Saving money ... you probably know it's important. And you probably want to. But how? There are so many fun things to do and there are also so many good investments you can make. Still, it's important to save so you can make bigger investments. Here's how you can save money and eventually achieve "higher" goals.
Set goals
It is easier to save money if you know what you are doing it for. Therefore, set goals for your saved money. For example, do you want a new laptop, actually for a year, but don't have enough money each time? Calculate how expensive your laptop is and how long you need to save per month. But small goals help, too. Want to have a coffee every week (possibly working) in a new bar? That's about €15 a month plus another ten for lunch at the nicest bar that month. Write down your goals somewhere you can see them clearly so you know what you're doing it for.
Save a fixed amount per month
As a freelancer, it's hard to say what your monthly income will be. Still, it's important to set aside money each month so you're sure to save something. Schedule an automatic transfer to your savings account. Make sure you have a billing deadline close to that day, so you have the money in before it is debited each month.
Create a budgeting
I live on my budgeting. I have a monthly budgeting and an annual one. The annual budgeting includes my vacations and other big expenses like my MacBook or a new phone. Set a budget for yourself for fun things and groceries. I have €400 a month for that together. Do keep in mind high costs that you can expect in advance. For example, when I was moving, I knew I was going to exceed that €400,-. New bed, refrigerator, pantry items, subscriptions, and so on. It has to remain realistic, it's just really not possible to stay within the set budget then, but I did make investments that I would enjoy for at least a few months. Include your fixed expenses, such as rent, phone plan, charities (good for your karma!) and health insurance. I update my budgeting every month.
Go for second-hand stuff
To get back to my new bed and fridge; my Auping bed including mattresses and cabinets cost €25 and my used fridge cost €15. Really super cheap! It did add costs for renting the van and my dad's travel expenses (because I didn't dare drive myself) plus a dinner at my expense because he helped me. But €40 for a bed and a refrigerator is really very little money. Second-hand shopping is really great. My first MacBook was also second hand, it cost €600 and I enjoyed it for three years. My iPhone 6s cost €325 and has been going for a year now. I am also a huge fan of second-hand clothes shopping. I scored my Vince Camucci bathing suit worth €190 for a tenner. So shopping second-hand saves you a lot of money, but you also make someone else happy, because they get rid of it. And it's much better for the environment. Finally, you come across unique items. What are actually the drawbacks!
Close barter deals
In a barter deal, you exchange services. For example, I did barter deals with an SEO expert. I made banners for him and he analyzed my website. A friend of mine is a photographer, he takes photos of models if he can use them for his website and the models use the photos for their portfolios. There is no money involved, so there is also no tax or time for billing and bookkeeping. Think carefully in advance about what you offer and what you get in return. Calculate how much time you will spend on it and at what hourly rate you normally do it. Then barter deals can be very valuable.
