Spending Freelance Writing Pay
Whew! A big check came in yesterday one I had been expecting and the first of a series of six that are payment for a big ghostwriting contract. And confirmation that Im getting over under earning. So I have this wish list:
- A leaf blower that vacuums you wouldnt believe the leaves the tree I love so much spreads over my wee yard threatening to smother the lawn. $70.00
- A laptop to take to a conference in August this definitely falls into the nice-to-have-but-Im-not-at-all-sure-I-need-it category. $500, $600 maybe $1,000 depending.
- A larger place to live would you believe Ive found a house I can have for free if I move it? $20,000 plus the land plus the remodel. (Ok, Im a writer and all my craziness is grist for the mill.)
- Some summer clothes
where can I get skorts? $25 if I shop thrift stores, who knows if I go retail - $100? $200?
Yikes! Freelance writing means were in business for ourselves. That also means we are totally responsible for our own retirement, savings, health insurance, marketing expense, equipment and supply purchases, TAXES including self-employment (aka social security).
If Im smart about the income I earn from writing, and Im getting smarter, Ill put about 30% of the check in savings for taxes, and 10% or more in a prudent reserve (savings) account. Thats a full 40% before I get to pay even my rent and utilities, let alone retirement, health insurance and any marketing I may want to do.
The only way I know to approach all this is to set up an earning and spending plan essentially a spread sheet with expected income and projected expenses. When I do this, and I usually do a sheet for each month, I begin to really understand where my money comes from and where its going.
Now, if I can get my checkbook close to a balance .
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