5 Secrets of Freelancers Who Never Stress about Money

How to start yourself off on the right financial footing in 2025

Author

Diana Kelly Levey
November 19, 2024

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This morning’s bank transaction was the inspiration behind this freelance newsletter.

I saw an automatic transfer of $1,500 hit my accounts, from my business checking account to my personal high-interest savings account.

It reminded me that I didn’t do this for several years and adopting this practice helped me manage my money stress.

Pay yourself a salary—even if you’re having a slow month.

It should be enough to cover your monthly personal expenses, taxes, and business expenses.

More on this tip below.

I’ve coached and worked alongside countless freelancers who’ve been at the top of their game—many earning $100,000 freelancing annually—only to realize they still don’t know where their freelance dollars earned are going.

If you’ve ever wondered where your freelance money is going and feel like you should be wealthier than you are, know that other freelancers feel this way, too.

Or, your freelance business is starting to take off but you feel disorganized on the accounting and admin side, these tips can help.

Here’s what financially confident freelancers do differently—and how you can join them on the stress-free side of freelancing.

1. They Invest in Learning New Skills and Tools That Pay Off

The most successful freelancers know they must keep their skills sharp to stay competitive. But here’s the thing: They’re smart about what they invest in. Instead of hoarding every penny or, on the flip side, blowing hundreds or thousands on every trendy course (ahem, been there), they invest in tools and training that provide a real return.

Think critically about where you’re spending your “business expenses.” Make sure they’ll help you get a leg up on the competition and be of use to your clients. Like an SEO course that will land you higher-paying freelance jobs or that project management software that cut your admin time in half.

(THIS is why I keep my freelance online courses to about 12 or fewer lessons. I want students to feel like completing one is doable so they can implement learnings right away.)

2. They Hire an Accountant Who Understands Independent Workers

Your accountant should be more than a tax pro—they should be a financial wizard who understands the freelance world and knows tax tips for freelance writers. Smart freelancers don’t try to navigate tax deductions or quarterly payments alone. They know they’ll miss out on potential write-offs!

A money-savvy freelancer works with an accounting and tax professional who can help them save money and avoid nasty IRS surprises. Seriously, a good accountant is worth their weight in gold.

And yes, the money you spend on a tax pro is a write-off.

3. They Keep Their Business and Personal Finances Separate

Mixing business and personal finances is a rookie move that invites chaos (and possibly IRS red flags). No bueno, my friend. See the Tweet/X post above.

Freelancers who take their business seriously understand the value of opening a separate bank account for all their business income and expenses. It makes tax prep so much easier.

Even if it feels like a minor hassle, do yourself a favor and set up a business bank account. Keep the business card in your wallet and set it up on all of your automated business expenses.

4. They Pay Themselves a Consistent Salary

Here’s a biggie: Successful freelancers treat themselves like employees of their business. I run my business DKL Content Services Inc. as an S Corp and I pay my sole employee (ahem, me) a salary. By paying yourself a set salary, you can plan your personal finances better, save for future goals, and—most importantly—reduce financial anxiety.They Think about Taxes All Year Long

5. They Think about Taxes All Year Long

This probably sounds like a stressor so hear me out. You should think about how taxes play into your business when you price freelance projects and when you get paid. Freelancers will eventually need to pay quarterly taxes in the U.S. (Uncle Sam doesn’t want to wait until spring to get paid for the work you’re doing). When you’re quoting a rate for a project — like how much should you charge for a 500-word article — you should be thinking about the 25 to 30 percent you’ll need to set aside for taxes. In addition to quarterly taxes based on the previous year’s earnings, you’ll also pay self-employment tax (about 15%).

The next time you’re thinking about taking on low-paying work that you aren’t excited about, subtract 30% from the rate and calculate your hourly rate. See how you feel about working for that number and move forward.

What are the smart money moves you do as a freelancer? Reply to me with your ideas!

Diana

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