
OR: Is that Cashmere-Plum Scented Candle a Legitimate Tax Deduction
Ah, the freelance life — you’re living the dream, right? No boss breathing down your neck, no soul-crushing commute, and yes, you can absolutely take a “conference call” from your couch while wearing sweatpants (or no pants at all — we’re not judging). But let’s be real: while freelancing offers freedom, it also comes with the financial stability of a Jenga tower on a windy day. One month, you’re rolling in invoices and treating yourself to avotoast and oat milk lattes like a Silicon Valley CEO. The next, you’re eyeing the “fancy” ramen at the grocery store and wondering if you can justify it as a “business expense.”
Managing money as a freelancer isn’t just about making more — it’s about keeping more. The good news? You don’t have to become a financial wizard or give up all your small luxuries to stay afloat. With a few smart habits and a little help from some tools, you can master your finances, stop burning cash, and build a safety net that doesn’t involve asking your parents for a “loan” you never intend to repay.
So grab that (hopefully tax-deductible) coffee, settle into your workspace (whether it’s a dedicated office space or your kitchen table), and let’s dive into 15 ways to make your money work for you — without sacrificing your sanity, your independence, or your Netflix subscription… okay, maybe that streamer should be on the chopping block.
1. Budget Like a Rockstar… Or, Exactly the Opposite of a Rockstar
Forget about grabbing a high-priced hotel room on a random Wednesday, then trashing it like a rockstar. Not only is it ridiculous behavior, it’s not in the budget. Think of a budget as your financial GPS. Without it, you’re on a financial world tour with no real plan, hoping to stumble upon prosperity. Create a budget and consider using the 50/30/20 rule: 50% for needs (like rent and that life-sustaining coffee), 30% for wants (occasional splurges on gourmet ramen), and 20% for savings or debt repayment. This framework keeps your spending in check and ensures you’re not surviving on instant noodles by month’s end.
2. Don’t Mix Business with Pleasure … Accounts
Mixing business and personal finances is like eating spaghetti in a white shirt — messy and regrettable. Open a separate bank account for your freelance earnings to make tracking expenses easier and keep the taxman happy. Plus, it feels incredibly fancy to say, “I’ll cover the coffees – just charge that to my business account.”
3. It’s Not Nuts to Save Like a Squirrel
Freelancing income can be as unpredictable as a cat on catnip. Beyond the ever-practical advice of diversifying your income sources and not relying too heavily on one single client, we recommend saving like a woodland animal preparing for winter. Aim to stash away at least three to six months’ worth of living expenses for those inevitable dry spells. Remember, even squirrels have bad acorn seasons.
4. The Tax Man Cometh: The Horror Movie Sequel
Taxes: the unavoidable plot twist in every freelancer’s story. Set aside about 30% of each payment for taxes to avoid a nasty surprise come tax season. Consider working with an accountant who speaks fluent freelancer to help you navigate deductions and keep Uncle Sam at bay. Make a plan, make peace with it, and don’t scream bloody murder when you mail out your quarterly payments.
5. Flex Your Talents with Help
Marketing yourself can either feel like you’re being narcissistic or like you’re shouting into the void. A Talent Network can help reduce the time you spend on sales, marketing, and invoicing tasks. FlexTal matches your unique skills with clients who need them. FlexTal not only helps you find gigs but also streamlines payments, so you can focus on your craft instead of chasing invoices. It’s like having a personal assistant who works for free (and doesn’t steal your lunch).
6. See Ya Later Alligator — if by “Alligator” You Mean “Office Space”
Sure, private offices and co-working spaces can lure you in with chocolate fountains, unlimited coffee, or artisanal water coolers, but you can’t fill your wallet with chocolate-covered-strawberries. I mean, you can, but not only would that be messy, it’s hard to pay your rent with fruit. Opt for budget-friendly alternatives like libraries, cafes, or your home office — if you get desperate for elevated comfort, spend a day on your cozy couch, your cat will appreciate the company.
7. Is Autopay Slowly Killing Your Budget?
Do you really need to subscribe to seven different premium-pay design tools, four stock photo sites, and those four obscure magazines each about underwater basket weaving? Probably not. Worse yet, due to the convenience of autopay, we forget we’re even paying for them. Take the time to regularly review your tools and subscriptions and cancel any services that are redundant or that you haven’t used in a while. Can you use free alternatives (think: Canva for design, Google Docs for word processing, and Google Chat instead of Slack) in place of the high-priced ones? Your bank account will thank you, and you may start reclaiming some of that lost free time when you no longer have to read all those basket weaving back-issues.
8. Extreme Couponing: Reality TV or Just Reality
Channel your inner bargain hunter. Use apps and websites to find deals on everything from office supplies to software. Extreme couponing isn’t just fodder for Reality Television or a time-suck for suburban moms; it’s a freelancer’s secret weapon. Just ask Taryn Blankenship, who saved $12,000 over four years by mastering the coupon game. Additionally, think beyond standard couponing — take full advantage of offers from services you already pay for, such as credit card cash-back rewards, phone service provider’s free streaming services or discounted partner offers, and member rewards from warehouse club stores or utility providers.
9. Ignorance Really Isn’t Bliss
While upskilling yourself is hugely important, it doesn’t have to break the bank. Before dropping big bucks on private lessons or high-end certifications, decide what skills could help you excel faster in your industry, and which of those skills can be learned or enhanced with the help of free resources like Coursera, Khan Academy, or YouTube tutorials. Knowledge is power, but chasing it can be affordable. Plus, you can learn in your pajamas — no judgment.
10. Network Within Your Neighborhood — and Your Means
Fancy conferences in exotic locales are great, but local meetups, online forums, and virtual events can be just as valuable (and way cheaper). Search for local groups, clubs, coworking communities that offer networking events and opportunities to connect that won’t require you to sell a kidney. Consider regional events that occur nationwide — such as CreativeMornings; or business connection events hosted by your local Chamber of Commerce.
11. Barter Like It’s the Grand Bazaar
Even if you’re not a spice vendor or rug merchant, you can learn to barter like you’ve had years of experience at the famous Grand Bazaar of Istanbul. Offer your services in exchange for others. Need a new logo? Build a website for a graphic designer. Need business cards printed, negotiate a box of cards in exchange for an SEO-rich blog post. It’s the old-school way to get what you need without spending a dime..
12. Set It and Forget It Investing
Saving and investing can be incredibly important — and are often incredibly easy to overlook. Set up recurring automatic transfers to your savings or retirement accounts. It’s like having a financially responsible robot ensuring you’re prepared for the future. And robots don’t forget.
13. Speaking of Investing & Taxes…
Financial literacy isn’t a one-and-done deal. Regularly read up on budgeting, taxes, and investment strategies to help you stop burning cash with banking fees and Uncle Sam. Hire financial and tax professionals to assist you when and where they make sense to help ensure you’re following the laws and regulations. The more you know, the less likely you are to end up owing a huge bill at yearend or paying so many fines you end up considering instant noodles by candlelight to be a splurge.
14. Embrace the Minimalist Lifestyle
Do you really need the latest gadget, or can you survive with your current, slightly dented but functional equipment? Prioritize needs over wants, and remember: minimalism is trendy. If you do need an upgrade, can you grab last year’s model and still be much more advanced than your current tech? Plus, save your receipts, ask your tax preparer if your business-related purchases might qualify as expenses you can write off.
15. Celebrate Small Wins
Paid off a debt? Landed a new client? Managed to cook a meal that isn’t ramen? Celebrate! Recognizing your achievements keeps you motivated and reminds you that you’re rocking this freelance thing. However, celebrations don’t mean “reward yourself with an expensive gift.” Self-care and celebrations can come in small, affordable packages — celebrate by upgrading your next coffee to Venti (just once) as a treat to yourself, add an extra at-home bubble bath to your self-care regimen (bubble bath, not luxury spa day); your celebration shouldn’t cost more than your win saved.
Managing your finances as a freelancer doesn’t have to feel like a never-ending game of Whack-a-Mole, where every time you save a little cash, another unexpected expense pops up. With the right habits, a bit of planning, and a healthy dose of common sense (plus a little help from FlexTal to keep those invoices rolling in), you can actually thrive — not just survive — in the freelance world.
Let’s recap: You’re going to budget like a responsible adult (even if it feels unnatural at first). You’ll separate your business and personal finances so tax season doesn’t send you into a spiral of existential dread. You’ll hunt down unnecessary expenses like a detective in a noir film, slashing subscriptions, overpriced software, and that coworking membership you never use. And most importantly, you’ll build a financial cushion so you’re not living invoice to invoice, praying a client pays before your rent is due.
If you’re still feeling overwhelmed, don’t worry — you’re not alone. I once spent an entire afternoon convincing myself that buying a $12 artisanal soy candle was a “business expense” because it “enhanced my work environment.” Spoiler alert: The IRS does not care about my Cashmere Plumb-scented productivity. But hey, we live and learn … and it smells amazing!
At the end of the day, freelancing is all about balance. Spend wisely, save aggressively, and use tools that make your life easier — including letting FlexTal help you find Work Assignments and get paid without the usual headaches. After all, your goal isn’t just to scrape by; it’s to build a sustainable, thriving business that funds the life you actually want.
Now, go forth and conquer — preferably without burning cash; with a budget, a savings plan, and a deep awareness that oat milk lattes and cashmere-plum scented candles are not necessities (no matter how much your senses of taste and smell want to argue otherwise). 🚀
💡 Let’s hear from you: What’s one thing you’ve stopped spending on as a freelancer, and what free/low-cost hack did you find instead? Drop your wisdom in the comments below! #FreelancerTips #MoneyManagement #RemoteWork