Growing Online Income

Managing your finances when operating as a freelance consultant

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It is becoming the dream of many to shun the routine affairs of a 9-5 corporate office gig, and find a way to make enough income to be able to lie around on the beach more regularly, or get a chance to see the kids more. As more and more opportunities present themselves to eschew set timetables and particular locations, a lot more people are looking to take the plunge into the world of freelance consulting.

With so many things to take care of yourself, it can be difficult to keep on top of everything and make sure you are not overwhelmed by stacks of paperwork and looming tax deadlines. Luckily, there are many ways to take that pressure off yourself and get back to doing the things that are helping you live the dream.

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The benefits of going freelance are mostly pretty obvious: more control over the work you do, more control over your future career direction, and most importantly for many – how much work you want to do, and where you would like to be while doing it.

In order to keep yourself in good financial shape while getting in to the groove of this new path, there are several options open to you as you begin to build your reputation. Should you feel the need for a minimum limit of financial security, you can suggest to clients that you will only work for a set price, in order to keep track of your turnover. As well as this, just choosing to take on the easy bits of work to begin with can take away the pressure of trying to achieve all of the great things instantly, and allow you to lay appropriate foundations.

If you are after the kind of work that you can say yes or no to as often as you please, but don’t necessarily want to be constantly seeking out this work yourself, consider getting in touch with an umbrella company who will find all the work for you, so you have no need to waste time searching for a client base and can concentrate on utilizing your skills most effectively.

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Another excellent tip for keeping your finances well managed is to open a savings or business account once the work starts to roll in. As you will no longer be on a payroll, no tax will be deducted at source. This means that these responsibilities fall into your hands, so to ensure that when the tax bill rolls around you are not left short, it can be a very useful measure to transfer a certain amount of monthly earnings into a different account. A typical figure to transfer is 20%, though of course this varies according to your total income and the tax brackets that exist wherever you are.

The core aspect to remember when going freelance is to try and cement your reputation wherever possible, so you can continue to maximize your potential and spend your next holiday working at a beach, reclining on a sun-lounger. By keeping on top of everything else, you’ll make it a far less stressful journey.

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