Now, your freelance career, thankfully, has started bringing you income.
But I need to warn you: lack of proper knowledge of how much comes into your purse as a freelancer would be a disadvantage!
We can all attest to that beautiful scenario in which we do not seem to know how an undocumented amount of money got lost in ‘transit’. This should not be said of cash got from freelancing for certain reasons, some of which I would be highlighting.
For the reasons below, if possible, a special account should be set apart, to which all money gotten from freelancing is diverted. Even if a special account cannot be set apart, you would need to document the cash flow of your freelancing business. This way, you actually know how much comes in during a specified period of time (daily/weekly/monthly)
It is a business venture
Let us get this clear. You are passionate about your skills and you render your services with such precision and accuracy. But like I said, let us be clear on this; your freelance career is a business venture, not a non-profit organization. Now that this is out of the way, we need to establish some things about the business.
Money is important in a lasting business venture, and so if you want your career as a freelancer to effortlessly take a leap, you need to track how much you are making, now (and keep on tracking it as you evolve, of course).
Extra Source of Income
For many freelancers, there is another job lurking in the background (or freelancing is the other job lurking in the background). And so, the cash obtainable from freelancing serves as an addendum, a viable addition to the income generated from jobs besides freelancing.
In this day and age when having multiple streams of income is well encouraged, and standards of living are skyrocketing at unpredictable rates, freelancing can help absorb the shock generated from unforeseeable circumstances or unmet needs.
But, if you do not even know how much you earn from freelancing, how can this goal be successfully achieved? I wouldn’t know.
This is why I would encourage you to get a freelance purse/account; and fast too.
Further Development of Freelancing Skills
When it comes to cash, every business (wo)man knows that you do not consume your seed. It is to be used in further propagating the course from which it was obtained.
Imagine this scenario: you suddenly hear of this awesome conference where key people in freelancing would be sharing tips, and rendering one-on-one services to freelancers; with the aim of further nurturing their skills.
It, however, comes with a catch: there is a fee.
At this juncture, you can take one of three steps:
Decide albeit painfully against going, solely on the basis of the fee, which at the moment you cannot afford, or
Decide to go, but then you have to struggle to squeeze out the fee from your main account – seeing as it is an unplanned event
Decide to go, and with a huge grin on your face, you pay the fee out of your freelance purse.
Now, option C is the real deal! No extra stress required, you can easily sharpen your skills as a freelancer if you had wisely bought into the idea of a freelance purse and consequently created for yourself, funds for skills acquisition/development.
It needs no arguing that once you have acquired/developed a new skill in line with your primary freelancing skill, you are likely to generate more income from it- propagating this positive cycle of growth.
Creating and maintaining a website
You might have had dreams of creating a website for your freelance career, one which actually needs investing a sum of money and with a freelance purse, this needn’t be mere dreams – it can actually evolve into reality.
Payment of employees
And once your tentacles have been expanded, your horizon broadened, maybe, just maybe, you would begin to have progenies, upcoming freelancers who now work under you and look to you for direction/support.
With a freelance purse, you are now capable, self-sufficient as regards the payment of the members of your team, further increasing your reach as a freelancer.
I really do hope that I have been able to convince us on the benefits of a freelance purse.
Do let me know what you think!