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Financial foundation for freelancers

Get some great financial tips to help you get better control of your business and personal budgets.

Let's form a financial plan for freelancers today with some insights, relevant coaching and practical credit tips

Calling all freelancers: It's time to take control of your finances. This article delivers tools, support and lessons to help you reach your financial goals.

There are some things you may have to learn the hard way when you're freelancing, but managing your finances doesn't have to be one of them. Read on for information to help you build and keep a sound financial plan.

Breaking down Financial Foundation for Freelancers

This plan is conveniently divided into shorter segments so you can enjoy each on your own schedule. Subjects covered include:

Download these financial tools

Check out and download the Financial Foundation for Freelancers worksheet as soon as you can. It works as a guide and offers space to take notes as you get on the right track to forming a solid financial foundation.

Running a business on your own doesn't mean you are alone. Use the guidance in this plan to help you construct a budget and benefits to protect yourself and your business.

You don't know what you don't know. So, let's get started on building a financial plan that works for self-employed freelancers.

Freelancing: Getting a lay of the land

Freelancing offers a ton of variety and freedoms. Typically self-employed, freelancers have the opportunity to choose which projects or companies they'll work for, and which ones they won't.

Work can be hit or miss, so planning and budgeting are essential to help pay the bills through less busy times. Ultimately, the best way to handle the ebbs and flows is to plan.

The worksheet is a great tool and outline to take notes and formulate a plan that works for you.

Write out your financial goals

Where do you want your business to take you? Where do you see yourself in three, five or 10 years? How can your business help you live the life you've dreamed of?

Freelancer's tip: Goals are important — writing them out is even more so. Write out your goals and keep them visible.

Grab a pencil and paper to write out your goals, and be sure to assign some dollar signs and deadlines to each of them so you can keep track of how you're doing. A little bit of determination and diligence can help get you where you want to be, and create an added sense of fulfillment in your work.

You've got to keep them separated

Your name may be on your business sign, but when it comes to budgeting, keep business and personal expenses separated. One budget helps keep your operations rolling, the other helps you keep food on the table.

Both business and personal budgets need to consider three different types of expenses: fixed, variable and non-monthly. The Financial Foundation for Freelancers worksheet is a tool to help you itemize and calculate where your money needs to go.

Freelancer's tip: Build an emergency fund to help you stay afloat financially when the unexpected happens. Grow your savings to cover six to nine months of expenses — you'll rest better knowing it's there.

Don't neglect your benefits

Self-employment is hard work — there's no doubt about it. So, make a way for every dollar you earn to help you. Plan for expenses and work towards building a benefits package that can protect your future.

Health insurance, life insurance and disability insurance are all important to factor into your budget.

If you get sick, how will your bills get paid? Same question applies to if you're injured on the job.

Your life's responsibilities deserve your foresight and planning. From insurance to retirement planning, plot out what finances you'll need to keep all you work for and love protected.

Keep a solid credit score

The phrase "it takes money to make money" resonates with freelancers. Building a client base, traveling to and from your jobs, buying equipment or even just getting your feet on the ground all costs money. More often than not, these expenses require borrowing money.

Credit is a measure of your financial responsibility that has an impact on your business and personal finances. Given everything you have on the line to grow your business, good credit could be a great help.

Freelancer's tip: You can check your credit report at

Learn what factors impact your credit score.

Get in the know

Utilize the tools mentioned above and work on setting up your personal and business budgets.

Don't wait. Let's start on your budgets and planning today.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

Neither State Farm nor its agents provide tax or legal advice.

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