One Friday a month we
look at financial tips and advice for freelancers. (They’re slanted toward the US, so if you’d like to see or share insights from another perspective, just reply to this email!)
You’ve probably heard the advice to have six months of business expenses saved
as a freelancer. That’s what I’ve always lived by. But this past week, I ran across even higher numbers.
It was always saving 10% of your profits, with a minimum of six months operating expenses.
This was in addition to taxes.
If you pay taxes monthly (which I
do), there isn’t that much difference...but what I didn’t do, is keep going after I got to about six-eight months of expenses. In the future, I’m going to set targets for investing and be more proactive about automating all of this.