Part of being a freelancer means dealing with unpredictable income. Managing finances for freelancers requires close management. But, what if I told you there’s a way to shift from unpredictable income to more steady income that you can count on? Would you believe me?
I’ve personally put these tips into practice and shared them with hundreds of freelancers just like you. I can promise you that it works. The best part….it’s extremely simple.
My secret to managing finances:
- Reduce your recurring expenses (personal and business related)
- Increase your recurring income
If you can reduce your recurring monthly expenses while simultaneously increasing your recurring income, the portion left over in the middle continues to grow and that is your profit. If you’re paying out less and taking in more, you can become incredibly profitable as a business.
It may sound basic, but if 30%- 40% of your income is made up of recurring revenue and you’re simultaneously reducing monthly expenses, before you know it, you’ll be able to pay yourself each month just from the recurring revenue portion generated by your business. Not sure where you start? A subscription service is a great way to build recurring revenue.
One of the added benefits that I personally love about this concept is how much lowering my personal expenses greatly reduces the pressure I feel each month to generate enough sales just to get by and pay my bills.
Did you catch that?
Let me say it a different way…If you can control your personal budget, the money you generate from recurring revenue, alone, could eventually pay your salary.
How would that change your world?
Let’s take a moment to just imagine how this could positively impact how you feel about your business on a daily basis. If you were no longer worried about finances and making ends meet, would you continue to take on clients who are difficult? Would you take on clients who aren’t a good fit? What if you had more peace in your life? Would you find more enjoyment and fulfillment in your day? How would this change the way you approach sales for your business? How would it change relationships in your life?
Lowering the pressure can, undoubtedly, lead to better decision making for your business and will ultimately increase your personal contentment in your personal life. And not only is managing your finances creating freedom, but recurring revenue really is the freelancer’s best friend.
Financial Management is Not a Lofty Dream
Now for those of you who are thinking this is a pipe dream, I promise you it’s not. This requires discipline and work to build your maintenance clientele, but as you build it one client at a time, you will
This article was written by Nathan Ingram and originally published on WordPress News and Updates from iThemes – iThemes.