Valuable Moneysaving Tips for the Smart Freelance Designer

September 1st, 2012 Posted in project management, Various

Being a freelancer is challenging, VERY challenging. In a way you have to know how to do “everything” at once, and if you’re not planning well it can all be gone within just weeks. In this article we’ll give some quick tips related to the economy part of it. These tips can help you save some money and help you keeping your business alive. Many freelancers are some of the best at their field, but generally not that good with economy. This has stopped many from being successful. But you can learn some tips that can help you out a lot in the process.

Image by Jakub Krechowicz

We hope you will find these helpful!

A good overview

Take the extra hour or two to make a good overview of the money going in and out every month. Not only do you to some degree need this in most countries for your taxes, but it’ll also help your business a lot. Instead of getting any unexpected “surprises” at the end of the year, keeping track monthly is important.

Where can you save costs?

Once you have your overview it’s easier to contact insurance companies, phone and Internet companies and check other costs to see if there are any better options available. My own experience has shown me that there can be hundreds, maybe even thousands of dollars to save from looking through your options.

Pay your bills (on time)

Image by Svilen Milev

Paying your bills when you’re supposed to pay them, will actually both save you money and give you a good relationship to those involved. Most businesses take extra fees and interest when you’re paying too late, and if you ever need a credit in any special situation – a clean record will be very helpful. Once you’re starting to wait with a bill or two, you’ll quickly be in trouble.

Send out your invoices (on time)

Another mistake we often do, is to wait too long before sending out invoices. This can lead to late payments, or just the fact that we don’t have the money when we need it. Make a monthly routine to send them out regularly. This way you establish a steady cash flow in to your business, and it is also then easier to plan better.

Avoid credits and loans if possible

At some point you’ll struggle financially. Even if everything is going really well at the moment, never forget that there will most likely be harder times around a corner. Getting a loan/credit can be very tempting, but never forget that there’s interest and everything (and then some) will need to be paid back. If you can avoid it, that’s the best. It’s always smart to have some money before you go freelancing, plus saving some of your income from when business is good.

Do it yourself

Do everything you can do yourself. Make your own website, your own business cards and so on. Many unnecessary costs can be avoided, and you’ll be surprised by how much you actually can save on this.

Conclusion

Saving money as a freelancer can be done in many ways. The most important is to keep an eye on your finances at all times. Look for possibilities and not limitations.
Good luck!

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