Financial self-care sounds fancy. It’s really just checking in with your money before it has to SCREAM for attention.
When you freelance or work at a startup, money gets messy fast: income that swings month to month, taxes nobody withholds for you, and a shopping cart that somehow fills itself after a long week. (Not me. Okay, me.)
Run through this checklist once a season and you’ll feel back in control.
Quick note: I’m your big sis, not your financial advisor or accountant. Use this as a starting point, and get professional advice for your situation.
Know your numbers
You can’t fix what you won’t look at. Grab a coffee, sis, and find:
- Your monthly baseline: the minimum it costs you to live (rent, food, bills, debt payments)
- Your average monthly income over the last three to six months, since freelance income is lumpy
- Every debt you have, with its balance and interest rate
- Your goals for the next 12 months, with a dollar amount next to each
Build your cushion
An emergency fund is your financial first-aid kit for car repairs, medical bills or a slow client month.
A common guideline is three to six months of expenses. If your income is irregular, aim for the higher end. Keep it in a separate high-yield savings account: easy to reach, but not so easy that it funds a random Tuesday haul.
- Emergency fund has its own account
- A set amount moves there automatically every time you get paid
Handle taxes like a business owner
Nobody is withholding taxes from your freelance income, so that job is yours now. In the US, self-employed people generally need to pay estimated taxes quarterly.
- Open a separate savings account just for taxes
- Move a percentage of every payment there as soon as it lands (many freelancers start with 25 to 30 percent, but ask a tax pro for your number)
- Put the quarterly estimated tax deadlines in your calendar
- Save receipts and track business expenses as you go, not in a panic in April
Separate business and personal money
Mixing them makes taxes harder and hides how your business is actually doing.
- Use a separate checking account for business income and expenses
- Pay yourself a regular amount from the business account, like a salary
Check your credit
You can get free credit reports from all three bureaus every week at AnnualCreditReport.com.
- Pull your reports and look for accounts or errors you don’t recognize
- Dispute anything that’s wrong
- Consider a credit freeze if you’re not applying for credit soon (it’s free)
Take care of future you
When you work for yourself, nobody signs you up for a retirement plan. That’s on you too.
- Look into retirement accounts built for self-employed people, like a SEP IRA or a Solo 401(k), or an individual IRA
- Automate a contribution, even a small one, so it happens without willpower
Tame the shopping habit
I’m not preaching from a mountaintop here. Taming my own shopping habits was literally on the agenda during my last DC trip with the girls. A few things that actually help:
- Unsubscribe from store emails and turn off shopping app notifications
- Delete saved cards from shopping sites so every purchase takes a little effort
- Use a 48-hour rule for anything that isn’t a need
- Review your subscriptions and cancel the ones you forgot you had
Protect yourself
- Health insurance that fits your situation
- Look into disability insurance (if you can’t work, you can’t earn)
- A simple written agreement with every client before work starts
Schedule a money date
Put 30 minutes on your calendar once a month. Check your accounts, move money where it needs to go and celebrate the wins. Yes, snacks are allowed.
You don’t have to do all of this today. Pick the one section that made you wince a little and start there. Future you is already grateful.