Its been a while since I had a chance to post a discussion here on Outlaw Design Blog. Hell, it’s been a while since I have had a chance to post period. I apologize for that. I just got married and am trying to buy a house. So, as you can imagine, things have been pretty hectic around here. The whole buying a house thing is proving out to be a lot harder than I would have thought.
The problems in buying a house, especially in this day in age, is that my finances aren’t what they should be. Or at least thats what the bank thinks.
Like many other freelancers I’m sure, I’m guilty of not keeping up my books or tracking all my expenses. So, this got me thinking…how do all the other freelancers out there keep up with the “adult” side of life? What steps do you make to ensure you have a rainy day fund? How do you go about making sure your taxes get paid and you write off as much as you can? Do you have any sort of retirement account setup?
I’m sure many freelancers are either in the dark about how to take care of this sort of stuff or don’t think its worth while. As a result, I think it would be beneficial for everyone to share their thoughts and experiences on this matter.
9 Comments
It’s very common to ask these questions. Personally, if you do work for money you should keep track in an “ordered” way because this can only help you. I use quickbooks for the mac and it’s really a great product. I’m not only a freelancer, so I’m lucky enough to have a full-time job where I can take advantage of my 401k.
I actually just got a copy of Billings for Mac in an effort to organize my clients and my funds. I’m really liking the app, and truly enjoy using it.
I am also saving all of my receipts for work related purchases in a file, with plans on scanning them all in the future (We’ll see if that actually happens).
As far as retirement, I’m in the same boat as Louis. I also have a full time job with a 401k.
I do plan to go full time freelance and would love some suggestions on where and how to set all that jazz up.
I tried billings for a while, but didnt really like it. It seemed overly complicated when it didnt need to be. If you end up not liking it, try iRatchet. Thats what I settled on after not liking Billings.
The scariest thing moving into a freelance position are all of the things that you listed. I decided I am going to try and do this right. I keep all my work related driving in a notebook in my car, I have taken out a credit card just for my freelance business that way I am able to have it separated from my “other” expenses. For taxes I have picked a percentage and I stash this away for when taxes are due and this usually allows me to have some roll over for the future. As for retirement, I had an IRA through a previous employer that I contribute to monthly. Also, the best thing I have done is use software to track all of my jobs and expenses and I try and get everything entered weekly so it isn’t a huge (procrastinating) mess. And always remember that it will work out, that is the big thing to keep in mind.
Sounds like you are on the right track. Good luck with that! What sort of app or software do you use to help you with your finances?
Transitioning into Freelance can be scary. But, honestly - you just need to focus on what you’re good at and let other professionals (accountants, lawyers etc.) do what they’re good at. You should have that network in place before you decide to make the switch and plan for those expenses.
Don’t try (expect) to be good at everything business related.
I use Billings just like Chris. While it is fantastic for time tracking and invoicing, unfortunately, it is less than ideal for tracking expenses unrelated to specific projects.
I’m toying with the idea of using FreshBooks (free if only to manage myself) to track business expenses independent of client invoices, but haven’t looked into it much (ie, its just an amoebic idea floating in my head >.<)
I’d really be interested in how others cope.
I agree. Dont care for billings. Im using iRatchect right now and it works great.
I am really bad about keeping with expenses. In terms of health insurance, I have until August to find another plan. I either get hired on full time or I found that since I incorporated my design studio, that I might be able to get decent rates. Has this been anyone else’s case?