A collaborative post by Joseph Peake.
There are many great perks to being a blogger. You are your own boss, you dictate your own work schedule, and you can work from anywhere that you like. You get to write about things that you are passionate about and generally have a great work-life balance.
It is clear why so many people are looking at blogging as a source of income. But it is important to be aware, as a self-employed worker, it can be difficult financially. The amount that you earn can fluctuate greatly from month to month.
Therefore, it is important to know a few handy tips if you want to succeed as a money-savvy blogger.
1. Carefully track your finances
First, it is important that you get a clear overview of all your finances.
It should involve drawing up a spreadsheet which lists all of your income and your regular expenses each month. This should help you to get a clear overview of your financial situation and whether or not you need to make any urgent changes.
Carefully tracking your finances is also vital for tax purposes, so make sure that you are keeping accurate records and setting aside enough money to cover your tax bill too.
2. Create a budget
You can then use this spreadsheet to create a budget.
The 50/30/20 rule is ideal for money-savvy bloggers whose income fluctuates, as it works with percentages instead of figures. 50% of your income is spent on essentials (food, rent, etc.), 30% on savings/debt payments and the remaining 20% on non-essentials (clothes, going out, gifts, etc.).
You may want to tailor the percentages based on your financial situation.
3. Rainy day fund
If possible, a money-savvy blogger should put a regular amount of money aside into a savings account as a rainy day fund.
So if the work dries up or there is a sudden considerable expense, then you should be able to cope. Any amount is good, but people tend to recommend having around three months worth of essential expenses saved up.
4. Loans for money-savvy bloggers
Alternatively, if there is a sudden significant expense, then an online loan can alleviate your financial concerns.
These can be easy to apply for with handy resources online finding the best lender for your particular needs so that a quick decision can be made, which will get you the money that you need to cover the expense.
5. Supplement your income
Many money-savvy bloggers find it helpful to have a part-time job which can provide a steady, predictable stream of income. Even if it is just a small amount each week, this can help for difficult weeks and provide peace of mind.
Are you a money-savvy blogger?
Hopefully, these tips will make it easier for you to manage your money and provide peace of mind. Blogging can be a fun and rewarding way to earn money, but it can also be challenging to earn a consistent and high amount of money. This is why, as a money-savvy blogger, you must be smart with your money, carefully monitor your expenses and income and know what to do if you hit a difficult patch.