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How to Maximize your Return on Freelance Work

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How to Maximize your Return on Freelance Work

Freelance work may be one of the more difficult ways to make a living out there. Between tax headaches, feast-and-famine cycles, and sometimes having to undertake tasks that either don’t pay well enough or are just plain uninteresting, freelancing can often seem like an unnecessarily tough way to make a living. However, there are some measures you can take to be successful and still work on the schedule that suits your lifestyle and income needs.

1. Know the value of your work.

This crucial first step is where many freelancers make a mistake that can haunt them for months or even years. Sit down and make an honest evaluation of your skills and what you bring that makes you different, better, or more capable than others. Once you have done this, look into what others are charging for comparable services. If you can do better than they can for less, this will give you a good starting point to set your rates. Your clients will want to negotiate, and if the level of work makes it worthwhile, then by all means, do so. Otherwise, don’t be afraid to stick to your guns. Remember, you’re trying to create a mutually beneficial situation. That won’t happen if the client has final control of your payout.

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2. Treat your job like a job.

Freelancing seems like a fun way to make money in the short term. The problem is, especially if you are working on the Internet, you will have to structure your time so you can best serve your clients. When your clients are largely in the same country as you, this is one thing. However, especially when you are working from a different continent, you may need to be willing to make some concessions in your schedule. This will make it more likely you will get more work, because your clients will appreciate the extra effort you put in to accommodate them.

3. Manage your time wisely.

Procrastination is the enemy when it comes to working as a freelancer. Many clients schedule tasks for the quickest possible turnaround. Do not be afraid to tell a client you need more time to complete a project if the restrictions are unreasonable or you’ve run into a snag, but it is vitally important that you don’t abuse this. Most clients are willing to be understanding if they ask for something that is simply impossible, but if you blow off work for the beach, word will get around.

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4. Be clear on the requirements.

If there are any vagaries in the client’s requirements, don’t be afraid to seek clarification. For example, a client who agrees to pay $30 per 1,500-word article and orders a 15,000-word article but keeps the price the same was either not paying attention or hoping to get the maximum work for minimum payout. If possible, have a contract in place with the client specifying your rates for different lengths or types of work. Remember to allow a little wiggle room for extra research, time, or effort on your part.

5. Don’t forget about taxes.

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13 Freelancers, Good and Bad, Which Are You?

    Tax laws and requirements vary from jurisdiction to jurisdiction, but one thing that’s universal: You will have to pay them. Be sure to set aside an appropriate percentage of your income monthly, quarterly, or annually. It is generally better to pay monthly and overpay, at least under the US tax code, to avoid having to pay a larger lump sum at the end of the fiscal year. Independent contractors usually start at 30% for taxes, so being able to set aside 40-50% per pay period is ideal to avoid penalties and ensure a return at the end of the year.

    6. Sell yourself.

    Think of taking on new clients as a job interview and emphasize the talents you have that make you a better fit for a client’s needs. You are trying to market yourself to the client as the solution to their problems. At the same time, you need to make sure the people you are working for are going to be a good fit for you as well. This will help avoid friction and create a more harmonious working relationship. Be confident and clear about what you can deliver, as well as what client support you will need to be as productive as possible. By setting clear expectations, you can avoid a lot of problems before they ever have the chance to become problems.

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    7. Network, network, network.

    Being a freelancer can be hard work. Bearing this in mind, networking is critical to your success. Seek out new opportunities and ask current clients for references. Sites such as LinkedIn and Google+ are good for making connections. Also, don’t be afraid to ask for referrals or to renew a contract when the work is done. This may sound gauche, but there’s nothing wrong with “overhearing” someone at a restaurant, bar, or on the street mentioning they need exactly what you do…and stepping in to offer your services! The worst they can say is no, and you’ve just gained a new opportunity to prove yourself.

    8. Be a pack rat.

    Always hold on to copies of anything you do for a client, invoices you generate, payment records, contracts, receipts, and communications. Not only are these helpful for generating a profile of your capabilities, but it also makes tax and other record-keeping simple and efficient. Having a good organizational system that allows for at-a-glance order tracking and monitoring is imperative to keeping appropriate records. It’s also great for task management! Hold onto these for no less than three years after the contract is terminated, just so you can reference them if necessary. And ALWAYS keep a hard copy, because one virus and your great organization is trashed. At a minimum, you should keep copies of your records on your hard drive, in a filing cabinet, on a detachable stick or other drive, and it’s never a bad idea to email yourself copies of everything at least monthly. This ensures you have the information in a number of areas at the same time, so a catastrophic loss here won’t affect your data there.

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    By following these 8 simple steps, you can maximize your freelance work return in no time!

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    J.S. Wayne

    J.S. Wayne is a passionate writer who shares lifestyle inspirations and tips on Lifehack.

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    Last Updated on July 20, 2021

    Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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    Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

    Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

    Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

    Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

    In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

    Break Free of Your Finances

    Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

    When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

    Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

    Though it seems hard to believe, it is really very simple to get financial freedom.

    To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

    While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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    Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

    1. Stop Unnecessary Spending

    We often spend money inwardly, instead of objectively.

    For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

    To stop this habitual spending, log down all your spending over the course of a month.

    Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

    This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

    2. Plan a Monthly Budget

    This is a great opportunity to get serious.

    Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

    Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

    3. Cut-up Credit Cards

    Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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    If not, you may want to consider ridding your life of the burden that credit cards bring.

    Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

    Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

    4. Increase Savings

    There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

    It’s good practice to save up to 15% of your income.

    Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

    Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

    5. Invest Wisely

    Consider investing in funds.

    Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

    To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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    Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

    6. Invest in Gold

    There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

    You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

    Another way to invest in gold is through ETFs (Exchange Traded Funds).

    These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

    With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

    7. Stash Emergency Funds

    Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

    If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

    Make it hard to get your cash.

    Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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    8. Find Fabulous Mentors

    Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

    If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

    There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

    9. Be Extra Patient

    Patience is the key of financial success.

    Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

    So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

    Financial Freedom for All

    Anyone can achieve financial freedom, regardless of their financial circumstance.

    Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

    Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

    Featured photo credit: rawpixel via unsplash.com

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    Reference

    [1] Hartford Gold Group: IRA Retirement Accounts

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