Lately, I’ve been thinking about the cyclical nature of freelancing. Some months are great, others not so much. It’s got me wondering how other solo contractors handle the lean times.
Anyone have strategies they use to weather financial storms? I’m curious about both practical steps and mental approaches.
I don’t plan much. Just fix stuff and hope people call.
Never had a slow month that lasted too long.
I keep it simple. Save a chunk of money during good months. When work slows down, I cut back on extras and focus on essentials. I also reach out to past clients for small jobs. Sometimes that’s enough to tide me over until things pick up again. No fancy strategies, just practical moves to keep the business going.
I’ve been through a few rough patches. Here’s what I do:
Emergency fund: I sock away cash during good months. Aim for 3-6 months of expenses.
Side gigs: I keep a few small, steady projects going. They’re not glamorous, but they help fill gaps.
Skill building: Downtime? Perfect for learning new stuff. Makes me more valuable when work picks up.
Network maintenance: I grab coffee with old clients or industry folks. Sometimes it leads to work.
Expense audit: I regularly look at what I’m spending. Cut the fluff before I have to.
It’s not perfect, but it helps me sleep at night. The freelance life is a rollercoaster. Gotta be ready for the dips.
I’ve been handling this for years now. Here’s what I do:
I keep a separate business account where I stash about 20% of each payment. It builds up over time and acts as my safety net.
I also track my monthly income and expenses in a simple spreadsheet. It helps me spot trends and plan ahead.
When things slow down, I cut back on non-essentials first. No fancy lunches or new gadgets until business picks up.
I’ve found having a mix of short-term and long-term projects helps smooth out the cash flow. The steady work from long-term clients keeps me afloat during dry spells.
Sometimes I’ll offer a small discount for early payment. It’s not much, but it can help speed up cash flow when I need it.
Remember, it’s normal to have ups and downs. Don’t panic when things slow down. Use the time to update your skills or reach out to old clients. It usually picks up again if you stay proactive.
I just keep some cash stashed away for slow times. Nothing fancy. Helps me sleep better at night knowing I’ve got a cushion. Might not work for everyone though.