Freelance work with tech in Ghana when done right can be hugely rewarding. People focus solely on their expertise and technical skills forgetting the business aspect. Your work as a freelancer could fail if every aspect is not balanced out properly. Any freelancer will tell you that the job may also come with its share of concerns. Not only are you in charge of bringing in all of the work and managing your own time and resources to do it all, but you also need to be concerned about financial non negotiables like taxes, out-of-pocket expenses, and that all-too-common annoyance of late-paying clients.
There may be peaks in the work as well. Maybe, while those unpaid invoices are being processed, you could run out of money even if you have been consistently busy for weeks. When does it end?
These are a few tips and tricks to help make this side of the job easy
First, always know what is tax deductible
Surprisingly, practically everything you need to accomplish your job as a freelancer can be deducted from your taxes. Advertising, travel, mileage, equipment, hardware, software, insurance, and many more expenses can fall under this category. You can divide something appropriately and subtract the portion that is for company purposes even if it is partially for personal use. For instance, monthly expenses like rent, utilities, and mortgage interest are partially deductible if you work from home. Be careful not to use an item’s “tax deductible” status as a justification for purchasing it when it is not absolutely necessary if cash flow is low. Make an objective evaluation before making the purchase to determine whether you need it for your business now or whether you can wait when your finances are in better shape.
Also, watch your flexible spending
If the steadiness of a regular monthly paycheck meant you didn’t worry too much about non-essentials and indulgences, tracking your flexible spending is a beneficial exercise in more ways than one. You might be shocked at how much you spent on some items. With a little self-control, you might also be amazed at how simple it is to reduce them if you absolutely need to. Working from home makes it simpler to cut back on expenses like expensive morning coffees, lunches out, drinks after work, and lunches out when at the office itself employed.
Lastly, always have a long term goal for the freelance job
In a month when you’re struggling to make ends meet, this suggestion may seem academic, but having a long-term strategy for your extra money throughout the year will help you prepare for things like debt consolidation, your children’s college fund, boosting your pension, or a pleasant family vacation.
Aim to live on 50% of your salary as a general rule of thumb. If all unnecessary expenses are removed, that is the fixed, absolute minimal cost of life. If an additional 30% goes toward flexible costs, 20% is left over for long-term savings.
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