Five reasons freelancers need more than one income stream

Posted on: February 23rd, 2014

If you are freelance, there are a number of reasons why your bank account can end up with nothing in it:

  1. Your clients are slow to pay you
  2. You experience the classic feast and famine syndrome
  3. A client has gone bust, owing you money
  4. A client paid your invoice into someone else’s bank account
  5. You just lost a couple of regular, well-paying jobs

All this has happened to me over the years.

An overdraft can help tide you over when cashflow is tricky but they can be expensive. And your bank might not offer you a sufficiently large overdraft.

An alternative is to find more than one income stream.  Here are some ideas:

- Sign up to online affiliate schemes
- Launch and sell an online course/information product
- Write an e-book and sell it on Amazon
- Sell advertising on your blog/website (if you have lots of traffic)
- Run face-to-face workshops
- Run paid-for webinars
- Get a part time job (eg: pet sitting, working in a bar etc)
- Join a direct selling scheme/network marketing company
- Find ways to monetize your hobby (eg: if you are a crafter)
- Become a coach or tutor
- Sell goods on eBay

Make Sure You Are Paid On Time

Posted on: February 18th, 2013

Welcome to guest writer, Kay Daniels, of Daniels Accountancy

It is vital that late payments do not disrupt your cash flow and harm your business. Before you start doing business with a new client, remember the following:

1. Invoices are payable immediately

Ensure that your terms of business clearly state that invoices are payable immediately.  As a courtesy, you may wish to accept 30 days credit but that is not documented in your terms of business.  Most businesses assume 30 days as the norm, but if your invoices state that the invoice is payable immediately, there is a good chance that it will be paid earlier than the 30 days.

2. Ensure your Terms of Business have been signed by your client and returned to you

Where did all my money disappear to?

Posted on: February 11th, 2013

Welcome to guest writer, Mary Waring.

It’s an all too familiar feeling that no matter how much income you earn in a month, it all seems to be gone by the end.

It seems to be one of the great unexplained phenomena. You have a cracking month, in fact your best for a few years……..but you still don’t have any funds in your bank account at the end of the month.

The technical term is “expenditure creep”. For the non technical amongst us, it just means that you spend however much income you have coming in! Income goes up and expenditure goes up with it, without you even necessarily being aware.

Keep a note of your spending

If you want to start some form of savings plan but don’t think you can afford it, have a look at what you’re spending. Chances are there is surplus there that can be cut without it having too much of an impact on your lifestyle.

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Freelancers Can Do All Right – Even on Insurance Deals

Posted on: January 18th, 2013

Being a freelancer, being our own boss, has appeal. It appeals to our sense of self-worth, it can seriously boost our self-esteem and we get to take real pride in our achievements. This applies if you are a newbie, someone just starting out on the freelance journey, or have been operating as such for many years.

But one thing which frustrates freelancers is hearing about employed people who can get access to certain insurance policies at a reduced cost. It happens when a company arranges a bulk discount. You being just ‘you’ can hardly apply for such a scheme. It sounds unfair and probably is.

There’s a strong argument which states that most freelancers need insurance. We need it for the usual things like life cover if we have a family to support and we definitely need it as income protection.

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New year, new laws…a brief guide to some of the changes

Posted on: January 8th, 2013

Welcome back to guest writer, Mark James. The legislation changes outlined in his article are only applicable to UK freelancers.

First off, congratulations for surviving all those 2012 Armageddon-based predictions. What a load of nonsense that turned out to be.

That said, don’t take that bigger sigh of relief just yet, as an abundance of new HMRC and government legislation is set to be unfurled this year, which, if you don’t get up to speed on, could have a cataclysmic impact upon your finances.

Thankfully, you’ve got finance bods like me to make things clear as day. Well, as clear as it’s possible to make this sort of thing.
So, if you’re a little lost, here’s an overview of some the changes that might impact on your freelancer finances this year…

January – Child Benefit changes

21 easy money-saving tips

Posted on: December 3rd, 2012

In today’s straitened times, with clients cutting their budgets, utility companies increasing their bills, higher food prices and a general squeeze on our wallets, here are a few money-saving tips to help your well-earned money stretch that little bit further.

Most of these are common sense but, hopefully, will serve as a reminder to you:

  • Get in the habit of buying your fruit and vegetables from markets as they are much better value than supermarkets.
  • To avoid impulse purchases, write a shopping list and stick to it.
  • Go for supermarket own-label items as they are cheaper than branded goods (and don’t usually taste any different).
  • If you have flatmates, introduce a kitty for buying the essentials so you don’t have several jars of Marmite or five boxes of Weetabix in the cupboard.