A freelancer is a freedom-loving person, does not tolerate instructions and is left to himself most of the time. The ability to independently decide where, when and how much to work is an undoubted plus of freelancing, but, on the other hand, such freedom often causes unstable income. It is difficult to plan a budget in such conditions, but there are ways to competently solve this issue.
Instructions
Step 1
Given that the income of a freelancer in the current month is almost always different from the income received in the previous month, the first thing to do is to equalize these amounts. To do this, you need to take the statistics of earnings for the year by month and select the month with the minimum income. Now it is this amount that will serve as the basis for the budget.
Step 2
It is necessary to study the bank offers and choose the most profitable deposit program. Many banks offer so-called mobile deposits, from which funds can be withdrawn and replenished at any time. They offer a slightly lower percentage, but no penalties at all.
Step 3
It is advisable to immediately put all the income received into a deposit account, and only then pay yourself a salary equal to the amount of the minimum monthly income taken as the basis of the budget. The rest of the money, of course, will remain on the deposit and continue to bring albeit small, but stable income.
Step 4
To keep the budget from running into deficit, it is necessary not only to streamline income, but also to carefully monitor the items of expenditure. To do this, you need to think over and make a list of all waste and needs for the month. After that, you should prioritize by putting numbers from 1 to 10 in front of each expense item, depending on the importance of certain expenses. For example, earning on the Internet, you just need to have access to the network, therefore, of course, paying for the provider's services is one of the most important expenditure items. However, in this case, everything is individual and depends solely on personal needs and lifestyle.
Step 5
The next thing to do is to rewrite the list of expenses, but this time in decreasing order of importance, starting with the essentials. Along the way, you can put down the estimated amount required to cover each expense item. Then, knowing the amount of monthly income, calculate from it in order the amount of expenses, moving from top to bottom of the list. At a certain stage, the money from the budget will run out. This is where you will need to stop and draw the line. The expenses that will be located under the line will not be included in the budget. Undoubtedly, this is a somewhat tough option, requiring patience and willpower. After all, it assumes a not too frequent increase in the size of salaries, but it makes it possible to form a "financial cushion" that is simply necessary for a freelancer - reserve savings.
