For the last few years, freelancing has been a tip-of-tongue topic among creative workers. Even if we’re not self-employed full-time, a lot of us are balancing side-projects in our night and weekend time. Those extra gigs add up for the overall economy, but how do you know when you’re financially stable enough to make the leap to full time?
There’s plenty of advice out there – most importantly, that you should have plenty of savings just in case you hit a lean patch just as you give your two weeks’ notice – but the best way to know for sure if you’re ready is to get real about how much you’ll need to spend, and how much you’ll need to be raking in.
Often forgotten costs like health care, licensing, taxes, and other business essentials usually accounted for by employers, can easily get lost in the excitement you may feel about starting your new full-time freelance life, which is why we created this freelance budget example.
Sometimes, the most helpful thing can be to see how much other people spend (these figures are all based on real-life statistics and accounts from actual freelancers) and then decide what’s best for you. So here’s a look at a fairly typical freelance budget (for a single person – this doesn’t take into account family costs like daycare, etc.) to give you an idea of what you might be in for.
If you’re starting a freelance career, or looking to grow your existing business, download our Free eBook, The Essential Guide to Launching a Freelance Career.