Chop Wood, Carry Water and Your Freelance Writing Business
February 26, 2008 by Anne Wayman
Filed under Jobs
Ugh, almost every time I get a check I put 10% in a savings account I call Prudent Reserve, 10% in another account I call Real Estate, and 12% in yet another account I call tax savings.
The Prudent Reserve is actually the account I use to bridge gaps in my income. It took about 4 years to get any money to “stick” there, but now it’s beginning to be a nice cushion. The Real Estate account was originally intended for just that. When I moved, I paid my first months rent and deposit out of that. The tax savings account is just that – savings for self-employment tax.
I’ve also got rent, groceries, and the usual expenses most of us have.
Why am I telling you all this? Because today I simply didn’t want to put money in savings! I wanted to go out and spend it… on a sofa and ottoman for my new place. I went ahead and put the money in savings anyway, hating every minute of it. I felt like a 6 year old who’d been denied ice cream or something.
I suppose putting the money in savings is an adult action. And I do like seeing the balances increase, but… but!
One of the results of all this responsibility is way less tension and much more freedom to pick and choose between jobs. And by this afternoon, I’ll actually be glad I’m saving.
Are you good at saving money?
Write well and often,
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Ugh. Kudos, to you friend. I have the benefit of relying on my husband’s income to provide most everything we need – mine just basically fills in the gaps from month to month and helps to pay off outstanding debt. And by “outstanding,” I mean that it is pretty outstanding. Blech. I would *love* to buy something frivolous.
However, I need to do better about saving to pay taxes, or that’s gonna get me in the end. Thanks for the reminder.
My first few sales I ran out and spent the money on a celebratory dinner or bookstore trip, but now that I’m trying to make freelancing a bigger part of my income (not just the odd check now and again) its very very hard to get out of the reward mindset!
Anne, I can save if the money coming in at the time is more sufficient than my current bills, but that isn’t always the case. Occasionally, I’m ahead — but at other times I am behind. This month is better than last, but I cannot say for certain that March will continue the streak or whether I’ll have to tap reserves.
Meg… I know the feeling… I now do small rewards, like lunch or something low cost but enjoyable.
Matt, believe me, I know! My experience says that if I keep putting at least 10% away, or 5% to start, even if I have to take it out the next day, my income grows to support that habit.
I’m afraid I’m pretty terrible about saving the money I make freelancing. I support myself with the money I earn at my day job, and use my writing money for indulgences. But you’re right, I know I need to start saving. Maybe that will be my project for this year.
It took me forever to get in the habit… now I do it all online which makes it simpler… and it is a habit… practice ;)
Anne, you’re WAY better than I am at saving. I put $4K in my 401(k) every year. That’s about it. I like your system, though. I think I’ll adopt it. It’s about time.
I had to crash and burn before I was willing to save that way… and even then I resisted, and still do from time to time… but when I don’t I love the peace of mind.
Lord. I’ve had to start putting cash in labelled envelopes. I hope it works. Savings? What’s that? Money is definitely going to be the hardest part of my infant push into freelancing…