It can be tricky to reach a point as a freelancer where you are actually bringing in more money than you need to survive. But once you get there, a whole world of opportunity opens up for you. And where you put your money can make a huge difference to your lifestyle now and long into the future. Let’s take a look at some of the investments savvy freelancers make - and why you should consider them, too.
Invest in Hired Help
Here’s the biggest problem with freelancing - you have to do everything yourself. There’s marketing, accounting, website maintenance, invoicing, cold calling, prospect meetings and a lot more besides - and that’s even before you actually get down to work and earn some money.
Many freelancers suffer from this issue, and it can significantly impact their earnings. Let’s say you are a writer that can pull in $300 a day when you are working. But you have to spend 2.5 days a week on admin tasks - which is effectively losing you the ability to earn an extra $750 a week. If you can find someone to do that work for you for a fraction of the price - and a lot more efficiently - you will find your earning potential could skyrocket.
Invest in Business Growth
As you get older, the freelance lifestyle might lose its appeal - you might want to take more of a strategic position, for example. If so, you should be looking at investing your profits into growing your business.
Create a viable, long-term business plan and make sure that you are focused on making things happen - whether that’s hiring a first employee, renting an office or seeking ways of expanding your business online. Bear in mind, however, is that investing in growth is just as risky a strategy as any other kind of investment - there are no guarantees. So, ensure you don’t burn any bridges along the way, and you can always fall back on your freelancing if things turn sour.
Invest in your future
It's worth planning ahead for the future, too, in a personal sense. Building up a healthy investment portfolio and savings plan for your later years is essential when you are a freelancer.
So, learn what to look out for with penny stocks, bonds, savings accounts and ensure you have a good retirement plan. The essence of sound investment is only 'gamble' with what you can afford, and mix up your portfolio to reduce your exposure to risk in any one particular area.
Invest in Your Education
Finally, if you want to take your freelance career to its maximum potential, always consider investing in your education. It's the only way you can keep improving, and when you are in the world of freelancers the only guarantee is that there will be people younger, fresher, and hungrier than you. Continuing your education is the only way to survive, whether that means taking a writing course or finding a reputable business coach to work with. If you want to make more money, taking my master course would be a good investment.
OK, so there you have it - I hope these tips have given you some good ideas. Let me know your thoughts - and good luck!