Hi Reader, Happy Friday! January was a weird month, wasn't it? I lost one contract in early Jan and a lot of my other clients have been slow to hand over briefs. It all started to pick back up at the end of the month, which it tends to do, but that doesn't stop me from panicking that the gravy train is over π Anyone else?! February is a SHORT old month, so I'll be cramming a lot of work into the next four weeks, PLUS the launch of Workflow Wizard V2.0 (more on that in a bit). Quick tip: if you buy Workflow Wizard v1.0 NOW for Β£69, you'll be able to upgrade when 2.0 launches for LESS than it would cost to buy v2.0 brand new. βEnrol here now and I'll send you an email when it's time to upgrade. P.S. This week on Instagram, I shared how I manage my time as a busy freelancer. Read all about it here. And don't forget to give me a follow for regular tips and tricks! Here's what I've been up to this week work-wise: π I wrote 3 pieces for clients (including a WFM tool and a CRM integration) π I refreshed 2 pieces for Shopify π I edited a draft for a client π I held 2 SME interviews for client pieces β± Approx hours spent on client work this week: ~17 β± Approx hours spent on non-client work: ~3 π° Total revenue this week: Β£4,250 β Friday Freelance Tipββ β¨ β Let me share something that stopped me in my tracks recently: I calculated how much time I used to spend on "business management" tasksβyou know, switching between tools, searching for files, recreating proposals, following up on payments, and trying to remember where I left off on projects. It came to about 4 hours per week. That's 16 hours per month. 192 hours per year. 8 entire days. If you bill Β£75/hour, that's Β£14,400 worth of time annually spent just trying to stay organised. WHAT THE HECK?! I call this the "disorganisation tax", and most freelancers are paying it without even realising it. But this isn't JUST about money. It's also about mental bandwidth. Every minute spent searching for a contract or wondering if you followed up with a potential client is mental energy you're not spending on:
The most painful part is this βtaxβ is completely optional. You don't have to pay it. The right systems can completely get rid of this overhead, giving you back time and mental clarity. These days, you can see that "non-client work" tends to take up about 2 hours of my time each week. And that often includes creating social media posts and writing this newsletter. It doesn't seem like much, right? And that's because I have two things in place:
I have templates for EVERYTHING, from proposals, invoices, and contracts to welcome packs, newsletters, and Instagram posts. To be honest, it'd take a heck of lot more out of my week if I couldn't just drag and drop new info into a pre-made document. If you don't have templates already, what are you doing?! It's easy to forget that, as freelancers, we're the whole show. We're accountants, marketers, sales people, customer support, and everything in between. The mental load of switching between these roles can be exhausting, even if your actual workload is manageable. If you're not already on the waitlist and want to get more organised, I highly recommend you join it (we're only launching to the waitlist at first and you'll get a nice discount π) . OR: if you buy Workflow Wizard v1.0 NOW for Β£69, you'll be able to upgrade when 2.0 launches for LESS than it would cost to buy v2.0 brand new. βEnrol here now and I'll send you an email when it's time to upgrade. This week, we have a B2B writer from Europe sharing their numbers. Where are you based? Southeastern Europe How long have you been freelancing? 4 years on and off, switched to full-time freelancing in January 2023. What do you do? B2B writer. What was your revenue this year? $61,000 This writer freelances full-time as a sole trader and this was their highest earning year. How much did you take as a salary? Everything after paying taxes and expenses. How much did you pay in taxes? I used to pay a fixed monthly rate of around $350 (this covers mandatory state pension, mandatory state healthcare, and personal income tax). However, in November I exceeded the limit of this tax bracket and will be switching to a different one in January, where I'll pay an additional 10% income tax on all profit. Plus, I'll need to keep the books so I have to pay for an accountant, too. On top of that, I pay a one-off green eco-tax which is around $45-$50/year. What are your business expenses? Tools, subscriptions, invoicing software, hosting, etc.: around $60-$70 Accountant (started paying in November): $130 I also bought two courses, which were around $230 together Do you contribute to a pension? At the moment, I only contribute to the mandatory state fund. It's a part of my taxes. All of my remaining cash is in a high-interest savings account. Do you have any hot money-management tips? At the beginning of my freelancing journey, I prioritized saving for an emergency fund which could cover at least six months of my expenses. So I don't have to sweat about losing clients, delayed payments, changed payment schedules, or a weak cash flow. And this was THE BEST decision I made. It saved me from many financial troubles.
As always, happy freelancing :) Lizzie β¨ Interested in sponsoring Friday Freelance Tips? Get your brand, product, or service in front of 6,000+ freelancers, entrepreneurs, and founders. See sponsorship options here. Follow me on Instagram and on Linkedin, where you can see the behind-the-scenes of my business. |
Want a sneak peek into what it's really like being a freelancer? Spoiler: It's not all sunshine and rainbows. Every Friday, I share a tip I've learned from painful personal experience, plus everything I've been working on that week. Join me (and 4,000+ fellow freelancers!) on a behind-the-scenes adventure! π
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