Personal Finance Tips for Freelance Writers: Never Feel Broke Again

A couple of months later, we understand this inefficient low-payer is sucking up excessive time and making us go recovered cost much faster.

We take gigs we understand we should not, due to the fact that were desperate and require the cash.

Worse, some authors wind up needing to give up and go crawling back to those day tasks we hate.

Starving authors do terrible things.

Why do so many writers report feast-and-famine cycles and times when theyre out of cash and rushing for any sort of gig?

Two primary reasons:


Not enough marketing to get a stable stream of leads
Lack of understanding of money circulation

When things go wrong, cash goes out too fast and comes in too sluggish, and presto– youre broke.

Capital for Freelancers.

Frequently, I fulfill authors who early rather well, but still have money crises. They make enough, but the cash never seems to show up quickly enough to cover the bills! The timing is off.

What is money flow? Its the motion of money through your business. What you desire is money streaming out of your organization slower than capital in. That leaves you with cash on hand.

With some careful management, you can enhance your capital, even if you dont get a raise or more clients


10 Personal Finance Tips for Freelance Writers.

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Here are some individual finance suggestions freelancers like yourself can use to change your service so that your cupboard doesnt get bare:.

1. Make more.


Merely having more income will help keep you from running into a cash-flow problem if youre careless on some of the cash-flow management ideas I offer listed below. (I guarantee all the rest of these pointers you can do no matter what your client scenario.).

I understand, I just said you wouldnt have to get a raise or new clients. In fact, one of the most convenient methods to have more money is to get paid more.

Charging appropriate, professional rates for your work rather of rock-bottom Craigslist-ad type rates is a fast path to growing your earnings. Changing even one lower-paying gig with a better-paying one will improve the photo. And that will assist you ward off Empty Bank Account Syndrome

2. Spend less.

I recently satisfied an author who notified me she has no house internet, phone, or cable TELEVISION bill. She manages using the library computers and her cell phone.

Weve also ended up being fans of shopping Goodwill for kids clothes before we hit the retailers. I saved $300 doing that recently compared with hitting Target initially last fall.

To cut costs, take this difficulty from Your Money or Your Life: Write down every cent you spend for 3 months. Evaluate your costs patterns and see whether you feel you get a great value for each cost. If not, slice it

Our household made the choice to go down to one automobile at one point a couple of years back, even though we had three chauffeurs at home at the time. It takes a good little balancing and taking the bus, however the savings from not guaranteeing and maintaining a second car were well worth it.

Unless you are living off the grid in a yurt in rural Idaho or something along those lines, there are probably expenditures you can cut.


3. Liquidate possessions.

Do you have a garage full of classic film posters, antique toys, or other valuable things?


Toss it on eBay, Facebook Marketplace, or any other similar site, and create a savings account from what you make.

Whether you take it big or small scale, getting rid of things youre not utilizing frees up space, conserves on maintenance and storage expenses, and provide you cash to put in the bank. Mentioning which..

I have buddies whove taken this big scale in the decline and have actually sold boats and second houses to lower their nut.

4. Conserve more.

Its time to cut back on any suppers out and trips and motion pictures and such until youve got one if you have no money cushion.

With money in the bank, your lean times end up being less of a cause for panic. You have money to tide you over.

Once you grow your income, raise money from selling off belongings, and/or learn to reside on less, you should start to have excess money– cash that doesnt need to be invested immediately to pay costs. Dont get all excited and go to Disneyland with it … a minimum of not until you build up a six-month emergency situation fund.

And dont forget, youll also need to be reserving money to pay your self-employed taxes.

Feels less scary currently, hm?


5. Make money faster.

As the years went along in my freelance organization, I ended up being increasingly consumed with asking prospects this concern:.

When will I be paid?


I choose “Final payment due within 14 days of turning in very first draft if no modifications required or on approval of final draft, whichever comes earlier.” That locks it down so if you dont hear a peep after you kip down your draft– perhaps since the client hopes to delay their final payment– 2 weeks later your cash is due.

The client might pay your freelancer invoice 5 years from now and you couldnt even sue them. This is the kind of things that causes major cash-flow difficulty!

Moral of the story: Make sure you define payment terms, specifically when the final payment is due. Its easy to keep the checks coming while youre in the middle of a big task, however frequently authors are fuzzy on what activates the final payment.

If your client is a slow-paying publication, it may be time to try to renegotiate your payment terms. For instance, I got one foot-dragger to change from paying on publication to paying 50 percent when I turned in my first draft, that made the long wait for last payment easier

Too frequently, authors plunge in without an agreement and only a dim idea of payment terms. Many writers make sure they understand the rate of pay, however not necessarily when that money needs to be shelled out.

6. Expense immediately.

Many writers are confused about when to send clients a costs, or just feel worried to strike send on it. My answer? I send the expense right together with my first draft.

No, I do not wait to see if they like it. Or to learn if they desire modifications. My costs goes out instantly.

One factor I do that is I find I forget unless I do it right now! The other reason is to enter my clients billing system as fast as possible.

At many business, checks are only cut when or twice a month. Its precisely these sort of delays that lead to a cash crunch


7. Contact late payers instantly.

Subject line: Checking on billing #XXX due 04/1/21.
Hi client–.
Im just signing in on my costs sent on X date. It was due yesterday, so wanted to ensure you received it.
Can you let me know when I can expect payment?
Thanks– Carol.

I keep stringent track of due dates and the day after a check was expected to turn up, Im on the phone or emailing the client.

Keep it calm and professional. A normal message from me:.

After when to costs, the next awkward circumstance for many writers turn up when the check doesnt arrive.


Even better, you can utilize an accounting tool like Freshbooks (totally free 30-day trial) that will immediately send payment reminders to clients who havent paid on time

Try to remember this is simply company. You are running a business, and if people do not pay you when theyre expected to, you enter money trouble. You have to gather on your costs.

8. Pay bills slower.

Remember those old Paul Masson wine commercials? Here the motto is “Pay no expense before its time.”.

If youre having cash-flow issues, instead of paying bills two times a month, keep in mind the due date on each expense and dont send it until the payment is required. Yes, this can use up a bit more time as you may wind up composing checks regularly through the month. On the other hand, the money stays in your pocket.

To extend this strategy even more, there are some bills you can pay late without charge. Energies and cable television bills frequently wont punish you, for example, and house taxes can go a little late, too. If something should be paid late to keep a bank balance, postpone the expenses where you will not be struck with a late fee or interest charges


9. Avoid charges and take discounts.

Other costs will ding you with a late charge or charge you interest if youre slow. Make sure you get those costs to the top of the stack and take care of them initially.

While were talking costs, some offer a discount if you pay all of it upfront. You understand what to do if so.

Personally, nothing burns me up like knowing I could have taken the household out to supper, however rather paid a $30 late charge on a credit card and $20 of interest because my payment didnt get there on time. Watch those credit card due dates to keep more cash, and mail those young puppies 10 days ahead of the date to make certain you arent charged– the mail is sluggish these days.

If you have a huge bill that appears at a time of the month when you typically are low on money, call the company and see if you can alter your due date. Often, theyre delighted to oblige, and you can smooth out a cash-flow dip with a single telephone call.

For instance, here at Tice Hall we make split mortgage payments– half at the beginning and half in the middle of the month. When, thats much easier on money circulation than having to pay the entire amount at


10. Track cash-flow patterns.

If youre having cash-flow problems, I highly recommend tracking your cash circulation. In the rush of work and household life, its typically all a blur and you lose track of where the money all goes.

Keep a profit-and-loss statement that records your cash on hand at the beginning of the month, income and expenditures, and cash at the end. After a few months, youll begin to see trends.

Ask yourself: Is money increasing or gradually receding? Is there one client whose constant late payments are the main source of problem?


You may also track hours for a month to see which clients is genuinely your most affordable hourly rate. The number of hours are you considering that client? Perhaps its time to make a change.

Getting a raise from one low-payer, or finding one brand-new customer who pays more immediately can make a huge difference.

The whole secret of how I constructed my income to 6 figures was regularly evaluating capital and adjusting appropriately. I dropped low and sluggish payers and replaced them with much better and more timely payers– simple as that– up until I had the earnings I desired

Hows your cash circulation? Leave a comment and share your individual financing suggestions for keeping more money


What is cash circulation? What you want is cash flowing out of your service slower than money flows in. Frequently, I fulfill authors who early rather well, but still have cash crises. In fact, one of the most convenient methods to have more cash is to get paid more. If youre having cash-flow problems, I highly suggest tracking your cash circulation.

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