Money Wise: Savvy Tips for Home-Based Freelance Workers

Everyone dreams of working from home; after all, who wouldn’t want to set their own hours and avoid the long drive to work every morning? However, it can be hard to transition from a regular income to working on a freelance basis, and it’s essential to get your money organised before you make the change. Luckily with increasing numbers of companies employing remote workers there are a lot of roles available for different skillsets, and if you’re an organised and entrepreneurial freelancer you could earn more than your usual salary. Here are a few money tips to help you make the change:

Get insured

Many permanent employees are covered by their work insurance, and going freelance means you will have to sort out cover for certain things. It’s a good idea to speak to a financial advisor, as they will be able to recommend products such as:

  • Life insurance
  • Private health cover
  • Terminal illness cover
  • Income protection
  • Liability cover

This is especially important if you’re visiting client’s sites or having other freelancers work in your home, as you can ensure everyone is covered and that you don’t end up with an expensive lawsuit on your hands.

Invest in yourself

Although there are many jobs that can be done with just a laptop and a creative mind, it’s important to invest in your business and yourself in the long term. Whether it’s new computer equipment, your first round of materials, or even a new desk for your home office, by looking for loans in Sydney you can invest in your business as well as helping yourself to take the venture more seriously and to motivate yourself.

Learn new skills

Whether you’re in a creative or a corporate field it’s essential to keep up with the demands of your career and not fall behind your colleagues. Make sure you keep up with everything happening in your sector, and prepare yourself for changes. This will often meaning learning new skills, and there are many places that can help you keep up to date, including:

  • Trade magazines
  • Trade websites
  • Professional organisations and unions
  • Conferences
  • Specialist events

This means you can keep on-track with your career and ensure your skills don’t become obsolete as you develop your business. You can then be sure that the jobs will keep coming in, and that you can build up your income as you learn more and more.

Charge what you’re worth

Although in the early days you might take on low priced freelance work to build up contacts and references, this can have quite a strain on your finances, and sooner or later you are going to have to work out your minimum hourly rate.

It can be tough for freelancers to work out how much to charge. Obviously if are too expensive then it’s going to be harder to find work, but undercutting the competition isn’t very profitable either. Look at how much other freelancers earn in your trade and measure your skills and experience against theirs. This will help you to come to a fair price for your services and ensure you can pay your bills.

Many clients will want to haggle with you on prices, so make sure you have a bottom line. There are often ways to let them feel like they’re getting a better price such as charging per project rather than per hour, but this will depend on your line of work and profit margins.

Freelancing gives you a lot of freedom in many respects, but can be tough on your wallet to begin with. Make sure you get your finances before you type up your resignation letter and you can ensure the transition is a lot smoother.

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