My Small Strategy for Weathering Big Money Shifts
On the day I typed this, I did something to help safeguard myself against the ups and downs of freelancing: I opened another business savings account with my bank.
This is something I’ve been wanting to do for a while. Why? In short, I got tired of getting caught off guard. Allow me to explain.
When I begin freelancing, I had an old laptop that my grandparents bought for me as a teenager. In my head, I call it “Old Faithful.” It got me through term papers and deadlines for my early freelance clients, but I knew that its usefulness was coming to an end. I won’t dare say what operating system it used in fear of dating myself.
Over time, my subsequent computers — also gifts — had problems of their own.
My other business devices both new and old had their own faults. My printer rebelled against me as I tried to scan and email a contract to a client. Both my desktop and my laptop have taken trips to the manufacturer for pricey repairs.
Each time a piece of equipment malfunction, it cost me time, money and stress. But it wasn’t always negative expenses that came out of nowhere.
Sometimes, I wanted to invest in myself and my business. Last year, for example, I went to the National Association of Black Journalists conference in Detroit, saving money by staying with family and shaking hands with leaders of well-known media companies. Despite saving money on travel and hotel costs, the conference was far from cheap, especially for an up-and-coming freelancer.
Not wanting to miss out on future events because of money — or lack thereof — I decided to open another business bank account to save for opportunities and emergencies. Much like I automate my salary, quarterly taxes and retirement contributions, my plan is to set aside money every month to prepare for these expenses so that they don’t upend my life as they come.
One of the many realizations I’ve come to both as a freelancer and as a woman of color who doesn’t come from a wealthy family is that I must be more responsible for my money. I do not have the luxury of calling home should there be an emergency that would grind my business to a halt temporarily. So rather than rack up interest on a business credit card, I’m attempting to be my own bank so to speak.
For anyone who wants to try something similar, here’s a NerdWallet guide on where to find free business bank accounts in your state.
As a freelancer, it’s super important to network and it’s important to make sure that you can meet your deadlines. But unfortunately, freelance workers can’t rely on their clients’ budgets for equipment, travel and professional development. If the conferences are inclusive or thoughtful enough, you may spot funding or reduced pricing for freelancers to attend such events. In this regard, we feel the full weight of independence.
So far, I put a small amount of money in the account. Still, I walked out of the bank with greater peace of mind.
How do you save for emergency business expenses? Where do you find funding for conferences? Tell me in the comments or email me at contact@thefreelancebeat.com.
