Tag: freelancers finance

02. Pay back your debt.

02. Pay back your debt.

Pay back your debt as fast as possible.

Freelancers Finance rule number 2.

Thank you dad!

Luckily that was one of the most important things my father taught me related to finance: Never raise a loan and get in debt. Or he also used to say if you want to loose a friend, lend him money. That might sound old school since we live in a capitalistic system which functions based on credit, interests and doing business with the intention of growth. It do not means you have to stay away of our economy. It simply means you have to be in the right position of this system.

debt

Debt is modern slavery

Slavery is a though word i know. There is lots of room for interpretation and debt is obviously not the kind of slavery happened in history. Slavery used to be or still happens in brutal ways. But nevertheless debt is a soft form of modern slavery. You have to understand this. I’ll try to explain it as simple as possible.

If you are in debt you owe money to the bank or to a person. While you can’t pay it back the amount of debt keeps increasing rapidly. They charge interests and they compound over years or months. So if you wait too long to pay them back the debt grows exponentially due to compounding interests. The longer you wait the more you owe and it increases parabolic.

debt slavery ivansnz

So it don’t matters what debt you have: student loans, credit card debt, small credits, small loans, they all compound over time due to credit interests you have to pay. So what’s the slavery now? We only have a limited time on earth and time is money. The more money you have the more options you have how you want to spend your time. But if you are in debt you are working your whole life paying back the debt. You have less options and less free time learn new things or enjoy life. That is why i consider it as asoft form of slavery because some people work five days a week the whole day and stay trapped paying back their debt.

The freelancers advice

Of course this is an advice not only for freelancers because it is a fundamental decision to live a free life. But especially for freelancers it is important to follow that rule. You don’t decide to freelance because you want to build a huge company focused on growth. It is a decision to be your own boss and do what you love most for whoever you decide it to do. You get it, its about freedom. Of course you can decide to go a riskier path take loans, rent equipment and do business with the confidence to earn high returns in the future. But if you fail you might risk your freedom and reputation.

Get the Freedom

This is why my advice is to pay back what you owe as fast as possible and avoid debt in any case. Work with the income you generate and if it is not enough lower your spending or consider to work on a side-job to stabilize your income temporarily.

This is how you build your freelancer business on a rock steady foundation and with small but sustainable steps you get to the freedom where you can decide when you want to work and on what projects you want to work.

freelancer finance

Get the freedom where you can decide


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Website: http://perfspots.com/

RECOMMENDATIONS
Here i get interest on my coins: http://bit.ly/btc_defi
Best cryptobrowser: https://bit.ly/fastest_browser
Here i buy bitcoin: http://bit.ly/btc_buy

Travel
Where i book hotels: https://bit.ly/riohotel
Where i book the cheapest flights: https://goo.gl/HRhxoy
Credit card with best commissions for travels: http://bit.ly/travelcreditcard
Editing software: http://bit.ly/editing_software

Disclaimer
This is no financial advice. Everything written is my opinion only and you should do your own research. Investing in Bitcoin and other cryptos, lending, DeFi, liquidity mining are high risk investments. You could lose everything, only invest what you can afford.
Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I link these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.

01. Spend less than you earn.

01. Spend less than you earn.

Freelancers Finance rule number 1.

“Spend less than you earn.”

It might sound easy and obvious but most people don’t understand this rule.

The rule is as simple as it sounds but for most of the people it is harder to obtain. This rule is relevant to freelancers since you dont want to operate your service on a loss.

Business metaphor

See yourself as a profitable business. As soon as you spend more than you earn your business is not profitable, you are not break even. ->You want to avoid an unprofitable business at all costs.

You can run your business or freelance service on credit and debt. There are solid strategies and some might work out. credit and debt are some how ways capitalism work but it is much more riskier than following the advice i am giving you in this post. Sending less than you make and having some backup is much more sustainable and you’ll be able to earn money with you passion for a lifetime. Do you really want to risk it?

Effects of spending less than you earn

  1. Pay back your debts as quick as possible. If you don’t have any: your personal finance is profitable and sustainable.
  2. You are able to save for a financial backup. This will bring you through hard times.
  3. You are able to invest into new gear or start a personal campaign for new clients.
  4. You are able to reinvest what you save and get a passive income stream.
  5. Your strategy is sustainable and set for long term plans.
  6. Freelance is less riskier.

How to?

You have to summarize all of your earnings and then summarize all of your spending. Earnings are easy for most of you. But if you have diversified income streams just add them together. Whats tricky are the expenditures. They are hidden in fees, taxes and debt. Go after the spendings like a detective and add them on a excel sheet or on paper, whatever you prefer.

Small but repeating costs are the most overlooked positions. They look harmless but add up together over time. Software subscriptions, gear leasing, Coffee to go every morning.

To get a proper comparison calculate the earnings and spendings for the same time frame. I recommend you to gather one month. Month after month. To get an overview summarize the total numbers per year. The anual numbers give you a better feel of what you spend a big chunk on because some monthly costs look small but gatheret they show how much it really is.

Now that you keep track and income and spendings are under control apply the rule:

Spend less than you earn. Always.

Youtube: https://goo.gl/rQaiFV
Instagram: https://www.instagram.com/perfspots/
Facebook: https://www.facebook.com/perfspots
Website: http://perfspots.com/

RECOMMENDATIONS
Here i get interest on my coins: http://bit.ly/btc_defi
Best cryptobrowser: https://bit.ly/fastest_browser
Here i buy bitcoin: http://bit.ly/btc_buy

Travel
Where i book hotels: https://bit.ly/riohotel
Where i book the cheapest flights: https://goo.gl/HRhxoy
Credit card with best commissions for travels: http://bit.ly/travelcreditcard
Editing software: http://bit.ly/editing_software

Disclaimer
This is no financial advice. Everything written is my opinion only and you should do your own research. Investing in Bitcoin and other cryptos, lending, DeFi, liquidity mining are high risk investments. You could lose everything, only invest what you can afford.
Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I link these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.

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Ivan Snz