If there is one guarantee with freelancing, it’s that your income will never be the same from one month to the next.
Even if you are able to secure some sort of recurring income, you’ll still have varying amounts of work, different size jobs, and don’t forget those clients who can’t seem to pay on time.
That’s why it’s important that you try your best to stabilize your income as much as possible.
A fantastic way to start doing that is by putting together a 12-month cash flow projection.
“Step 2: Put together a 12-month cash flow projection
The first time I put together my 12-month cash flow projection, it changed my freelancing life.
Thinking about money coming in month to month was super stressful, but seeing the potential over an entire year and seeing how the ebbs and flows would even out changed my whole perspective.
I say this because when you open the spreadsheet for the first time (download it here), you may be tempted to close it right back up. I know I was.
A 12-month cash flow projection is basically a view into your potential future. Because you often can get paid in chunks at different points in time, planning month-to-month can give you tunnel vision and lead you into feast-or-famine habits.
By viewing your cash flow as a whole year’s worth of income, you can see the big picture. And often, it’s brighter than you think it is, especially if you’ve been living in that dang tunnel the whole time.”
Check out the other 4 steps at Millo.