There are plenty of perks that come with being your own boss: flexible hours, picking your projects and more control over work-life balance. But one thing you’ll miss out on is an employer retirement benefit.
When you freelance, building your own retirement nest egg, including choosing the right plan, falls entirely on your shoulders. You can set up a retirement account at an online brokerage or robo-advisor. But first, you should know the best options for you. [Read more…]
Whether you are a part-time freelance writer trying to make some extra money in your spare time or you want to make a living from your freelance writing projects, there are often times when you need funding to make these projects a reality.
There are a variety of funding options for freelance writers, depending on the type of project they are working on. Some options are better for those who need capital to start and maintain a business, while others work best for creative projects that require a one-time funding source. Below are four funding options available to freelance writers, along with some information on when and how to pursue them. [Read more…]
Most everyone does a Christmas countdown, but I don’t know a single person who does one for Tax Day. We might as well do it since there is no escaping paying taxes – unless you want a visit from the IRS.
So, 32 days till that wondrous day: April 18. [Read more…]
Most freelance writers cannot imagine themselves going back to a corporate setting where job stability – and salary – is practically guaranteed. As we found out in our survey, The State of Freelance Writers in 2015 , the main issue that freelance writers face is uncertainty in income.
For sure, all of us have faced this problem at least once. There are those periods when we are flush, but there are times when we just don’t know how we’re going to manage.
During these times, it’s easy to fall prey to desperation and depression, but there are ways to handle things. When you’re in dire financial straits, you can either “give up” or find solutions.
Let’s be positive and choose the latter, shall we? [Read more…]
Being a freelance writer comes with many advantages and unique challenges. While you’re technically able to set your own hours, work from wherever you want, and accept and decline projects as you please, the reality is that you’re often at the mercy of your clients. During a busy period, this can mean long hours, busy schedules, and little time for handling other issues in your personal life.
It is thus important to have a plan for your finances. One idea is this: how freelancers should invest their money. If you have something extra, make your money work for you. [Read more…]
“Big money” is obviously relative. For some freelance writers, this could mean at least $50 per hour. For others, this could be at least $100 per hour.
No matter what figure you consider big money, you can reach that goal. It may take a bit more work than you’re currently doing, but with these four simple tips, you will increase your worth.
First things first. You’re a writer. Therefore, you need to make sure that you know what you’re doing, that your writing skills are above par.
Go one step further. Make sure your writing skills are so good that clients can’t help but be impressed.
Additionally, know what kind of writing fits client requirements. Learn how to write copy for landing pages if you are targeting that niche. Learn how to write well-researched articles if you want to reach out to clients who need this type of content.
Be honest with yourself. How good a writer are you? What areas can use improvement?
Really fast. The faster you write, the more work you can take on, and the more money you can earn. However, do not lose sight of the fact that, on its own, writing fast won’t lead to big money.
You can be a blazingly fast writer, but if the quality of your work suffers, then you’re better off writing slowly and delivering excellent work.
How do you train yourself to write fast?
Go easy on yourself when writing the first draft. Just go ahead and write as quickly as you can. Once you’re done, edit and polish your article. It may be difficult in the beginning, but once get the hang of it, you’ll write even faster.
Here’s another way to help yourself to write quickly. Focus on what’s most important: the writing.
Yes, research is necessary in many cases. If you’re not an expert on the topic you’re working on, then you’ll definitely spend more time on research. However, do not spend more time than you have to on this activity!
You don’t need to spend hours and hours on research and ground work. Just get the information you absolutely need to get the job done well, and get on with it!
Note: research may include reading background material, looking up stats, interviews, and so on. You may have to do some tests to determine just how much research you need to do (on average).
We often see hourly rates in job ads, don’t we? That works most of the time, but if you want to earn more for a project, don’t give an hourly quote.
Instead, mention a flat fee for the whole project. The trick is to do the math so that the flat fee you quote gives you the hourly rate that you want.
Follow the advice of expert negotiators: quote a fee that gives you leeway to negotiate. Also determine beforehand the lowest amount you will accept.
These are ways freelance writers earn more. Although it does not encompass everything, it is a good start. Do you have your own success stories? Share them with us, and help fellow freelance writers earn more!
Freelance writers have all the financial freedom in the world, don’t we?
I wish!!! The truth is that while we do have the potential to earn more than if we held a 9-to-5 job, the degree of financial uncertainty is always there. It’s not far from the truth to say that freelance writers may face more uncertainty when it comes to financial issues.
While we do have those periods when we get a whole lot of money, there are financial pitfalls that we should not ignore. If we tend to “live easy, love free”, before we know it, we might need the assistance of an expert bankruptcy lawyer to get out of the mess we’ve – perhaps unwittingly – created.
If you’re financially responsible, good for you. You can pass up on this post. If you’re not so sure, then I hope you continue reading so that you can avoid these financial pitfalls that may not be easily recognizable.
Just like some employees may take their day jobs and bosses for granted, it may be that some freelance writers take their regular clients for granted. The thinking may be, “We’ve been working together for so long. It’s going to last forever.”
How is this a financial pitfall?
If you take your clients for granted, you may not be sensitive to their needs. You may not deliver the best work you possibly can. The result is that you may lose their business.
The solution: Take preemptive measures. Treat each client – old or new – as if they were your only source of income. Give them your best, and don’t take them for granted, even though they may be the easiest person to work with.
In the same way you may fall into the trap of taking clients for granted, you might take job hunting for granted. You have a lot of clients. You have more than enough on your plate. Why look for freelance writing job opportunities regularly?
Here’s why: You never know when you might lose a big client. It is thus important that you have a rolling roster of clients that can make up for an unexpected loss.
The solution: While you don’t have to always bite off more than you can chew, do apply for jobs now and then. Even small jobs can lead to long-term, more profitable ventures.
I don’t have to emphasize just how important it is to pay your taxes. The IRS has its ways, and it will find out if you’re not paying your dues at some point. The thing is, sometimes, you may not be aware of all your responsibilities as a freelance writer taxpayer. The excuse that “you don’t know” won’t work. If you don’t declare and pay your taxes correctly, you might face enormous fines, which could deplete your savings – or worse.
The solution: Learn about your obligations as a taxpayer. If you can’t do it yourself, hire an accountant.
Any career has its financial pitfalls, but for freelance writers, the stakes may be a little higher simply because of the lack of traditional job security. With a little bit of care and foresight, we can avoid those financial pitfalls.
What other potential financial pitfalls do you see or have experienced? Share them with us in the comments!
For those of us who feel we were born to be writers, the uncertainty and struggle of a writer’s life isn’t enough to keep us from pursuing it. That said, we still need to pay the bills. Don’t let your literary aspirations come to a full stop by a swiftly dwindling bank account. Prepare yourself financially for a life of writing with these three tips:
Calculate your living expenses and create a budget you can stick to. Yes, this means the days of impulse shopping are over. Research shows that when you buy something on impulse, biochemical changes occur in your brain that give you a high. So, when you do buy things on impulse, you’re likely chasing the high, despite the fact that it is short-lived and can result in significant debt later.
Avoid this phenomenon by building in days of indulgence into your budget. Instead of gaining pleasure from purchasing something new, take pride in your discipline and ability to stick to your budget. You’ll find an easy-to-use budget calculator at YouCanDealWithIt.com.
When you’re staring at an empty coffee cup and a barren fridge, it’s tempting to consider taking out a loan. Before you do, consider this: Personal loan interest rates currently sit between 12 and 21 percent a year, according to Deal4loans.com. The rate you get depends on your credit history, income and geographical area, but even if you come in at the low end, you’ll end up paying hundreds or even thousands in interest by the time the loan term ends.
You may need to seek income outside of writing to lean on. This might mean that you work nights or weekends so you can write on the weekdays or vice versa. This work need not be glamorous, but it is crucial to your survival. Besides, sometimes a change of environment or pace can help you get out of a writing rut and provide fodder for your novel. To come up with extra money to meet expenses while you write, consider any of these ideas:
Nearly one in three Americans isn’t saving any money for a future emergency, the Wall Street Journal reports. Make it your goal to save as much as you can from every paycheck, so eventually you’ll be able to devote most of your time to writing. To put things in perspective, the Bureau of Labor Statistics reports that the median income for writers in 2012 was approximately $56,000, a goal that is well worth your struggle. For a simple savings calculator, visit Bankrate.com. And if you still can’t get the motivation to save, read finance expert Dave Ramsey’s article on the secret to saving money.
Heeding this advice can set you up for financial success and give you the peace of mind necessary to create the next great novel.
Business purchases are expensive, especially for startups and small business owners without deep pockets. Rather than trying to have it all, look for ways to reduce what you have to buy without actually losing any functionality. It is all about getting more bang for your buck when you are dealing with running a business on a shoestring budget.
Via Flickr by BlockSim
This is not kindergarten again, but one effective way of reducing IT and technology costs are simply to not buy as many. Communal computers are often just as effective, especially on split shifts. Sharing computers, especially as freelancers, is easy enough to do and can save a business thousands of dollars especially at startup. Sharing resources like this cuts costs but does not usually impact productivity or customer service. If it works for your organization, it’s one of the most effective ways to trim the budget.
Via Flickr by all.promising
On the other hand, find an easy to use Android phone or tablet for each employee. Use cloud software to connect databases and resources to the tablets. Tablets often cost a fraction of the cost of a PC, but may have every program necessary. In addition, they keep your staff or clients by your side so you never miss a beat. Tablets are the “in” thing, but be wise about this purchase. Buying a bigger name brand does not always mean a better product. Buy business-smart tablets with total functionality for what your needs are.
Via Flickr by Roberrific
With a tablet in hand, it makes sense to link your staff together with smartphones. Instead of paying for individualized service, though, maximize profits by using a shared plan. You’ll cut the costs and make sure everyone is always connected to serve the client’s needs within moments. Seek out an affordable phone plan right for your group. You will want to investigate options for shared plans such as shared data plans, too. Depending on how much your staff is using their phones, this may be a significant money saver. Some providers want your business so much that they will offer a significant discount.
Via Flickr by Salil1365
Not really, but why not share space with other freelancers or small businesses. It is a simple idea that can work very well for some small businesses. If you and the business owner down the hall already work in the same building, have non-competing businesses and like each other enough, sharing a space will save you money. This is especially efficient when you do not need to have a customer storefront. Sharing space means cutting costs on property taxes, rent, equipment, furnishings, and even customer service staff in some cases.
Every penny counts for today’s small business. With a sharing mentality and a frugal business plan, the goal is to focus on each purchase. How can you effectively trim that purchase price down just a bit more? The more creative you are (and by moving in together with fellow freelancers, you are being creative!) the more likely you are to make your goals and skyrocket to profitability.
Being a freelancer has lots of perks, but just like anything else, it also has its downsides. I could be wrong, but I think that being able to handle one’s finances smartly is a major concern of every freelance writer. Not only do you have to make sure that you land enough gigs to cover your living expenses every month, you also have to make sure that you are able to manage your income and not spend more than you earn.
For individuals who are new to freelance writing, and who may have worked for a regular salary prior to going freelance, the financial challenges may be bigger. I still remember the first month after I left my day job and relied on freelance writing as a sole source of income.
My day job used to pay twice a month, and I also wrote freelance on the side. That meant I had a steady of flow of money coming in, and while huge amounts were not involved, I always knew that there would be something no matter what.
Soon after that first month, I developed habits that contributed to making ends meet – bad month or good month.
You may find it old fashioned, but I became a regular visitor of coupons sites such as Cheap Sally. These sites are invaluable if you are serious about making savings. The discounts that you find may not be humongous, but at the end of the day, the small savings really do add up.
Another trick I have learned to rely on is to always set aside money for the essentials at the beginning of the month, when money comes in. Rent, electricity, water, phone, insurance, and Internet – no matter how much I earn each month, these things are first on the list of expenses. This way, I can be sure that I will not find myself without Internet connection at some point (it’s how I earn, after all!). I just adjust my spending habits after all the essentials are paid. If it’s a bad month, then working at coffee shops (or going out to eat) gets relegated for the next month.
I have found that groceries are usually the largest expense I have every month. To ensure against starvation during a bad month, I stock up on non-perishables during high earning months. Soups in cans, tinned tuna and salmon, tinned veggies, pasta noodles, etc. – my pantry may look like I am building a bomb shelter at some point, but stocking up really helps during lean months!
With a little preparation and the willingness to be frugal when necessary, a bad freelance writing month is not that bad after all. How about you? Do you have any tried and tested tips to make ends meet?
Photo via 401(K) 2012
