Chapter 3: Budget Overview
Budgeting as a freelancer takes a level of attentiveness and an ability to keep business and personal finances separated. Organizing your budgets helps you reach goals and stay prepared for tax time. Budget building considers three expense categories: fixed, variable, and non-monthly.
Check out this conversation to pick up the details of budgeting as a freelancer. Download the Financial Foundation for Freelancers Worksheet and use it as a guide to help you lay the foundation of your budget.
The Financial Foundation for Freelancers Worksheet does a great job of walking you through how to write out your fixed, variable, and non-monthly expenses. Use it as a starting point to build a budget that helps you and your business grow.
Non-monthly expenses take awareness and planning. Take a minute to estimate how much these expenses will be, then divide what is owed by the number of months you have before it's due. Take that number and apply it to your monthly budget. Setting that money aside helps you build the amount you need. And, saving a bit at a time along the way feels so much better than trying to come up with the total amount just before it's due.
Emergency funds are important in your personal life and your business life. You work hard to build the business and life you want - put some of the money you earn aside to build an emergency fund. The goal is to build six to nine months of savings in order to cover essential expenses should anything happen to you.
This chapter's conversation covers practical budgeting wisdom that will help you organize your personal and business finances.
Your Chapter 3 Checklist:
- Watch the Budgeting Overview video
- Financial Foundation for Freelancers Worksheet
- Create separate budgets - one for your business and one for you