Lately, I’ve been thinking about scaling up my freelance gig. It’s been steady, but I want to grow. The tricky part is figuring out the financial side.
How do you guys handle saving for taxes, reinvesting in your business, and still paying yourself enough to live on? It feels like a balancing act sometimes.
I just use a regular checking account for everything. Keep some cash aside for taxes. Buy tools when I need them. Seems to work fine for me so far.
I’ve been there. Managing money as a freelancer can be a real juggling act. Here’s what’s worked for me:
Set up multiple accounts:
Every time I get paid, I divvy it up:
I pay myself first, but keep it modest. Helps avoid feast or famine cycles.
For growth, I set profit targets. When I hit them, I reinvest in:
It’s not perfect, but it gives me a clearer picture of my finances and lets me make smarter decisions about scaling up.
Remember, it’s a process. It took me a while to find what works. Keep tweaking until you find your sweet spot.
Totally get where you’re coming from. When I started out, I was all over the place with my finances.
Here’s what worked for me:
I opened separate bank accounts - one for business, one for taxes, one for personal. Every time I got paid, I’d split it up right away.
30% went straight to the tax account. Better to have too much saved than not enough come tax time.
I set a base salary for myself and transferred that to my personal account each month. Didn’t touch the rest.
Whatever was left in the business account, I used for expenses and reinvesting. Bought better equipment, took some courses, stuff like that.
It took some trial and error to find the right percentages, but having separate accounts made it way easier to keep track.
Oh, and I started setting aside a bit for retirement too. Wish I’d done that sooner.
Just remember, what works for one person might not work for another. You’ll find your groove.
I use a simple system that keeps me on track financially.
Set aside a fixed percentage for taxes with every payment. No exceptions.
Pay myself a consistent amount each month. Treat it like a regular paycheck.
Whatever’s left goes into a business account for expenses and growth. When there’s extra, I reinvest in tools or training that’ll boost my income.
It’s basic, but it works. Keeps things clear and helps me avoid financial headaches.
Never used fancy stuff. Just keep some cash for taxes. Spend on tools when needed. Simple works for me.
Keep it simple. Open a business account and a tax account. Put 30% of every job in the tax account. Pay yourself a set amount each month. Whatever’s left is for business expenses and growth.
Don’t overcomplicate it. Just make sure you’re setting aside enough for taxes and not spending more than you’re bringing in. When you’ve got extra, put it back into the business. Buy better tools or learn new skills that’ll make you more money.
Review your finances every few months. Adjust if you need to. As long as you’re not spending more than you make and you’re saving for taxes, you’re on the right track.