On May 1, 2014 I will be celebrating my fifth year as a full-time freelancer. (Whoohoo!) The longer I freelance the more often I am approached by others for advice on how to get started. While many things will differ depending on your type of freelance business, there are at least five things that I would recommend to anyone. The first being to start off your business knowing that there will likely be a lot of ebb and flow in your income. You will need to build up a significant amount in your savings to handle the leaner moments during your first year of business.
Three Months Worth of Savings
If you already have a full-time job, consider taking on some extra freelance work, in addition to your current job, in order to build up your savings account before you quit. There is no magic amount that is the right amount to get started – a good rule of thumb is to create a budget for your average monthly costs and then save up enough for three times that. Continue reading