Since you don’t have a steady, consistent stream of income, having a budget is incredibly important. Build your budget using a conservative amount that you may bring in in any given month. You can also take your previous 12 months’ worth of work and find the average amount on which to build your budget. You should also have a separate budget for your personal needs and your business expenses.
Insurance can be tricky when you are a freelancer. However, it’s important to take those steps to ensure that you and others in your life are protected. In addition to life, health, dental, insurance, you should also look into disability insurance. Protecting yourself now will help protect you in the future.
As a freelancer, managing your time well is as important as managing your money. You only have 24 hours in a day so using those times at which your most productive is vital. Track how much time you are spending on each project/client. This may also help you create a budget when you can measure your time in comparison with your money.
Having money set aside in the event of an emergency or can also be used to fill in the gaps if you have a slow month. Ideally, it’s best to have at least 6 to 9 months’ worth of expenses stashed away that you can easily access.