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Plan for the unexpected to win in 2022 - Issue #16

Plan for the unexpected to win in 2022 - Issue #16
By Joseph Solomon • Issue #16 • View online
We’re almost through the first month of 2022.
Yup.
Just like that.
Anyway, I hope you had a safe and restful holiday season with your loved ones.
I really hope you took some proper time off to recharge!
I’d like to kick off this issue with a quote attributed to Benjamin Franklin.
It goes like this:
“If you fail to plan, you are planning to fail”.
The last couple of years has made most of us reevaluate our definition of “stability”.
In my opinion, the best stability is the one you can give yourself.
To give yourself this stability aka peace of mind, you need a plan.
Freelancing comes with incredible freedom, uncapped earning potential, and a distinct lifestyle.
It can also carry heavy financial stress which will force you to take any jobs that come your way, be underpaid for those jobs, continue to be financially stressed, hate freelancing, and the vicious cycle continues…
I believe that winning in freelancing requires a balance that cannot be achieved if you’re financially vulnerable.
You’ll be more capable of handling the times of slower work, bad-fit clients, delayed payments, and general unexpected life expenses that will come your way with a Contingency Fund (A fund for dedicated emergencies or unexpected outflows).
How to get the most out of your Contingency Fund:
1) Create a separate account just for the Contingency Fund. Some sort of tax-free savings account would be ideal.
2) Fund the account with at least $500. When there’s real money in play, we tend to take things a little more seriously.
3) Over time, save at least 10% of your freelance revenue in a separate bank account. Some sort of tax-free savings account would be ideal. You want to have funds to cover at least 3-6 months of expenses (including mortgage payments and rent). I’d recommend aiming for the 6-12 months range for a little more cushion.
4) Accurately track expenses. Finance tools like YNAB, Mint, Freshbooks can easily help you track expenses so that you can eliminate unnecessary costs. The more costs you cut, the more $$$ you can put in your Contingency Fund.
Bonus:
They say offense is the best defense.
Spend at least 20% of your week on sales and marketing activities. Automated marketing and sales + proactive client outreach will keep your sales pipeline full with quality leads for you to close.
Looking forward to helping you win this year!
Until next time ✌️
-Joseph

 

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