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Why It's Tough For Freelancers To Plan Their Financial Future

by Wallace Hanson

When it comes to freelancing, the financial future doesn't sound as promising as it does for those working at a corporation. A financial planner could help you, the freelancer, build a better and more stable future. Deciding to go freelancing isn't for everyone. It involves managing the time, being organized, and always being ready to face different kind of impediments. It may be tough, when doing freelance work, to find clients.

You'll Have to Accept Less Money

When starting to freelance, many don't have the reputation. In case you decided to quit your job as a programmer at a good company and go freelance, get ready for a pay cut. Clients out there haven't heard a thing about you, what you know, and what your work style is like. It may take some time until you hook your first client and establish a reputation. Money is sure to come, but expect it later.

You'll Have to Contribute Estimated Taxes for Yourself

Lots of freelancers find it difficult to make tax contributions after there is no longer a boss or an accountant to take care of this issue for them. Not to mention in the beginning the money is so tight, no one's in the mood to think of contributions anymore. However, as soon as you establish yourself on the market, it is essential that you pay your taxes correctly in order to remain a valuable and financially settled member of the society.

Negotiation Among Other Things

As a freelancer with no financial planner, you'll have to be able to set a services rate for your time. This involves knowing how to negotiate. If you don't have any negotiating skills at all, take some classes and learn how to value your time. There are many things to consider when establishing your hourly rate: studies, experience, past projects. The idea is to not sell yourself for low prices, especially if you are good at what you are doing.

Manage Your Time

Time is money. This is completely true. Maybe you gave up your 9 to 5 job to have a more permissive schedule, but this doesn't mean you can sit all day and wait for the money to just drop down out of the sky. Freelancing involves time management as much as corporate work does. The only thing in freelancing is that you get to work at the hours at which you want to work, and not when someone tells you to.

Keep Track of Everything

How can you plan your financial future when you aren't really sure how much money you're making? A software like Quickbooks will help you keep track of income and expenses so you get an accurate picture of how much money you have to work with.

It is important to secure a financial future for yourself as a freelancer. If you really don't know what to start with, contact a financial planner and get a good plan going. For more information or assistance, contact companies like Blueback Accounting.