Budgeting: Why Is It Important For A Freelancer?

Being a freelancer means that you are your own boss. This also means that you are responsible for the success or failure of your jobs.  A freelancer does not have a steady income at all time. The income will vary depending on the nature of the job, number of clients etc. Freelancing also does not cater for any employee benefits. Therefore as a freelancer, it is important that you learn the art of budgeting down to the pat.

We hear a lot of reasons for why freelancers tend to ignore budgeting including ‘I am trying to build up a business first’ or ‘I never had a problem till now’ or the classic ‘Never had the time’. But if you ask them, most freelancers will agree that maintaining a budget is very important for any freelancer.  In this post, we will take a look at some of the reasons for why budgeting is import for a freelancer.

It helps you cater for lean times

As I said before that, a freelancer can never be sure of a steady income. You might earn more from a job or sometimes you might not have a job. Therefore, the money that you earn from the high paying job will come in handy when you don’t have a job provided you have made a budget for yourself and followed it through.  Because even when you don’t have a job you will have to pay for expenses like bills, electricity, internet, phone and food.

It helps you dream big

When I started out as a freelance writer I was barely able to work 2-3 hours a day because things like housework, electricity cuts etc. would eat into my time. I started operating on a budget where my first aim was to save up enough to buy a generator to not to let electricity cuts interfere with my work.  I saved up enough to buy one in 3 months by sticking to the budget. I now have an answering machine to take care of all the unwanted calls and a much faster laptop and table to help me work faster. This all has been possible because I made a budget and stuck to it.
Having a budget to tidy you over during your lean times will help you dream big.  With your budget in your hands, you will be able to plan for better things and even present a more professional front to the potential clients. Your dreams are not limited to the professional front only; they can be personal also like taking for favorite art class or going on your dream holiday.

It helps you sail through life’s surprises

Life can never be very unpredictable. You never know one moment from another about what is going to happen. If you are not prepared for the surprises that life will throw at you then it will catch you on the wrong foot. Therefore, it is always important to prepare for such unforeseen events. The best way to do that is to have a budget set which will cater for any emergencies.

When you are working as a freelancer, you don’t have the standard insurance covers that are provided by the companies therefore you have to think about it yourself. If you have a budget on hand then you will be able to set a sum aside for emergency funds, which can be tapped easily without you having to worry about money to pay bills the next month.

Budgeting gives you a kind of security for you and your family. Being secure with a budget also means that your mind will be free of worries, which in turn means that you can work better. So you see it is a Win –Win situation!

About K Saravana Kumar

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