First 30 Days Blog

19 nov

Working from Home and Saving Money

JennaSmithWhen you make the big switch to freelancing or working from home, you gain a lot. You are able to work at your own comfort and speed, without the worry of a supervisor coming to check on you. You are able to wear pajamas if you want, and work from your bed or your couch.

On the other hand, you often have to adjust to living on a reduced income. A freelancing career takes a while to ramp up, and even if you are earning as much as you made at your old job, you’re often paying more in taxes. Since self-employed people are required to pay both the individual and the employer’s portion of Social Security and other taxes, even if you’re making the same amount of money each month, less of that money goes into your pocket. Still more of your income has to go towards funding the business itself — the web hosting, for example, that helps clients find your work.

All of this means that you have to learn how to live on less. Don’t worry — we’re not suggesting you give up your new freelance career and go back to your old job! Instead, here are the steps you need to take in the next 30 days to get your finances on track.

Start eating at home

If your old job meant grabbing a Chipotle burrito or Corner Bakery sandwich every day for lunch, it’s time to swap out that habit for a more economical one. Eating out every day costs far more than eating at home, even for “meal deals” like McDonald’s Dollar Menu. As Trent Hamm of The Simple Dollar proves, it is cheaper to buy ground beef and make your own hamburgers than it is to buy the same amount of hamburgers even at $1 each!

That means you have to start planning and shopping. Buying pre-packaged sandwiches from the grocery store isn’t saving money. Slicing your own cheese for sandwiches is. Look for meals you can make while you work, such as slow cooker stews or hearty casseroles. The more money you save on food, the more money you’ll have to support your new business.

Cut back on your overhead

If it’s a monthly payment and you don’t need it, it’s time to let it go. That means no more magazine subscriptions, and no more gym memberships. (Yes, staying healthy is important, so find activities you can do for free, such as running, or joining a Meetup.com sports league.)

There’s one place where you probably shouldn’t cut back: your entertainment/internet/cable package. You definitely need internet for work, and you don’t want to skimp on your download and upload speed. Instead of cutting back on cable and internet, look for deals on a combination package. As the bloggers at MoneyNing note, a good Verizon FiOS double play promotion code can get you significant cost savings as well as a bonus $300 Visa gift card. That’s money in the bank!

Figure out how much money you need to earn every day

When you’re a freelancer, it’s easy to get into a procrastination habit. With no fears of a boss coming after you, sometimes that little break stretches into a lost afternoon. Solve this problem by figuring out how much money you need to earn to make your monthly financial goals. Then, every day, make sure you do at least as much work as would earn a day’s amount of money. If you have a project that is supposed to earn you a week’s worth of income, for example, make sure you complete at least 20% of that project every day, Monday through Friday.

If you implement these three steps over the next 30 days, you’ll be well on your way to a successful “work at home” career. Then you can devote your time to growing your new business.

If you felt moved, inspired, touched, helped, annoyed, or anything after reading this, please let us know. Our wonderful bloggers really do appreciate your comments and feedback. It’s super easy and takes a minute. Click on comments below.

Posted by Jenna Smith on November 19th, 2013 in Career, Finances, House and Home, Personal Stories | 0 comments

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