Freelance Writing and Financial Mistakes
When you decide to become a freelance writer you need to take it seriously. You are now running your own business. No, you donâ€™t have hundreds of employees but it is a business nonetheless. For this reason, you have to know a thing or two about your finances and how they will be affected by your new venture.
Here are three financial mistakes that all freelance writers need to avoid:
1. Spending too much money. Even if you are doing well for yourself you donâ€™t want to spend too much on your career. One of the biggest benefits of becoming a freelance writer is the low startup cost. Along with this, once you have everything you need there are not too many expenses that come up. Does this mean I should never spend money? Of course not. Just make sure you are 100 percent comfortable with your decision to spend â€“ no matter what it may be on.
2. Not tracking income and deductions. While this may sound crazy, I have had many freelance writers come to me with an issue based around this. From day one you should track every dollar you earn and spend. This is important for many reasons, and there is no way around it.
3. Not paying taxes. This goes along with number two above. If you do not track your income and expenses you will find it next to impossible to pay the proper amount in taxes. And as you know, messing with the IRS is not a good thing. As a freelance writer you have to be serious about your tax situation. This means paying the right amount on time (quarterly) and without making any mistakes. Tip: hire a tax professional early in your career. This is one of the best moves I ever made.
If you are not careful, these three financial mistakes can harm your freelance writing career.