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*This audio was generated using my own AI Voice clone thanks to ElevenLabs AI Studio.
Freelancing brings a unique freedom and flexibility, but it also requires a proactive approach to finances. While you might have strong profit margins as a freelancer, it’s crucial to set yourself up for long-term success. Here are three key money moves I think you should make right now to build a strong financial foundation and sustain your business growth for the long haul. These are all things I wish I got told years ago and took way too long to do!
1. Invest in Accounting Software (Like QuickBooks)
When I first started freelancing, keeping track of my money was one of the hardest parts. Definitely my least favorite. At first, I thought I could just keep it all in my head or jot things down here and there using Apple Notes. But before long, I had no idea what I was actually making or spending, and tax season was a mess! So, I finally decided to use accounting software like QuickBooks, and it changed everything.
QuickBooks is like a big helper that keeps track of every dollar I make and spend. It’s super simple to see where my money is going, like if I need to pay for software or a new computer. When it’s time to pay taxes, all my info is organized, so I don’t miss any important details or tax savings. And it saves me tons of time because everything’s in one place.
Long-term benefit: Getting organized with money from the beginning helps me plan for the future. I can see when it’s a good time to grow my business, adjust my rates, or even take on bigger projects. Staying on top of my finances means I’m always ready for what’s next!
2. Prioritize Investing – Especially in a Roth IRA
One thing I learned quickly as a freelancer is that I’m responsible for my own future—there’s no company retirement plan waiting for me. A Roth IRA has been one of the best ways to help set my family up for the future. It’s a special account where I can save and invest money now, and when I retire, I can take it out completely tax free.
When I first started I would randomly just throw in small amounts when I might have a little extra cash. Those small contributions helped me develop the habit and process that grew to what I auto deposit every month now. I also put a small amount regularly into another regular investment account.
Long-term benefit: Contributing to a Roth IRA is a smart way to think beyond today. It builds a solid foundation for the future, helping me prepare for the ups and downs that come with freelancing and making sure I’ll have steady savings down the road.
3. Reinvest in Your Business
It’s tempting to enjoy a high profit margin by living off what you earn, but if you’re not reinvesting in your business, you’re limiting its potential. Whether it’s upgrading your tech, taking an online course to improve your skills, or marketing to new clients, putting money back into your business helps you stay competitive and grow your client base.
Consider budgeting a portion of your income each month for reinvestment. You might start small by purchasing software, hiring help for projects, or attending networking events. As an example I recently was able to fly to Boston to attend HubSpot's annual marketing conference called INBOUND. I know for sure the cost to attend will come back big time in the long run. Reinvesting also keeps you focused on growth and scaling your business beyond just day-to-day income.
Long-term advantage: Reinvesting in your business now prevents stagnation and allows you to expand your services or improve your offerings over time. Think of this as setting the stage for even higher earnings and more security in the future. Like other businesses, freelancers benefit from planning for long-term growth, even if that means reinvesting some profits today. This does mean probably living on less but trust me it is worth it in the long run.
Final Thoughts
Freelancing offers a great chance for financial freedom, but it requires intentional money management to build a sustainable future. Investing in accounting software, putting money into a Roth IRA, and reinvesting in your business are three moves that prioritize long-term growth. Remember: a freelancer’s advantage is flexibility, but thinking like a business owner will set you up for lasting success.