<\/span><\/h2>\nYour freelance finances are the most important issue to consider when starting out.<\/p>\n
You\u2019re probably used to getting a pay-check by the end of the week \/ month \/ year.<\/p>\n
Not having that is what many people are afraid of when embarking on their freelancing career.<\/p>\n
Luckily, you will get used to this pretty quickly.<\/p>\n
You just have to approach your finances differently.<\/p>\n
The most important thing is to always have enough money in your bank account to allow you to live for the next couple of months, even when it seems the work is rolling in.<\/p>\n
Taxes are an important part of accounting that many overlook in the early days.<\/p>\n
It\u2019s tempting to spend all the money you get, but it\u2019s important to keep in mind that someday the tax office will want its part of your income.<\/p>\n
In order to avoid being trapped in the pitfalls of your tax system, I highly recommend getting an accountant.<\/p>\n
It\u2019s generally not too expensive and allows you to focus on what you\u2019re good at.<\/p>\n
At the beginning of every month I collect my bills, drop them off at my accountant\u2019s and wait for her to tell me how much I have to transfer to the tax office.<\/p>\n
However, it is possible to take care of your finances without the help of an accountant.<\/p>\n
If you have the time to spend on your accounts (and a mind that bends well to these things) you can have a far greater control and insight into your financial situation.<\/p>\n
The most important thing is to be realistic \u2013 if you know you\u2019re not the accounting type, get an accountant straight away.<\/p>\n
Hiring an accountant at the beginning of your freelancing career will be far less expensive in the long run than fines from the tax department and hiring someone to sort out your abysmal records.<\/p>\n
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<\/span>Setup your freelance working environment<\/strong><\/span><\/h2>\nThe first thing I looked for, even before I registered myself as a freelancer, was an office.<\/p>\n
While I enjoy working from home, I prefer to have a place where I can focus solely on work.<\/p>\n
If you can devote yourself to your work at home, then great!<\/p>\n
But if like may of us you find this impossible, look for a place in a shared freelancer office or get your own.<\/p>\n
I\u2019m sharing mine with two other freelancers.<\/p>\n
Though I like a quiet atmosphere, I also like to have people around and this setup is the perfect arrangement for me.<\/p>\n
<\/span>Create your freelance portfolio<\/strong><\/span><\/h2>\nAs a freelancer, your portfolio represents you and your work. If you\u2019re a software developer like me that means always having a profile at hand.<\/p>\n
It features your last projects, what technologies, programming languages and tools you\u2019re fluent in, and your educational history.<\/p>\n
How much you put in here is up to you, I have just one recommendation: Don\u2019t lie in your resume.<\/p>\n
Don\u2019t mention things you didn\u2019t do, don\u2019t know how to handle or worse, things you know are fashionable but know nothing about.<\/p>\n
The work you\u2019ve done in the past speaks for itself.<\/p>\n
If you already worked on several projects, know your way around in several programming languages, there\u2019s no need to lie.<\/p>\n
The more you already know, the easier it usually is to learn new things.<\/p>\n
If a client asks for a specific technology that\u2019s not yet on your resume, either show the willingness to learn, or pass.<\/p>\n
That\u2019s something to get used to.<\/p>\n
It\u2019s tempting to say yes to every job you\u2019re offered, but in the end it might result in a disappointment for both you and your client.<\/p>\n
Care for your portfolio, improve it, and learn new things on your own time.<\/p>\n
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<\/span>Make sure you plan to take holidays<\/strong><\/span><\/h2>\nA lot of freelancers live by the rule that holidays are to be treated as rare events.<\/p>\n
Work is important for sure, but I already paid my dues working too much some years ago.<\/p>\n
For me it\u2019s not worth it to work without taking time off.<\/p>\n
The myth is that clients expect you to work by their schedule.<\/p>\n
While that can be true of some projects, it\u2019s important to have your own schedule too.<\/p>\n
Plan your holidays, at least the time frame, in advance and inform your current and potential clients about it when the project schedule is discussed.<\/p>\n
Personally I need an extended holiday every once a while, time to get away from the computer, get away from the stuff happening in the world of software development, time to get new ideas, regain strength and to read. I think of it as recharging my batteries<\/p>\n
Your clients go on holidays, so there\u2019s no need to feel bad about going yourself, as long as you give them warning.<\/p>\n
Though I shut off most of my communication channels when I\u2019m away, I try to answer emails of potential clients once a week (a nice way to fill in the time it takes to upload your photos on Instagram).<\/p>\n
On my last trip most potential clients were understanding that I was on the other side of the world at that moment and I\u2019d get back to them as soon as I\u2019d returned home.<\/p>\n
Avoiding holidays is also related to another issue:<\/p>\n
<\/span>The Freelance Fear<\/strong><\/span><\/h2>\nEveryone feels the fear at some point.<\/p>\n
The fear of not having money coming into your bank account for a long time, or of not having work for a while.<\/p>\n
Whether you\u2019re on holidays or work\u2019s been scarce, there\u2019s no income coming in.<\/p>\n
In my early days freelancing I panicked.<\/p>\n
But there\u2019s no need to, at least in the short run.<\/p>\n
It\u2019s a situation you have to get used to.<\/p>\n
Though it\u2019s tempting to work your ass off to ensure a constant flow of money, you have to ask yourself if it\u2019s really worth it and if you want to do that to your body.<\/p>\n
Prepare in advance for situations like this.<\/p>\n
\n- Budget to have enough money in your account to get through a dry spell or a holiday.<\/li>\n
- Have a list at hand of things that you\u2019ve always wanted to do.<\/li>\n
- Don\u2019t fall into the habit of postponing things you could do in periods without gigs.<\/li>\n
- Avoid slacking off when you know you have the time at hand.<\/li>\n<\/ul>\n
Quiet spells can be used for these things, or to learn new technologies, different techniques to approach certain problems, and the like.<\/p>\n
It\u2019s far easier and less stressful to confront the fear with a game plan than to give into it.<\/p>\n
Of course it\u2019s normal to worry about money, but there\u2019s no need to panic and to drain your batteries with excessive work.<\/p>\n
You wanted to become a freelancer because you wanted freedom, remember?<\/p>\n
So use your quiet times to develop yourself instead of stressing out.<\/p>\n
Hopefully you\u2019ll find yourself better equipped when that new job comes along!