{"id":12235,"date":"2019-06-10T06:56:14","date_gmt":"2019-06-10T04:56:14","guid":{"rendered":"https:\/\/www.invoiceberry.com\/blog\/?p=12235"},"modified":"2022-09-16T13:45:01","modified_gmt":"2022-09-16T11:45:01","slug":"6-worst-financial-mistakes-to-avoid","status":"publish","type":"post","link":"https:\/\/www.invoiceberry.com\/blog\/6-worst-financial-mistakes-to-avoid\/","title":{"rendered":"6 Worst Financial Mistakes Freelancers Make And How You Can Avoid Them"},"content":{"rendered":"

Working full time as a freelancer sounds like the dream, right?<\/span><\/p>\n

You get to pick and choose your clients and work from the comforts of your home. You create your own schedule, and get paid for doing what you love.<\/span><\/p>\n

However<\/b>, this also comes with the struggles of being responsible for your own finances<\/span><\/p>\n

Without an employer-sponsor salary, managing your own finances can be hard. Especially if you\u2019re a full-time freelancer and don\u2019t get a steady paycheck – you often get stuck with having to manage your own finances.<\/span><\/p>\n

If you\u2019re a freelancer or you\u2019re planning to become one in the near future, it\u2019s essential you know how to handle your finances and have a solid plan for immediate and long-term funds. There are a lot of <\/span>questions<\/span><\/a> you need to ask yourself when looking at your spendings.<\/span><\/p>\n

Luckily for you, in this guide, we\u2019ll be looking at some of the most common finance related <\/span>mistakes<\/span><\/a> freelancers make and how to avoid them. <\/span><\/p>\n

Here are a few key mistakes you can\u2019t afford to make when working from home.<\/span><\/p>\n

1. Not budgeting properly<\/strong><\/h2>\n

Even if you\u2019re a sole proprietor as a freelancer, you need to be on top of your <\/span>budget<\/span><\/a>.<\/span><\/p>\n

But budgeting your expenses for the month when you\u2019re not living on a steady paycheck can be tough. The reason you need a budget in the first place is to better track the amount of money you have, what you need to spend, and what you need to achieve your goals. <\/span><\/p>\n

In other words, you need to be keeping an eye on your <\/span>cash flows<\/span><\/a> – where they come from, where they go and how to make sure they’re positive.<\/span><\/p>\n

So, if you\u2019re not sure where to start, you can apply the <\/span>50\/20\/30 budgeting rule<\/span><\/a> for your monthly earnings.<\/span><\/p>\n

This rule simply states that you should split your earnings as follows:<\/span><\/p>\n