Personal Finance Strategies for the Arizonian Freelancer

 In Business, Uncategorized

One of the chief joys of freelancing is its inherent flexibility. From where, to when, to who you work for, freelancers are able to exert a lot of agency over themselves and their environment. However, with all of that freedom comes a different set of challenges. But with smart planning and professional aid, many of the difficulties of the present can be lessened and your future secured.

Financial planning and adequate insurance are of the utmost importance. Professional help is not difficult to find, especially in Arizona’s larger cities. A Phoenix insurance agent can help you get the coverage you need, and a thoughtful business plan can ensure that you keep the lifestyle you’ve worked so hard to attain.

How to Approach Personal Finance

The phrase ‘personal finance’ might make your eyes glaze over, but it needn’t be overly complicated. 99designs suggests 5 tips that any freelancer can use as a starting-point for their planning process or as guidelines for their future endeavors:

  1. Don’t avoid or procrastinate when it comes to your finances

No matter how unsavory you may find the idea of financial planning, the minor annoyance of dealing with it now will save you years of future headaches. 

  1. Plan for the good times and the bad

As a freelancer, work fluctuations are natural, but they need to be taken into account when you’re planning for the future. The same logic holds true for your insurance needs. As an Arizonian, you have many companies nearby who can help you. If you live in mid or southern Arizona, a Phoenix insurance agent can help you determine what kinds of insurance you will need. 

  1. Factor in your taxes

You will, inevitably, still be required to pay your taxes as a freelancing professional. Rather than draining your bank account during tax season, consider saving up for your taxes throughout the year. 

  1. Keep detailed records of all of your expenses 

Save your receipts and track your expenditures. Not only does this make it possible to write off your business expenses on your taxes, it will also help you become more aware of your spending habits. 

  1. Remember your personal needs and goals 

Oftentimes freelancers immediately invest their earnings right back into their business, but it is important to set funds aside for your individual needs and aspirations as well. 

These general rules will make sure that you are organized, prepared, and that you will continue to see profits. They are also an integral part of any detailed plan for your and your family’s future.

Ensure Your Protection

As a freelance professional, you may not realize the amount of protection that you need. An article on Fox Business outlines 6 types of insurance self-employed individuals will most likely require:

  1. Health Insurance
  2. Disability Insurance
  3. Liability Insurance
  4. Home-Based Business Insurance
  5. Internet Business Insurance
  6. Business Owner’s Policies

Insurance companies offer many of these types of insurance, and will be able to explain their benefits so that you understand what they provide. Each of these takes care of a certain aspect of your life, and should be seriously considered by any freelance professional.

Personal finance strategies can be particularly difficult for freelancers, who often go through periods of time with a great deal of work (and subsequent income) coming in, followed by times where work is scarce and money is tight. A solid business plan will see you through whatever challenges and joys lie ahead, and a Phoenix insurance agent will be able to help you determine which insurance plans are right for you.

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