One of the things I know as a freelance writer working from home is that a steady and traditional "paycheck" is one of those things that you cannot rely on. Sometimes it can be a hassle getting paid for your work at all! There will always be clients that try to stiff you, or who disappear as soon as you send an invoice.
But there are a couple of things you can do to try and come up with some sort of a work from home "paycheck":
1. Set aside money when you have a really good month. When you work from home, it is important to have a really big emergency fund. Because freelance writer (or any other freelance work) income is anything but steady, you need to plan for the lean times. If you make bank this month, see that you set a good portion aside for next month — just in case.
2. Figure out a regular "paycheck" schedule. This is a great idea from Tamara Berry at Freelance Parent. She suggests that you figure up your annual income (you can use your tax return) and then divide it by 12 to get a "paycheck." You can live off this money each month, and use the rest for your emergency fund.
Do you have any ideas for creating a steady "paycheck" when working from home?
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Thanks so much for the link to Freelance Parent. I think we'll be putting your suggestions to work ourselves!
Posted by: lornadoone | August 26th, 2008 2:57 pm |