Advice For Independent Workers To Manage Their Money

Becoming an independent worker or a freelancer seems to have many benefits. You are free to work however and whenever you want. You have the flexibility to change your schedule to suit yourself best. You have the power to be your own boss.   

Being an independent worker also means handling financial obligations all by yourself. When you are an employee of someone, they usually handle stuff like invoices, taxes, and insurance, but being a freelancer or independent worker means handling it all by yourself, with no one watching over you to help. Staying on top of your finances can get hard when you must worry about so much more in addition. 

If you are or are thinking of becoming an independent worker, you might be worried about how you will manage your money. Don’t worry. We get it and are here to help. Below are a few money management tips for independent workers. 

Money Management Tips For Independent Workers

Calculate Your Expenses

Do a monthly check on your expenses and your savings. Calculate all your expenses, including your rent, taxes, and any equipment you might use for your job. As an independent worker, your earnings will fluctuate, so calculate an average of your monthly earnings and how much you will have to spend to know where you stand.  

Add up your fixed expenses like rent and utilities and your variable expenses such as commuting and groceries and see how much money you need monthly. This doesn’t take up too much time and should be done in regular intervals – at least once every three months. You will have an understanding of how many clients’ minimum you would need to take to cover your expenses. 

Organize Your Finances By Separating Your Accounts

Separating your personal and your business account will make your money so much more manageable. Your business account should be where all your money ‘lands.’ It is where all your client payments should go and stay. From this business account, you should pay yourself a ‘salary’ into your personal account.  

Think of it this way, your business account is your ‘employer,’ and you earn yourself a steady salary from this employer. Decide on a minimum amount you require that will cover all your regular expenses (the last point we talked about will help in this step) and only transfer this amount to your personal account on a monthly or bimonthly basis.  

This way, you will always have money in your business account, and you will be able to set up and expand your business. And you will also be earning a steady salary for yourself that you can spend however you want. Overspending from your personal account won’t affect your business finances and vice versa. 


 When just starting out, most people forget about taxes. Make sure you know how to calculate what you owe based on your state and your tax bracket. You should review your taxes at regular intervals throughout the year to stay on top of it and ensure you don’t get any surprises when tax season comes around.  

If you are unsure how much you owe and how to calculate it, we recommend hiring a professional to make sure you pay what you owe and avoid any fees or penalties. 


Being an independent worker or a freelancer, you will have some months where you might not earn as much, or you might have a few clients that never pay on time. This is why you need to save! You should save any extra money you earn. Maybe you just got a big win? Save! Had an amazing month with a higher number of clients than average? Save! 

As an independent worker, you need to worry about saving a lot. You never know what can happen, and you can experience times when you get no business. You will be glad you saved in these times. Having some money saved up can also save your business during periods of low income. 

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