I’ve been freelancing for a while, and this balance is tricky. It’s hard to decide how much to put back into my business versus saving for personal goals like a home.
I often feel like I have to choose between investing in my work or securing my personal future. How do others manage this?
I just keep enough for next months bills and tools.
I just pay myself first then see what’s left for tools or van repairs.
Fixed amounts work better than percentages for me. I pay myself a set salary every month like any other job.
Whatever comes in above that salary goes straight to business expenses first, then personal savings if there’s anything left over.
This way I know exactly what I can spend on personal stuff and the business gets what it needs to keep running.
I tackle this by splitting my revenue into buckets right when payments come in.
Business gets 30%, personal savings gets 20%, and the rest covers living expenses.
The business percentage covers equipment upgrades, software subscriptions, and a small emergency fund for slow months. Personal savings go toward bigger goals like that house down payment.
Some months I adjust the split if there’s a big business expense coming up or if I land a really good contract. But having those percentages as a starting point keeps me from just winging it every time.
The key thing I learned was to treat the business money like it belongs to a separate person. Once it goes in that bucket, it stays there unless it’s for actual business needs.
I set aside 25% for taxes first. Then I take my living expenses and put the rest into business accounts. Personal goals come after the business is stable. You need to cover tools, vehicle maintenance, and cash flow first. I learned this the hard way when I had to turn down jobs due to broken equipment. Once business expenses are handled and I have three months of operating costs saved, I can start building personal savings.