Making Serious Money as a Freelancer in the Recession

Tue, Apr 13, 2010

Pricing, Skills

Making Serious Money as a Freelancer in the Recession

Freelancers have a unique opportunity in their work lifestyle. This is the ability to work as much or as less as you want. Being a freelancer may mean that you can work in your pyjamas and start work at any time, but it ought to mean more than that. You should go beyond this beginners idea of freelancing and realise that being a freelancer actually means that you have the freedom to work harder and go further than you would have in employment. All freelancers have the opportunity like all businessmen of making money. The recession has mean that freelancers have lowered their hourly rates and become worried about their financial affairs. As we have already discussed, you should increase your hourly rate, but what should one do after that?

Saving

When I was younger I read many books and of all the books which I read about finances they all sang one similar song, that was “the 10% Rule”. This rule tells you to take 10% of your monthly income and save it away. This automatically means that you are saving money. The problem for freelancers is that they don’t have a fixed monthly income.

You could just save 10% of any money which you make, but then how should you deal with the “Feast-Starve cycle”? The Feast-Starve cycle is a problem which faces many freelancers, it means that you will get business and lots of it and you will “feast” and then you will get absolutely no projects or clients and “starve”. The 10% saving rule falls flat on it’s face if there is nothing to take 10% from.

A better way to save money for freelancers is that to save more than 10% when enjoying the “feast” of business and then to use that 10% during the “starve” stage. The problem, however, still will persist. I would recommend saving whatever you can from your income comfortably and then…

Invest in yourself

Once you have saved up your money, you need to invest this money somewhere. It is not sensible to spend that money, when it is like a chicken laying golden eggs. You could invest this money into the stock market or into a private business, I would advise you not to and urge you to invest in yourself.

Use this money to market your services, use the money to set up a project of your own online in order to have another source of income. The only person you can honestly trust with your own money, is yourself.

Don’t spend the money

When you see a good return from your business, never just take this money and spend it. This is like a chicken which lays silver eggs. Reinvest the money at least once. When the money has been around another circle you can spend it, even though it is a chicken laying bronze eggs.

This method will ensure a wealthier future, but it is hard and requires a lot of patience. Don’t be fooled that this is one of those silly “get rich in 30 days” deals. This is a genuine tried and tested method which all the wealthy people have used.

Now all that talk of chickens has made me want to eat some! Subscribe to our RSS

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This post was written by:

- who has written 54 posts on Freelance Apple.

Shoaib Hussain is an web entrepreneur who was formerly a freelancer. He is the main writer and owner on FreelanceSchool.com and aims to enlighten young freelancers with his vast experience and deep knowledge. Shoaib Hussain also spends his time giving advice to budding freelancers and helping web businesses.

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10 Responses to “Making Serious Money as a Freelancer in the Recession”

  1. Allen Taylor Says:

    Nice writing. You are on my RSS reader now!

    Allen Taylor

  2. Jordan Walker Says:

    I really agree with investing in yourself: books, equipment, and education.

  3. Omar Shy Says:

    Wow, this is really helpful information, thanks.

  4. Eve Says:

    Great thoughts. Reinvesting in your business the first two times around is very wise. After all, you have to keep up with knowledge and equipment. Thanks for the insight.

  5. Christos Chiotis Says:

    Reinvesting is probably the best thing you can do to yourself! Only the patient enought will survive!

    Nice reading!

  6. vil Says:

    Yes I agree, reinvesting in your self is always good, but make sure you work on the things that will help you motivate your self and enhance your confidence.

  7. SShah Says:

    Recession or not, freelancers should save money at all times since there is no promise of stability in one’s freelance gig. You don’t know when the old project will stop and when you’ll get new ones to replace it. I think the best amount you can save should be enough for 3 months, which will give you this time to find something new just in case you suddenly run into a ‘dry spell.’ I agree with you that one must invest in oneself and take the time to improve his/her skills to be ahead of the game. Thanks for the lovely insights!

  8. Colton Diaz Says:

    economic recession is always a bad part of history, we must avoid it at all cost“`


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