basic things like, paying monthly rent or buying a lunch?
But if you are looking to quit your job, I recommend Ellory Wells’ Exit Strategy course
Diversify your income sources
Just starting your freelance career? If you have just one type of product or service to sell, try to think of a side job – not too time-consuming and difficult, try online portals like Fiverr, People Per Hour, ODesk etc. where you can make money on providing translation, simple graphics, even your voice samples or likes. If your business is going through a tough time it can serve as your financial cushion
List your monthly expenses, divide into categories and assign a certain amount of money to each category. Budgeting will help you keep track of your spendings. Especially in times of ubiquitous electronic payments, it’s easy to miss the moment when your account balance is screaming to you in red.
What works for you when it comes to budgeting and saving money as a freelancer?