5 Things Your Cat Can Teach You About Managing Your Freelance Income

I used to manage my money so badly, I overdrew my account… a lot. (Don’t even get me started on the outrageous overdraft fees at my old bank.) I sucked at saving because I always found an excuse to tap into the money I’d just put into my savings account. And then I became a full-time freelance web designer, and was lucky if I got paid once a month. I often found myself trying to make $400 last five or more weeks… and got really good at it. Whether you are full time, part time, freelance, or a mix, you can manage your money just as well. All you have to do is think like a cat.

Organize your budget. Cats are really good at keeping neat. They keep every hair in place and smooth it over again and again until it’s just right. Use a spreadsheet to keep income and expenses organized. Every time you get paid, before you touch even one penny of that income, sit down and flesh out how much you have, what bills need to be paid, which expenses you will need money for, how much you want to save, and any other items that don’t fit in those categories. I typically organize mine in a spreadsheet like this:

Current Balance (Checking, Savings) Upcoming Bills Bills to Pay This Week Savings Expenses Other

Britt Reints wrote an awesome tutorial on how to create a budget. Everyone is different, so you may have to tweak your particular spreadsheet a few times before it works for you.

Stick to the basics. Cats are relatively simple creatures. They’re very happy as long as they have fresh food and water, clean litter, a couple of toys, and a sunny spot to nap in. Occasionally they want you to pet them, but for the most part they are self-sufficient. When making a list of your expenses for the week, ask yourself, “Do I really need this?” about each item you add. I frequently have to go back through my Expenses section to cut a few things out that can either wait until the next week or just aren’t necessary at all.

In each of my spreadsheet sections, I total up all items automatically, then have it also automatically subtract that section’s total from my checking account. I can quickly and easily see what I have left, and where I need to cut back a little.

Hoard your savings. No one is more selfish than a cat, but you have to try when it comes to your savings. Every week, put away a set amount no matter what. Do not touch the money in your savings account even if something else comes up. Obviously some things are emergencies and you have to raid your savings account sometimes, but for the little things, ask yourself again: “Do I really need this, or can it wait?”

If you don’t have a savings account, set one up immediately. Every week, save at least $5. Transfer it straight from your checking account because you will be much less likely to use it on something else if it isn’t in your hand. I have a Savings section right after my Bills in my spreadsheet because otherwise I would not look at saving as a priority. I save at least $10 a week, but usually save around $30 if I can. I also take advantage of this great feature of my checking account that allows me to transfer $1 to my savings account every time I use my debit card for something. That alone helps me save more than I normally would!

Treat yourself. My cat is a little addicted to tuna, and never says no. While she could probably use a lesson in moderation-or at least in not trying to knock me over every time I make tuna salad for myself -her love for tuna is a lesson in making sure you’re not over-restricting yourself. If there’s a little extra money after you’ve balanced your budget, treat yourself to something, whether it’s a new shirt or an ice cream cone.

Make budgeting a habit. Cats are over-the-top OCD about their routines. Make budgeting a part of your routine-and don’t just do it once. Whether you do it every single time you get paid, once a week, or once a month, make sure it becomes your habit. You will be amazed at how much less stressed you are and how much easier it is to stretch your income, no matter how small.

Once you start budgeting, you will spend less time worrying about money and more time doing what you love: being creative.


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