Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.
- Many freelancers have taken a financial hit since the start of the pandemic, and most government relief has run out.
- If you need to increase your cash flow to save or pay bills, financial planner Ben Henry-Moreland recommends looking first at your spending to see where you can cut back.
- Then, look into any government programs that are still available, such as the EIDL, and consider reducing your health insurance costs if you’re able.
- You can also reach out to your network to get more work, and reduce your quarterly tax payments to the IRS if your income has gone down.
- Get Personal Finance Insider’s free guide to financial planners »
If you’re a freelancer like I am, you know just how hard it can be to manage your money. For one thing, budgeting on an inconsistent income is like taming a beast in the wild. And trying to save? That can feel like a lofty aspiration to spot Big Foot. Take into account the financial curveball that the pandemic has thrown at us, and it makes saving that much more challenging.
Now that some of the government-funded programs made available to self-employed folks because of COVID-19, namely the Paycheck Protection Program and expanded unemployment benefits, have lapsed, freelancers might feel even more squeezed financially. So how can you save — or even just meet your basic financial needs — despite all these hurdles?
Ben Henry-Moreland, a financial planner and founder of Freelance Financial Planning, has some advice.
Focus on your spending
The only way to manage inconsistent income is