The Importance Of Protecting Your Money As A Freelancer

Photo by Faizur Rehman on Unsplash

One of the most important lessons that any freelancer has to learn is that they are truly in it for themselves. No one else is going to make sure that you’re taken care of and that you’re getting what you deserve for the work that you do. Similarly, no one is going to take care of your financial needs but yourself. As such, here, we’re going to look at a few tips on how you can protect your money, helping you on your way to building a successful business.

Set Payment Terms That Work For You

Freelancers and any business owners have to play a careful game of getting what they can and what they deserve for their work, while not scaring potential customers and clients off with a price tag. While you may be tempted to set low-ball prices to begin with, you could be setting a standard that’s hard to change for years after that, especially if you get recurring clients who are used to those prices. Set the payment terms that work for you, and try not to budge on what you’re truly worth.

Use Contracts To Seal The Deal

When it comes to the nitty gritty of how much you get paid, how you get paid, and what you get paid for, don’t rely on handshake deals alone. Use a contract template to make sure that you can set your terms in stone. This includes the amount paid for what labor is provided, but also any payment schedules, late fees, or deposit requirements that you intend to operate under. Not only does it make sure that you get paid for the work that you’ve done, but it prevents clients from pushing scope creep, asking for extra work without paying for it.

Use Invoices To Get Paid On Time

While contracts can do a lot of the heavy lifting to make sure that you’re getting paid for the work that you do, a lot of freelancers find that some clients can be slow to pay, which can put their cash flow in danger. Invoicing software is essential to help you streamline billing and ensure timely payment. Not only are invoices easy to send and contain all the details necessary to pay you, but they can be tracked, so you can send reminders of when payments are due or even see when clients are late, which you may decide to charge a fee on.

Manage Your Money With Care

Beyond making sure that you get the cash that you should, it’s also vital that you manage that cash as best as possible. For one, it’s always recommended that you separate the personal from the business when it comes to finances. If you have frequent outgoing costs, then investing in spend management tools is important to make sure that what’s going out doesn’t being to tip the balance over what’s coming in.

With the tips above, you can make sure that you’re getting the pay that you deserve, while also using it in a way that keeps your business sustainable.