Freelancers do you save some money?

Lynne Level 1

September 15, 2016, 2:31 pm

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Freelancers do you save some money?

I am just wondering how everyone else budgets and whether any of the freelancers here save some money for the possibility that some months might get rough financially?

Do you have a formula that you use for your business finances?

For example perhaps you put 20% profit back into your business, 20% into savings for a rainy day (or month) of freelancing and then pay yourself 60% of the profit?

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EliteWriter

I save up as much as I can. I like to save especially to finance any projects I want to do at home, and hopefully to go on holiday next year. General expenses that arise from day to day such as bills and shopping are obvious, and I try to save only for extra expenses or large purchases. I do not have any formula, but as a general rule of thumb I will try to save between 25% to 40% of what I earn, obviously provided that I make enough money in a given month. If I do not earn that much I will have to save less.

8 years ago

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Everett

I save most of it, if there is anything left to save. Also, I make sure to save 20% of all earnings for taxes no matter what. It's extremely important if you live in an area where you have to pay taxes on income.. which is probably mostly 60% of the countries. You don't want to get the IRS (USA Tax Agency) on you.

Here's what I save up for generally:

Rent (no rent means no place to live, have to save up for that monthly, will not disclose amount)
Groceries (spend probably $50 a week, sometimes less sometimes more)
Bills (Internet/Phone bundle $120 a month)
Weekend money (going out with friends, $20 to $75)
Misc stuffs ($75 to $200 a month,things like detergents, cleaning supplies, toothpaste etc)
Car Savings
Real Estate Savings

Seems like quite a bit from a freelance job eh?

8 years ago

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Lynne

Guess who has not kids huh? LOL if you have money you are most likely childless...my money just gets sucked up with expenses for my kids. I am trying to save but there is always something I need to buy for them or pay.

8 years ago

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gregketch90

This is a very good question, since I believe that it is impossible to do what you like until there is at least some kind of financial stability. If you manage to close your minimum needs, then you can already think about how to save some of the money and invest it. Where to invest everyone decides for himself. Someone invests in education, someone in business. I like passive investing more, so I prefer to save money for a deposit. The choice of the service turned out to be easy for me, as I read a large number of dentalfirst financing reviews.

3 years ago

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Cristian

I've made a lot of thing with money saved from freelance jobs. I even paid for my own wedding! So yeah, I personally definitely save.

Now that I have a good paying day job, my wife also has a job and I also have a constant stream of freelance earnings coming in every month, it would be only logical to save most of it. Sure some months I indulge, but almost everything from freelance goes into a saving account.

We have a lot of "projects" to take care of in the future and we'll need cash to do it.

8 years ago

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overcast

I am saving around 40% of the money from the earned in the freelancing. I think some of the time it can be harder to save that much there. I have seen that freelancers who are saving a lot of money. And they are on much better terms for financial side. I have found that saving money here and there does add up. And if one can focus on that amount for long enough it'd be better for many.

7 years ago

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PinkTurtle

I try to! It's really hard to save money in a country with a high inflation rate such as Venezuela but I try to do it every month. At least 5% of my incomes. of course in this cases is better to invest than to keep the money in a bank account because it will eventually devaluate. So I don't know how wise is saving in my country...

7 years ago

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Barida

It is not always easy to save funds working as a freelancer for you always have that hope that you're going to make more. So, it takes someone that is really determined about saving money to go through that line of saving.

7 years ago

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augusta

I try to save as much as I can no matter how small it is , nothing is too small to save just make up your mind to save which is what has really helped me.I have forgone alot of things especially if I don't really need them to save some money, we can't be so sure of the tomorrow or the rainy day, so we should always save.

7 years ago

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vinaya

I am a freelancer, I earn a living from freelancing, however, I am far from making a saving. I use my earnings to pay my bills as well as manage my businesses. I need to pay for domain renewals, hosting renewals as well as for content creators for my websites. sadly, I am not earning enough to make a regular saving. As soon as have $100 on my paypal account, I withdraw and pay my bills.

7 years ago

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Corzhens

This is not to brag, just being honest. All my freelancing income goes to my savings account. I am fortunate to have a full time job in a bank that pays well so my freelancing earnings are not exactly needec for the household expenses. By the way, I am earning $20 to $40 in a month of work.

7 years ago

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vinaya

If you freelance as a side job or hobby and have a regular paying job, you can have a luxury of saving your freelance income. However, if you are a full-time freelancer and you earn a living through freelancing, saving might be difficult. I am a freelancer based in Nepal. I need around $500 every month to manage my expenses, anything I earn more will be my saving, however, this does not happen much.

7 years ago

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Kakashi2020

As a part time freelancer, I don't really earn a lot. Whatever I earn, I would spend it on snacks and allowances of my kids. If I earn a good amount then I would use it to buy things that my kids need.

6 years ago

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SEOClerks

Freelancers do you save some money?

Freelancers do you save some money?

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