Top Tips to Manage Your Money as a Freelancer During Low Income Months
If you’re a freelancer then you know how important it is to manage your money, there are high and low-income months and you eventually see them as inevitability. The smart move would be to plan for them but let’s just say you didn’t plan for these months and now you must live on a low income, well never fear for I am here to inform you of these top ten tips to manage your money!
Make sure you shop for what you need and not what you want
When you go shopping for groceries you may grab something small that you don’t need, because you feel like it. If this low-income period goes on for more than a month then you will need to save up as much money as possible and a bunch of small luxury purchases can take a good chunk out of your money.
Plan to buy what you need and nothing more, set aside a budget for it and no matter the temptation to cross it by even one more rupee, don’t. Will power is key, and money is not an expendable luxury now.
Used items are not as bad as you think
During these months you’ll want to save money so used items can be life savers, and they don’t have to be used for months in fact they don’t even have to be used at all! Open box items are a big money saver, they’re practically brand new but since their packaging was opened they can’t be sold as new items and are thus sold at much lower prices even though you essentially get the same product.
Credit Cards are your enemies
When you’re pulling in less income then keep as far away from credit cards as possible, according to www.cfinancialfreedom.com “When you use a credit card, studies have shown that you spend 12% more on average because using plastic is such a smooth and frictionless way to spend money.” Also, Dave Ramsey writes in his The Money Answer Book “When you pay in cash, you can “feel” the money leaving you. This is not true with credit cards. Flipping a card up on a counter registers nothing emotionally. If you use plastic instead of cash, you will spend 12 percent to 18 percent more. This is money you could have saved.” When it comes to spending money on a budget credit cards are a slippery slope that will send you falling.
Cut down on the luxury
Every now and then you may want to eat out, or go on a quick cruise in your car but you must realise that these are the things you can’t afford right now. Money is limited and wasting gas or buying food, that is four times the price that it should be, is not something you can afford. Cook your own food, use your car as little as possible to conserve gas and save up that money, who knows when it’ll come in handy?
Start job hunting
If a freelance job doesn’t suffice your needs, then it’s about time you began sending out your resume out and get yourself a part time job if you can’t manage work and as a full timer.
Get rid of unnecessary belongings
If you’re falling short of money and don’t have any other option, start selling. There are probably plenty of things around the house you don’t use anymore, perhaps old sports equipment or clothes that don’t fit you anymore. If you’re a hoarder all the better, you’ll have plenty of items that you can sell off online to generate additional revenue and get you through a tough time.
I hope these tips help you during the months when you need to manage your money a bit more narrowly, the best way to get past times like these is to plan ahead for them but in case you didn’t these tips are for you.