What do you do if your finances as a freelancer are out of control?

For any business, cash management is the key. If finances are getting out of control, one needs to go back to the vision board, check priorities, pick the ones that needs urgent attention, like which activities will get me income, and which activities needs to be restricted to control expenses. Focus completely on getting money in the business. For controlling costs, try to work on commission or sharing basis so the fixed costs are under control. Cash management should be prime responsibility of any business owner, even if a freelancer.

Be your own coach and coachee. Ask yourself: 1. What specific factors or habits have contributed to my current financial situation as a freelancer? 2. How accurately do I track my income and expenses, and am I aware of where my money is going each month? 3. Have I set clear financial goals for myself as a freelancer, and if so, how closely am I monitoring my progress toward achieving them? 4. What adjustments can I make to my budget or spending habits to regain control over my finances and align them with my long-term goals? 5. Am I leveraging available resources or seeking professional advice to improve my financial literacy and better manage my freelance income and expenses?

When your finances spiralling out of control, the first step is establishing clarity. A simple yet effective system for tracking every expense to understand where your money goes and maintain positive cash flow—crucial for any business. A database I useful to understand decision patterns and learn from past financial mistakes or successes. In addition to reviewing each expense for its priority and alignment with your business vision, it's also beneficial to periodically reassess your financial goals. This reassessment allows you to adjust your budgeting and spending strategies as your business evolves. Also, automate certain tasks, such as invoicing and savings, reduce the cognitive load and ensure consistency in your financial practices.

When having chaos in your finances, the first and foremost is to make an analysis. Gather your financial statements, all your bills, invoices and all other dues and anything else you have pending do pay. Besides that, check what your monthly income is and compare. This reality check is essential to understand what you have and what you can afford. That might include a significant cut back on spending...

En cualquier ámbito que sea necesario tomar decisiones se necesita tener un mapa de información claro y preciso que permita analizar escenarios y definir objetivos. Esto es un presupuesto para mí, el mapa que proporciona la información base.

Una de las alternativas es ajustar el presupuesto hasta que el ingreso se acomode. Y si eso no fuera posible tenemos que salir de nuestra zona de confort y salir buscar en otros nichos, otra forma de trabajar y todas las alternativas en nuestro poder o a buscar.

Having gained clarity on your finances, it is also essential to establish a budget. This framework delineates your monthly allocation for necessities, savings, and discretionary expenses. Ensure practicality by accounting for irregular costs such as taxes and emergency reserves. A meticulously crafted budget acts as a valuable resource, helping you anticipate cash flow obstacles and mitigate financial pressure.

Consistent saving is fundamental to financial stability. Make sure you set aside a portion of every payment for savings, creating a safety net for unexpected expenses and financial downturns. Even small contributions add up over time, emphasizing the significance of saving. Consider it a primary obligation, like paying yourself first, ensuring your financial well-being in the long run. Another good tip is to make sure you budget for your savings. Identify your goal and slowly but surely work away at it!

I recommend starting with a financial management app that automates the tracking of income and expenses, providing a clear view of your financial health. This method simplifies budgeting, offering real-time insights and alerts to prevent overspending, while motivating you to save for taxes and future needs. Additionally, engage with online financial communities tailored for freelancers. These platforms offer guidance on budget creation, tax optimization, and managing irregular income, helping you stay financially sound.

When dealing with debt, prioritize prompt repayment to prevent it from snowballing. High-interest debts, particularly credit card balances, can quickly become overwhelming. Develop a strategy to tackle your debts, starting with those carrying the highest interest rates, while ensuring you meet the minimum payments on others. Reconcile your payments so that you are sure you have captured all debt.

When dealing with financial challenges like high expenses and low income, seek opportunities to increase your earnings. This may involve expanding your services, or pivoting and finding new clients. Periodically evaluate your pricing strategy, ensuring it reflects your experience and the value you provide to your clientele. Often clients surveys can assist you to assess how clients value your service.

Freelancing is a fantastic journey, but let's be honest – pricing your services can feel like a guessing game. I'll focus on it because here's the thing: undervaluing your expertise hurts everyone. And here's a quick tip to boost your confidence when setting rates. To start with, know your worth: research industry standards for your skills and experience. This gives you a solid foundation for setting your rates. And please don't be afraid to adjust your rates as you gain experience and expertise. By confidently pricing your services, you attract the right clients, value your time, and ultimately, increase your earnings to build a sustainable freelance business.

Take up more projects at this stage because that's the logical progression of a freelance career One can not dig the well when there is a fire. More projects, incremental rates, innovative ways of marketing yourself and constant investment back into your business will solve the problem in the longer run.

1. Evaluate Your Current Situation 2. Review Your Pricing Strategy 3. Consider Value-Based Pricing 4. Explore Additional Revenue Streams 5. Seek Out Additional Clients 6. Optimize Your Time Management 7. Invest in Skill Development

I'm often sharing with our Business Foundations cohort of early-stage WOC entrepreneurs how crucial it is that we invest in our business' growth––and not simply by leveling up our skills! Depending on the circumstances, we also have to invest in: - marketing - systems - team members and more, in order to build business that can grow, become sustainable, and even scale. I know that personally, investing in business coaching for myself has been a complete game changer that allowed me to 6X my business' revenue in 3 years' time. It was absolutely an investment that was hard, in a sense, for me to make at the beginning, but wow am I glad I did! The ROI is through the roof!

Investing in your professional development and business growth is an ongoing process that requires dedication, persistence, and a willingness to adapt to changing circumstances. By committing to continuous improvement and strategic investment in your business, you can create a more stable income stream and position yourself for success in the future.

Investing in your professional growth is crucial when managing finances as a freelancer. Set a quarterly goal to learn something new or participate in events that expand your network and business. This could be upgrading your skills through courses, coaching, engaging in industry networking events, or enhancing your marketing strategies. By committing to these activities, you improve your capabilities and increase your potential to attract higher-paying projects. Consider this a strategic investment in your future, ensuring a more stable and prosperous freelance career.

Ab investment in oneself is the best business/ career investment. You are the Business! So, invest in your related skills, certifications, personality, meetups and market yourself smartly. Keep a separate amount of your budget especially for investing into yourself. Read the trends, meet people and explore more.

First of all I doubt whether it is part of executive coaching or not, rather it could be considered as a part of life coaching. Anyway, whatever items mentioned majority of them are actions and if he/she does in diligently there is no guarantee of change in his/ her behavior. As a part of coaching, the job of a coach to help the client to change his or her behavior through self discovery. Internal behavior change is most difficult job for an adult but this is the only possible way to come out from our difficulties and challenges. I will suggest let the client drives his/her changes through self discovery and help from a coach to not only challenge him/her but also make him/her accountable for his/her actions.

Regaining control of your finances may take time and discipline, but stay committed to your goals. Celebrate small victories along the way and remain focused on improving your financial health over the long term. Make sure you have effectively invested money so that it keeps you calm and grounded. It's a 100-mile journey, so keep taking it step by step, ferociously! :)

I am not sure this is a topic for executive coaching. I would imagine this is better suited to someone who is qualified to offer such guidance/ advice.

Get some damn help!! If they are out of control then that is the most powerful sign that you cannot figure this out on your own. Get a coach. Get a coach. Get a coach. It’s not hard it’s just about deciding and acknowledging that you have reached your limits and it’s time to get some help. You don’t gotta overthink this one. Get some help.

The simplest rule to follow - always and always - is to spend only and only after you earn. Not before. Even then the spend must only be from the money earned less the amount invested into future growth.