Freelancing often means dealing with an unpredictable income. Some months are great, while others might be slower.
Let’s share our experiences and advice to help each other thrive financially!
Starting my fractional CMO consultancy taught me the importance of financial planning in freelancing. To handle income fluctuations, I recommend creating a detailed budget and consistently setting aside a percentage of earnings into an emergency fund—aim for at least three to six months of living expenses. Diversifying income streams and maintaining a steady pipeline of potential clients can also provide financial stability. Let’s support each other by sharing strategies that have helped us navigate the financial ups and downs of freelancing!
My approach is quite similar to Rudolf’s. Each month, I set aside a fixed percentage of my income as savings and ensure that my essential insurances (health, car, etc.) are in place to cover any unexpected situations.
I split my savings between a readily accessible cash buffer and portfolio investments. My goal is to always have enough in the cash buffer to cover 6 months of living expenses, ensuring I’m prepared for any unforeseen circumstances.
I realised that having a solid strategy in place makes it easier. I focus on these key areas as well:
Startin with emergency fund: I aim to save at least 3-6 months’ worth of living expenses. This cushion gives me peace of mind during slower periods.
I also create a monthly budget based on my lowest expected income, not my highest. Anything extra goes into savings or investments.
These strategies help me stay on top of my finances and reduce stress, even when work slows down.
I totally agree with the points mentioned here! One thing that has helped me a lot is automating my savings. Every time I get paid, I have a portion automatically transferred into a savings account. This way, I’m consistently building my emergency fund without even thinking about it.
This is the best tip to be honest! This way that money “doesn’t even exist” 
So I can’t spend it
Having multiple sources of income is a good way as well. I know it sounds easy on paper, but its worth investing into side projects.
I can very much relate to this one. The number one thing I told myself when I left traditional employment and started out freelancing was to always make sure I was saving up in my business - enough to last me at least three months without any form of pay. This would be the equivalent to the standard notice period in a traditional employment sense.
I also keep a tight budget overview and hold separate accounts for taxes and VAT payments to ensure money is set aside for those purposes before I think they’re “mine to spend”.