The Freelancer’s Guide to Avoiding Financial Facepalms

It wasn’t until I was about…let’s see…six months ago, that I realized I was financially illiterate. I did this to myself really. I chose to be a career creative; opting for an English and Theatre degree instead of a more financially lucrative path in college. I mean, nobody warned me that "To budget, or not to budget" would be the real question I'd be grappling with in adulthood.

But hey, who needs to understand compound interest when you can recite Shakespearean soliloquies, right?

Before y'all come at me, I do not come from generational wealth–or even generational wealth knowledge for that matter. My dad was college uneducated, but managed to support five children through multiple lucrative careers. By the time I got out of college, I had no daddy’s money cushion and had to figure it out, for the most part. My mom was nothing but a mom her entire life, and coming from more traditional stock, wasn’t raising her daughters to be financial wizards either. So, I guess you could say I inherited a portfolio of financial cluelessness. 

But hey, every stock has its ups and downs…RIGHT?!

Since venturing into the realm of freelance writing and content creation, I've encountered the practicalities of managing my finances head-on. I'll admit, there were moments of naivety, like mistakenly viewing a credit card as a convenient source of free funds until the reality of interest rates hit me. And as for student loans, I quickly realized that ignoring them doesn't make them disappear; they're very much a part of my financial landscape. As for budgeting, well, let's just say my approach was more hopeful than strategic – I'd often find myself crossing my fingers and hoping for the best until the next paycheck arrived.

While the journey to financial literacy is still ongoing, I’ve managed to learn a few things about being a freelancer and not just willingly submit to the chaos and confusion I deal with on a month-to-month basis. Here are some things I learned navigating the unpredictable terrain of freelance life, how to avoid those financial facepalms, and get your finances (somewhat) on track:

1. Embrace the Feast and Famine: Freelancing often comes with irregular income, and that's okay. Instead of panicking and doomsdaying to your mom, use it as an opportunity to hustle even harder. And when the feast comes, don't blow it all at once – stash some away for the inevitable week/month of famine. One of the best pieces of advice I’ve received is, “everyone struggles”–don’t think you’re alone in tightening your belt or not being able to afford an expensive trip. Your time will come, and when it does, that trip will be so much sweeter because it’s earned.

2. Know Your Worth: It can be tempting to lowball your rates or accept bare minimums, however, undervaluing yourself not only hurts your bottom line – it also undermines the entire industry. Remind your current employers/clients of your worth and don’t be afraid to petition for a contracted or expected baseline amount of work a month. Though money might seem enticing, don’t be afraid to say no to things not within your verticals. 

3. Invest in Yourself: As freelancers, our most valuable asset is ourselves. Invest in your skills, your network and your well-being. Take stock in what you pitch and constantly improve on your skills so that your arsenal is consistent and desirable. Investing in yourself doesn’t just mean just investing in your craft. Be kind to yourself. Buy yourself a special treat (within budget, obviously). Take the long scenic walk. Your mental health is more important than any paycheck.

4. Don’t Be Intentionally Clueless: If you have no idea about finances, talk to someone who does. Whether that’s your financial literate friend/partner, a financial advisor, a podcast, or a self-help novel. Track your monthly income and come up with your own set of non-negotiables. See what you can widdle down–coffee at home might not taste as nice, but it sure is a money saver in the long-run. Speaking of partners–be money transparent with them. I loved a recent Girls Gotta Eat episode with Jason Tartick, “If You Can Have Sex, You Can Talk About Checks.” 

5. Diversify Your Income: Relying on one source of income is risky, especially in the unpredictable world of freelancing. Look for opportunities to diversify your income streams, whether it's taking on different types of projects, offering additional services, or exploring passive income opportunities. Whether that’s dipping your toes into affiliate marketing on TikTok, selling an online course, or becoming an instructor–everyone has a survival job. No shame in needing to lean on it from time-to-time.