The only thing we have to fear is fear itself. ~Franklin D. Roosevelt
Earlier this week, I asked readers to share their freelance fears. As I suspected, most readers fell into one of two camps. Either they feared not being able to pay their bills or not being good enough (which could eventually lead to not being able to pay the bills).
I've already written about handling a crisis of confidence recently, so this time I'll focus on fear of not being able to pay the bills.
Despite what FDR tells us above, this fear is actually very real. It would suck to lose your house or get the heat shut off in the dead of winter. And let's be honest, we've seen it happen to people we know in the last year or so.
What's a creative freelancer to do? Here's my $.02.
1. Live below your means. My parents did this, and while I used to roll my eyes at yard sales and coupons, they taught me well. They were not freelancers, but they understood that bad things can happen to good people (and they did). My freelance income is amorphous, so it's especially important to live frugally.
2. Diversify. I don't just pen magazine articles. I teach writing and blogging. I write product descriptions and brochures and website copy for small businesses. And if I needed to diversify further, I'd embrace it as a new creative challenge. Of course, diversification also means seeking out a range of clients rather than relying on one or two.
3. Have a healthy savings account. Hopefully you were able to save some cash before leaving your day job like I did. But if the circumstances made this impossible (for instance, you were laid off or had major expenses wipe out your bank balance), you can still get back on track if you commit to saving some money each and every month. Even when you have a steady flow of projects, it doesn't guarantee a steady flow of money, because invoices get lost, checks get delayed, clients go bankrupt, and so on. That's why it's so important!
Freelancers, how do you handle the fear of financial ups and downs? I'd love to hear your tips and tricks!
And while we're on the topic of Halloween, check out this humorous post by Michelle Rafter on 10 things that scare freelancers.
Flickr photo courtesy of Banana Donuts ~ Half Baked Photography