How do Freelance Writers Save?
As a freelance writer, you are self-employed. This means that you do not have access to company sponsored benefits such as health insurance and a retirement plan. For this reason, you need to be in charge of these areas on your own. One important detail to consider is how you can save for both short term goals as well as your retirement. After all, freelance writers have the right to retire just like everybody else!
Although I am not entirely sure if I am on the right path, I have several accounts that help me to save as much money as possible. At this time, I have one personal checking account, a business checking account, two savings accounts, and an IRA that I manage myself. As you can imagine, the business account is used to pay business expenses. The personal checking is for personal expenses, and the savings accounts are for, you got it, saving! As far as the IRA is concerned, this is something that I have been contributing to for a couple years, and as long as I keep up the pace I should be set in 40 years or so.
Freelance writers often times find it difficult to save money because they do not have a set income that they can rely on each month. For instance, I may earn $5k one month and $10k the next. How do I know where the money should go with so many things changing month in and month out? Simply put, this is something that you will have to get used to on your own. There is no denying that it can be difficult to deal with a fluctuating income. But once you have some money in the bank and get a good feel for your career, you should become more comfortable.
Just like anybody else, freelance writers need to save money. But on the same token, many of them struggle. The best advice I can give is to organize your finances, and do your best to become comfortable with an income that can and will fluctuate.
