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  • Writer's pictureGalia Gichon

First Money Step For Freelancers

Updated: Jul 13, 2019

Did you check out my article in the December 2013 issue of REAL SIMPLE? It's a great reminder to take care of yourself during the holidays.

As part of my upcoming workshop "PERSONAL FINANCE FOR ARTISTS AND FREELANCERS" I realized that many people don't even know where to begin.  Therefore, you are stuck and can't make your money goals become a reality. This article will help you get unstuck with your money goals and start seeing some results!

The first and most manageable thing a freelancer can do is get their snapshot as to where their finances are today.  It can be summarized in 4 simple words:


The key is not to get overwhelmed by all the text and just boil it down to four numbers.  Try to gather these four numbers every month.

* OWN: What exactly is the amount of their investments, bank accounts and any other assets? It could include non-liquid assets such as art.

* OWE: What is the exact dollar amount that they owe in cre.dit ca.rd, student, IRS back ta.xes, business lo.ans and friends/family loans? They should check their credit report as well because that is the number that the lenders look at, not the ones on your credit card statements.

* SPEND: What is the total dollar amount that they spend on a monthly basis? This is not just their fixed expense such as rent/mortgage. This includes variable expenses, business expenses have they spent over the year but averaged to a monthly number.  This is probably one of the most important numbers a freelancers needs to know!

* EARN: What exactly did the freelancer earn YTD? Last year? What are their projected numbers for the next 3 months? While this seems obvious, most freelancers don’t know this number!  This is the only number out of the 4 topics that is variable and can’t be as easily controlled.

To your financial success,


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