Freelancing Is The Best Way To Prevent Your Own Personal Recession

Let’s face it: the economy isn’t getting any better anytime soon. That means you might be looking at a possible recession in the future.

But don’t panic! We’ve got your back with these simple ways to prepare for a downturn without sacrificing all of the good things in life like vacations, shopping sprees, and trips to the movies.

Freelancing is the BEST way to thrive in this recession.

Takeaways
Freelancing offers a proactive approach to safeguarding against personal recessions.
By diversifying income streams through freelancing, individuals can create financial resilience.
Freelancing allows for flexibility and adaptability in an ever-changing job market.
Building a strong freelance network and client base is crucial for long-term success.
Freelancing provides an opportunity to pursue passion projects and explore new career paths.
Embracing freelancing can empower individuals to take control of their financial future.
Continuous learning and upskilling are essential for staying competitive in the freelance industry.
Freelancing requires self-discipline, time management, and effective communication skills.
It’s important to carefully manage finances and save for future uncertainties as a freelancer.
Balancing work-life integration is a key aspect of maintaining overall well-being as a freelancer.

Table of Contents

Stay On Top Of Your Finances

Set up automatic bill payments to avoid late fees. This is a simple task that can save you money in the long run, and it’s incredibly easy to do.

All you have to do is log into your bank’s website, go under “Accounts” and select “Automatic Bill Pay.”

From there, choose which bills are important for you to pay every month so that they’ll get paid automatically every time they’re due.

Create a budget with YNAB (You Need A Budget) or Mint so you can track your spending habits and make sure they don’t get out of control.

Even if this isn’t something that interests you right now, it’s still important since freelancing can be unpredictable at times, and having some kind of plan in place will help keep things running smoothly when things start getting tough financially down the road!

Freelancers need a reliable platform to find paid opportunities. Explore our comprehensive guide on safe freelance sites to discover trustworthy platforms that ensure timely payments and protect your interests.

Be Your Boss

Being your boss is a fantastic way to avoid the personal recession that can happen when you lose your job.

That’s because your mental state is directly tied to how much money you make and how motivated you are, so if you can work for yourself, then there’s no reason for a personal recession to occur.

Here are some tips for being successful at freelancing:

Set Goals

The first step in being successful as a freelancer is setting long-term and short-term goals. You want to know what the finish line looks like so that it’s easy to plan out each day with purpose and direction.

In addition, setting short-term goals will help keep you motivated on days when things feel overwhelming or frustrating (which happens often!).

Work Hard

It’s important when working as a freelancer not only because it increases productivity but also because those who don’t take initiative don’t get paid well either!

If someone else sees that they aren’t doing everything they possibly can while others are hustling harder than ever before their quality of work will suffer due to too low expectations set by others around them.

Who think less highly about what they do compare with those who go above and beyond every single day despite challenges presented by circumstances surrounding them.”

Use Budgeting Tools To Weed Out Unnecessary Expenses

It’s no secret that freelancers are often prone to overspending. The lack of a traditional paycheck can be immensely stressful, which leads some freelancers toward impulsive spending as a form of self-care.

But in the long run, this behavior will only compound your stress levels and hinder success.

It’s time to start thinking more carefully about your finances and budgeting tools can help! A good budgeting tool will keep track of your money and make recommendations based on your spending patterns.

For example, if you tend to spend more when you go out with friends than if you stay home alone on Friday nights (a likely scenario), then the app will alert you when it detects an anomaly in your spending patterns so that it doesn’t happen again in the future.

This way, there’s less opportunity for impulse buying while out at dinner or other social events; instead, when funds get low near payday (or before!).

Users should be able to use their budgeting apps as a guide for prudent financial management: tracking expenses carefully and setting aside cash for emergencies or unexpected needs before they arise.

Tracking key metrics is essential for maintaining a successful freelance career. Learn about the 20 crucial metrics every freelancer should monitor in our article on The Consistent Freelancer, and take your freelancing business to new heights.

Create A Rainy Day Fund

Since freelancing is a gig-based career, it’s important to have an emergency fund. You never know when you might lose a client or need to take time off for an unexpected reason.

You should save enough money to cover at least six months of living expenses, including rent and utilities.

You can build up an emergency fund in several ways:

Save 5% of each paycheck from your freelancing job (this will be easy when you start).

Ask for cash back after shopping at stores where you spend money regularly (like Amazon). Or use a service like Acorns that automatically invests small amounts of spare change in stocks and bonds.

Consider selling some items that are cluttering up your house like old clothes or toys your kids don’t play with anymore on sites like Letgo or eBay so that they generate cash rather than clutter!

Remote Work Options Can Save You Big Bucks

The cost of living and housing in different cities can be a major factor in deciding where to live, especially if you’re single and don’t have children.

For example, San Francisco is notoriously expensive due to its proximity to Silicon Valley and other major technology companies.

It’s one of the most expensive cities in the U.S., ranked #4 for both cost of living and housing prices in 2017 by CNBC (Cox Media Group).

You’ll likely pay $2,500 per month for an apartment in San Francisco compared to less than $1,000 per month for an equivalent apartment in Dallas or Atlanta.

With these costs taken into account during your freelancing career planning process, you may want to think about moving somewhere that has lower costs related directly or indirectly:

Rent costs; transportation costs; food costs; entertainment expenses such as concerts/movies/sports games/concert tickets;

Healthcare expenses like massages after spending hours sitting at your computer screen typing away on your latest article assignment (which should be rewarded with a beer when it’s finished).

Diversify Your Income Streams

This is one of the first things you need to do if you want to avoid a personal recession.

The best way to diversify your income stream is through working multiple jobs and/or starting a side hustle.

If that’s not an option for you, then investing in stocks and bonds is another great way to build up your assets so that they can save you from having a personal recession when the economy goes south again!

Consider Freelancing For Some Extra Cash

If you’re interested in getting into a new field, or just want to make some extra cash while you figure out your next move, freelancing is a great option.

You can pick up freelance work in nearly any industry that interests you.

If you are unemployed and looking for a job, consider freelancing on the side. There are plenty of people who need help with writing and editing projects.

And they’re willing to pay for it! Freelance work can be lucrative if done right and on the side.

Freelancers often have multiple different clients at once, which means that they’re constantly networking with new people each week.

This can open up many opportunities for them as well as giving them valuable experience working in various fields like marketing or design services.”

Freelancing has emerged as a lifeline for millions of individuals seeking financial stability. Delve into the inspiring stories of how freelancing has saved millions of people and discover the potential of this empowering career path.

Don’t Live Beyond Your Means

Most of us are guilty of this, but it’s not a good idea to spend more than you earn.

This is especially true if you’re planning to freelance because you won’t be getting a regular paycheck every month.

And many freelancers don’t get paid until their clients are happy with the work they’ve done. So if you’re living beyond your means.

It’s going to be difficult to pay bills while simultaneously paying yourself an hourly wage without dipping into savings or borrowing money from friends and family members who might not have much themselves.

And don’t think that borrowing money will solve all your problems either: most banks will want to see at least two months of consistent income before they’ll approve loans for borrowers with no credit history (which most freelancers don’t have).

In short: if you’re spending more than what comes in each month (or month-to-month), then find ways of reducing expenses so that this doesn’t happen again!

Make Sure You’re Getting Enough Sleep

Whatever your specific industry or role, there are a few things that you can do to ensure that you’re getting enough sleep and keeping stress levels manageable. These include:

Establish a sleep schedule. Most adults need between seven and nine hours of sleep to function effectively throughout the day, so make sure you’re getting enough shut-eye by setting aside time for it in your schedule.

If you’re having trouble falling asleep or staying asleep at night, try these strategies from Harvard Medical School’s health blog:

Avoid caffeine after 2 p.m., especially if it’s been more than six hours since your last cup of coffee or tea;

Don’t exercise within three hours of bedtime;

Get outdoors in natural sunlight during the day; and

Practice Relaxation Techniques Such As Meditation Or Yoga Before Going To Bed

Figure out how to save money on your taxes by consulting with an accountant or tax attorney beforehand and hiring them to help you manage your taxes each year.

If you’re a freelancer or even just an employee who gets paid in cash, you may not be paying your taxes. Or maybe you are paying them but not enough.

If this is the case, we can help! We have many years of experience with various tax laws and regulations and can assist you with any questions or concerns that come up during your tax season.

We also offer a unique service where we will do all of your taxes for you so that they are filed accurately and on time using our software which includes the latest changes in tax laws (this saves you both money and time).

We also provide advice on how much money should be left over after filing so that no penalties are incurred due to improper filings.

Again saving both money as well as potential losses from penalties due to late payments/filings etcetera.

Gain valuable insights from experienced freelancers who have mastered the art of thriving in the gig economy. Uncover the secrets and strategies shared in our article, Secrets I’ve Learned from Being a Freelancer, and unlock your full freelance potential.

Take Good Care Of Yourself And Your Mental Health, Which Will Help You Be More Productive

Exercise regularly

Eat healthy food

Get enough sleep

Take breaks and relax, staying hydrated is important for your mental health! Be sure to drink plenty of water throughout the day.

Take time to be alone; this helps clear your head and allows you to figure out what’s going on in your life.

There are benefits associated with being alone; it can help you become more self-aware and focus on what you need emotionally or physically at that moment in time.

It’s important to have a balanced work-life so that you don’t get burned out too quickly during freelance projects if they become stressful or overwhelming at times – take care of yourself first before anything else!

Use Zero-Based Budgeting To Manage Money Better

There are many ways to manage your money better, but one of the most effective is zero-based budgeting where you track every dollar that goes out of your account in a spreadsheet or app.

First, set goals for how much cash you want to have in each account at any given time.

For instance, if you need emergency savings and vacation savings separate from your general savings, designate how much should go into each account every month.

You might also designate a percentage of income that will automatically be deposited into each account so that there’s less chance of forgetting about it (e.g., 10% into my retirement fund; 15% into my emergency fund).

This kind of system helps keep money flowing where it needs to go without requiring thought or effort on our part.

Use An App Like Mint To Track All Of Your Different Accounts And Set Goals For How Much Money Is In Each Account At Any Given Time

Once you’ve started tracking your spending, it’s time to start setting some goals. You can use Mint to see how much money is in each account at any given time and set up automatic transfers and withdrawals that will help save you money.

For example, if I know I have bills coming out of my bank account every Friday and payday is on Wednesday, I’ll often transfer money from one of my other accounts into it on Monday or Tuesday so there’s enough cash for the week.

The same goes for paying off debt it may take a few months for the app to automatically transfer funds from one account to another when it seems that you’re making payments towards your loans (and possibly with interest).

But over time this process becomes second nature as well as helps ensure that you always have adequate financial security!

Recognize the signs that indicate you’re on the right track towards a prosperous freelancing career. Discover the 15 key indicators in our guide on signs you’re on your way to a successful freelancing career and stay motivated as you progress towards your goals.

Save Up For Retirement Without Thinking About It By Using Automatic Withdrawals Each Month Into An IRA

In addition to saving up for retirement and investing your extra money, you can also use a service like Acorns or Betterment to automatically invest your spare change that comes from daily purchases.

If you use a credit card or debit card for everything, then this is a great way to save up for retirement without thinking about it!

These services allow you to link all of your accounts (like checking, savings, credit, and debit cards) together so that every time you purchase any one of them, the amount will be automatically invested into an investment portfolio designed by experts.

Additionally, some of these services are free while others charge an annual fee ranging from $1 per month up to $10 per month depending on which features they offer.

Conclusion

The beauty of freelancing is that it teaches you how to be resourceful. And when you’re resourceful, you can take care of yourself and your family.

It also allows for flexibility in your schedule and the ability to work from home or anywhere else with an internet connection!

You don’t have as many layers of bureaucracy or red tape to navigate when you’re a freelancer which means less time spent on tasks that aren’t productive for your business goals.

Most importantly though, it allows people like myself who have been out of their career paths due to mental health issues or motherhood an opportunity to re-enter the workforce without having their qualifications questioned because they haven’t worked recently enough;

Which I feel is something I have felt personally discriminated against for after taking time off during my pregnancy due this past year for depression treatment.”

Frequently Asked Questions

Why Should I Freelance?

Freelancing is a great way to make money while also maintaining your schedule. You’re able to take on projects that interest you and are in control of how much work you take on.

How Do I Know If I Qualify To Become A Freelancer?

You need to be able to complete tasks, meet deadlines and communicate effectively with others. Most importantly, you must be passionate about what you do.

What Are The Long-Term Benefits Of Becoming A Freelancer?

The long-term benefits of being a freelancer include more flexibility in your daily schedule, increased income potential, and the ability to work from home or anywhere else that you choose.

Is There An Age Requirement For Becoming A Freelancer?

There is no age requirement for becoming a freelancer but some companies may prefer candidates who have at least some experience in the industry they are applying for.

Costantine Edward

Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.