Just wrapped up another quarter and realized I need a better system for setting financial goals. As a solo contractor, my income fluctuates a lot. Anyone else struggle with this? How do you plan ahead when every month is different?
Keep it simple. Look at your last year’s numbers, quarter by quarter. Set your new goal about 10-15% higher than that. It’s not rocket science.
If you’re just starting out, figure out your monthly expenses and add 20%. That’s your baseline.
Don’t get hung up on perfecting the system. The goal is to have a target to work towards. Adjust as you go.
Remember, some months will be lean, others will be flush. That’s contracting. Build a buffer for the slow times.
Setting financial goals as a contractor is tricky. Here’s what I do:
- Look at past quarters
- Set a minimum target
- Add stretch goals
I grab my income from the last 4 quarters. The lowest one becomes my baseline for the next quarter. Anything above that is a win.
Then I tack on some specific targets:
- Land X new clients
- Finish Y big projects
- Increase rates by Z%
These keep me pushing forward, not just maintaining.
I use a simple spreadsheet. Update it weekly with income and expenses. Helps spot trends.
One lifesaver: I set aside 25% of each payment. Covers taxes and slow periods.
Remember, goals are just guides. If you miss, learn and move on. The point is to have a direction, not stress yourself out.
Numbers ain’t my thing. I just work and hope for the best. Pay bills and save a little when I can.
I track my average monthly income from the past year and use that as a baseline. Then I add 10% for growth.
For each quarter, I set a specific target based on typical seasonal trends in my industry. Having concrete numbers helps me stay motivated and plan my workload.
Reviewing and adjusting goals monthly keeps me on track.
I’ve been in your shoes. My system isn’t perfect, but it works for me.
I look at the last 4 quarters and pick the lowest number. That’s my baseline goal for the next quarter. Anything above that is a win.
Then I add specific project goals. Like ‘land 2 new clients’ or ‘finish that big project’. These help me focus on growth, not just numbers.
I keep a spreadsheet with my income, expenses, and goals. Update it weekly. Helps me spot trends and adjust.
One trick: I set aside 20% of each payment for taxes and slow months. Saved my butt more than once.
Remember, goals are just guideposts. Don’t beat yourself up if you miss them. Learn and move on.
I just wing it mostly. Never been good with numbers or planning.
Keep a bit extra in the bank for slow months. That’s about all the financial planning I do.