Search
Close this search box.
Blog » Personal Finance » Freelancing Full-Time? 5 Personal Finance Moves

Freelancing Full-Time? 5 Personal Finance Moves

Updated on April 26th, 2023

I did everything backward when I started freelancing.

I was fresh out of journalism school. Instead of getting an entry-level job at a newspaper or magazine, I immediately started looking for online gigs.

My then-husband and I were up to our eyeballs in student loan debt. He still had years of schooling ahead of him. I decided to do what it took to make it work.

Looking back, that worked for us because we were young, not established in any sort of career, and poor students to begin with. Freelancing full-time wasn’t a huge financial stretch for us. Today, though, if you plan to break into freelancing and eventually quit your day job, you need to make sure you are properly prepared financially.

1. Emergency Savings

You don’t want to quit your day job without a safety net. Freelancing full-time comes with a degree of uncertainty. Save up for emergencies. Get a solid chunk of change set aside before you make the switch.

If you have a bad month with your freelancing, you want to make sure your bills are covered and that your family can eat. As you get going, a good emergency fund (no matter where you keep it) can be a good backstop.

2. Insurance

Having the right insurance coverage can protect you as you transition to full-time freelancing. Make sure you have the right home, auto, and life coverage. That way, you pay less when disaster strikes.

Check your health coverage, too. You can get it on the exchange as a self-employed person. However, you might have better luck if you have a life partner with coverage. Run the numbers. There are few things as financially devastating as a major health event.

3. Retirement Investing

Once you move from working for the man to full-time freelancing, you don’t have someone else providing you with a retirement account. As a result, you could easily end up falling behind and short-changing your future.

As you set up your finances, make sure you are planning for retirement. This includes opening an account that allows you to make regular contributions. You can also invest in other ways. The important thing is that you have a long-term plan to build wealth.

4. Monthly Spending Plan

Do you know where your money is going? If not, you need a monthly spending plan. I hate the idea of budgeting every single dollar, but I do know that I need to have a general idea of where my money is going.

I like to direct my financial resources in a way that produces certain results. When you’re into full-time freelancing, you need to have an idea of what HAS to be covered first. Make sure the most important items are taken care of. If you have a really good month, put some of the excess aside so you can cover costs during a slow month.

5. Invest in Yourself

Once you start full-time freelancing, it’s easy to get consumed by working all the time. You worry about turning down work and soon things get out of hand. Part of staying on top of things is remaining healthy and investing in yourself.

When you take the time to invest in yourself, you’ll be more productive, healthier, happier — and make more money.

Miranda Marquit

Miranda Marquit

I'm Miranda and I'm a freelance financial journalist and money expert. My specialties are investing, small business/entrepreneurship and personal finance. The journey to business success and financial freedom is best undertaken with fellow travelers.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Categories

Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More