Tuesday, August 9, 2011

STEP 7 of 10: Start A Savings

Okay I know what you are thinking... you can't sock away 6 months of backup cash before becoming a full-time freelancer - trust me I know the feeling. But, understand that for your own sanity it's good to have some savings before taking the leap.
I recommend starting a savings account and putting all of your income from freelance gigs in there. Once you build that up you may want to try working part time at your current job and part-time at home doing your freelancing once things start to pick up.

Another tip for growing your savings is penny pinching. I'm sure we've all heard this before but I will say it again - there is always a penny that can be pinched whether it be from eating out, buying a pair of shoes or going out to the movies. You'd be surprised at how much savings that is every month! 

MY THOUGHTS: "The very first thing I did to start saving money prior to freelancing full-time was to make a list of where my money was going. By just doing that I was able to cut cost dramatically."
For example:
  • Cut cable and switched to Netflix. Savings = $50/mo.
  • Cut land line and switched to Skype. Savings = $20/mo.
  • Planned meals and clipped coupons. Savings = $75/mo.
  • Stopped buying bottled water and switched to Brita filter. Savings = $12/mo.
  • Cut back on Starbucks and got a french press. Savings = $15/mo.
Total savings per month: $172!
Be patient, get prepared and you'll know when the time is right to take the leap.

< Step 6: Choose An Office Space
Step 8: Developing Your Financial Plans – Get Over The Notion That Artists Have To Starve! > 

For questions on specific topics or if you would like more information on anything related to the above post please feel free to contact me and I will get back to you as soon as possible or if it is a FAQ I will create a new post :)

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