If you are tired of the daily grind and ready to pursue your passion for writing, you may feel that now’s the right time to jump into freelance writing. Freelance writing can be a very lucrative career, especially if you snag a steady stream of high-paying assignments. However, the income isn’t always consistent, and many times, it’s feast or famine.
But, don’t let the financial reality scare you back to the office. The truth is, many people are able to make a career of freelance writing – where they’re able to sit home in front of their computers and be creative.
Like any major career transition, there is a wrong and a right way to move forward. You may feel that a leap of faith is the best approach. You know, where you quit your job and take a chance. This may work for some. However, if you don’t want to return to the workforce six months after launching your career, you need a financial plan.
The bills don’t stop after starting a freelance writing career. And yes, things may be a little tight in the beginning. But with a financial cushion and self-motivation, you might just make it work.
Here are three ways to prepare your finances:
Don’t Quit Your Job
Yes, you’re frustrated. And yes, your boss is getting on your nerves. But even if you have the skills and the self-discipline to be a freelance writer, it can take several months to build a steady stream of clients. For a smooth transition, build your client base while you’re still employed. Things might get a little hectic as you juggle freelance writing assignments with full-time employment, but when you’re ready to quit your job, this approach ensures steady income.
Build a Savings Cushion
Don’t rely on your emergency fund to stay afloat after quitting your job. This account is for emergencies only. Before launching your freelance writing career, start a separate bank account – your transition fund. Since you’ll be completing freelance assignments and working full-time in the beginning, take all of your freelance writing income and deposit it into this savings account. If you’re sick of the low interest rates that banks are currently paying, check out bank interest rates for CDs. Whatever you decide, make sure that you have the extra cash to pull you through the months where work may be slim.
Don’t Create Extra Bills
To make the transition from full-time worker to freelance writer easier, you must relinquish the sources that take your money in the first place. Try to pay off your bills as soon as you can. Develop a plan to pay down your debt. The less you owe, the easier it’ll be to start your new career.
What tips do you have for someone who may be thinking of starting a freelance career?