When you start freelancing, the financial aspect of it can be daunting.

There is definitely a lot of room for financial mistakes, from small ones to devastating ones.

Luckily, Freelancers Union has put together a list of some of the most common mistakes freelancers make and gives you the tools to fix.

“Mistake #5: Not creating a strategic financial plan

Earning and spending according to what seems logical or interesting for the moment can be tempting, but it’s not sustainable. Your financial plan doesn’t have to consist of anything more than a pie chart showing the best ways to reinvest earnings in the business. Overtime, use the chart to compare your actual spending to the plan on an ongoing basis to make sure you’re maximizing the dollars that you get back in from every dollar that you spend.”

See the other 6 mistakes at Freelancers Union.