3 Tactical Steps For Building Wealth As A Freelancer
/As a freelancer, your income is subject to ebbs and flows. This can make it challenging to set savings and investing goals, but there is a way. It includes elevating your money mindset, your money aura, and creating a tactical structure around making your money work for you. Money in the bank is just that. Money. Just sitting there. Usually accumulating a small amount of interest that doesn’t remotely keep up with yearly inflation. Money sitting doing nothing equals money losing value.
To secure your financial future your money must be doing the same thing as you. Working. But how can you actually set your money to work in your favor? Here are a few simple ways to get started on the path of building wealth as a freelancer.
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Set your budget
Making your money work for you involves telling it what to do. Setting a budget is creating a structure for where you wish your money to go. By getting your budget in place you can lay the foundation for paying yourself first, managing your expenses, and creating a path for building wealth. Your budget should include your fixed bills and variable expenses, as well as any potential income that you anticipate receiving in the future. Once the budget is laid out and you can see where your money goes, you can decide the next best financial decision given your situation. There are many free apps out there to help you do this. Simply pick the one you like and roll with it.
Boost your savings while paying down debts
Your first priority is having cash on hand. While many financial educators will prioritize paying off debt first, Money & Mimosas believes that your savings account is like an oxygen mask on a flight. You must secure your mask before assisting someone else. In this case, you must have a solid base of savings. You can build this while paying down debt, but you must not sacrifice the former for the latter.
Having said this, when building your business as a freelancer, it can be difficult to put money aside for anything. It can help to take on extra projects to build up your savings so you’re in a secure financial position. This could mean doing anything from putting up feet pics for sale to moonlighting as a waitress for a while. These are all just stepping stones that lead you to the bigger picture.
Invest where possible
Make sure to always do your research before you invest. One concept that you can research is the Dividend Yield Theory. The dividend yield is how much a company will be paying out each year in its dividends. The dividend yield is in comparison to the actual stock price of the company and is expressed as a percentage. The theory of dividend yield states that, with historical data, an observer can make a judgment as to whether or not a current yield is average or above or below which indicates if the yield likely to go back to a stable average in the future.
