Freelancing can be an exciting and rewarding path for many people. You get to call the shots — accept or decline assignments, enjoy greater degree of flexibility in your schedule, and develop diversified streams of income. But there are also many things that freelancers have to worry about: health insurance, invoicing, saving for retirement, etc. Here are 10 money moves you can make to ensure that your freelance career is well-positioned for success.
Have an emergency fund
Most personal finance experts recommend 3-6 months worth of living expenses stashed away, but for freelancers, it might be more prudent to aim for a bigger, 6-9 months emergency fund. Jamie Beckman, New York-based freelance writer and author of The Frisky 30-Day Breakup Guide, saved about seven months' worth of money in an emergency fund before she took the freelance leap. "In retrospect, I'd probably recommend saving more than that just in case," said Jamie, "I was able to get a good amount of work right off the bat, so I haven't been dependent on my savings (knock on wood!), but having a healthy financial cushion buys me peace of mind. I also have a few mutual funds that I can cash out in an emergency, but I'd rather not dip into those unless my situation is dire."