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Today's freelance writing market is cluttered, making it more difficult for professionals like you to find consistent and lucrative writing gigs. However, you can increase your employability by writing for a niche that is in demand and pays well. The tech niche fits the bill. As the world relies more on technology in just about every industry, the demand for freelancers who can cover these topics is sure to grow. Writing for the Tech NicheHow do you move into a specialized niche to increase your income? Start by researching what potential clients are looking for in the tech industry and build from there. Update your portfolio with a few tech pieces or posts. Choosing a freelance niche like this will increase your odds of getting a gig. It also helps you focus. Limiting your portfolio or marketing materials to a sole niche makes it easier to know what topics to cover. Another advantage is knowing which projects to turn down. By focusing on a particular area of tech, you can say no to less lucrative pieces or topics that won't build your career. Choosing Your Tech SpecialtyTechnology is invading every industry, from finance to agriculture. Smart devices impact every field with tools like automation, genetic improvement, faster services, and so much more. Savvy freelancers will hyper-focus their niche to target the best industries. How do you find the best freelance niche for your career? Start with your experience. What freelance contracts or articles in the tech industry have brought you success? Which ones failed and why? You should also gauge your skills with technology outside of writing. This can include:
Next, research the niche with Google. Activating incognito mode in the search engine will clear out personalized results to give you a more accurate look at a topic's popularity. If you determine a need in this specialized tech field, claim your niche. Claiming Your NicheClaiming your niche can be as easy as redirecting your portfolio and website to the industry. But you should also market your skills directly to the proper industry. Use a skill-matching service or seek out writing gigs in that particular niche. What are some hot topics that pay well? Here are some of the latest tech trends: Artificial IntelligenceArtificial intelligence, or AI, is changing how companies in every industry do business. By taking over work traditionally done by humans, AI provides more accuracy, speed, and adaptability. It also employs machine learning, which is how computers improve their functions in a particular operation over time. Modern AI examples improve research efforts because:
As you can see, specializing in the AI niche affords opportunities across numerous industries. Supply ChainRecent global challenges have interrupted supply chains, creating food shortages and harming manufacturing businesses. Modern technology can address these issues by improving supply chain analytics. Suppliers can automate their systems by integrating data and business intelligence platforms. This will help improve inventory challenges, such as forecasting customer needs, stockpiling supplies, and optimizing the fulfillment process to quickly and accurately ship orders. These improved supply chain analytics help companies save money, making it a popular topic to write about. Metaverse, Web3, and DesignThe internet is evolving. Web3 and the Metaverse are changing the way people interact with technology. What's the difference between the two? Web3 is run on a decentralized network, meaning no one company runs or influences it. This provides the backbone of cryptocurrency. The Metaverse is a shared digital reality where you can interact with others. It’s built on virtual reality (VR), in which users don goggles to immerse themselves in a digital landscape, and augmented reality (AR), which blends VR without removing real-life experiences (or vision). These technologies work closely together. Web3 allows you to enter the Metaverse. Critical to this system will be the development of user experience (UX) and user interface (UI) design that helps users navigate the system safely with an enjoyable experience. This young field is the future of digital interaction and will provide many opportunities for reporting. CybersecurityEach of these innovations puts both stakeholders and consumers at risk from hackers, malware, cyberattacks, and other security concerns. As long as hackers come up with new ways to break in, “white hat” developers will create new tools to block or eliminate them. Since cybersecurity is a broader tech niche that touches every industry, this is an excellent niche to choose. These are just a few examples of the many niche topics within tech. As more industries expand their reliance on technology, more opportunities will come your way. Marketing your skills for a hyper-focused tech niche in a growing field will lead to a lucrative freelance writing career. via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/29/why-you-should-claim-a-tech-niche-as-a-freelance-writer/
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While the current investment market may not have created ongoing capital gains for many people, it certainly may have created some capital losses. A capital loss occurs when you sell a stock or an investment at a lower price than you originally bought it for. If this applies to you, take heart, you may be in a position to leverage tax-loss selling to reduce your freelance tax obligations before the end of the year. The end of the calendar year is when many investors consider whether it is beneficial to use tax-loss selling of stocks to reduce the amount of tax they need to pay on capital gains and potentially other tax obligations. You can deduct up to $3,000 per tax year in capital losses, if they are qualified and not part of a wash sale. Note that wash sale rules apply to securities, but at the present they do not apply to cryptocurrencies. This may change in the future. In addition, certain states may not allow you to carry forward a capital loss. For example, New York and California allow for this but not New Jersey, so check your own state rules to make sure you follow compliance. What is a wash sale and how can it affect your freelance taxes?Current tax law states that if you buy a security within 30 days before or after selling it, any losses from that sale cannot be counted against reported income. This regulation is designed to remove the incentive to do what is referred to as a short-term wash sale. The IRS is well aware of the potential to use tax losses to offset capital gains and more, so here is how the IRS defines and tries to prevent a wash sale:
Obviously, the wash rule is something you want to avoid, and you can do so and still use capital gains to offset your losses and reduce your freelance tax bill. Here’s how:
It is also important to know the capital gains tax rates for your specific situation. Here are the 2022 capital gains tax rate thresholds:
Source: IRS.gov Of course, taxes should not be the main driver of your investment planning, but it is important to understand how to leverage losses to reduce any capital gains and also to guide your overall tax planning strategy. As the year closes, consider this information as you assess your tax situation and your overall investment strategy with a tax and financial planning professional. via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/28/how-to-use-capital-losses-to-reduce-your-freelance-tax-bill/
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A traditional 9-to-5 job has its advantages, the most significant being a steady and timely paycheck. Conversely, freelancers are often paid late, if at all. Ultimately, This drawback shouldn’t stop you from living the life of your dreams. So what should you do to get paid on time and deal with overdue invoices effectively? In this article, you will read about tried-and-tested methods to get faster. Let’s take a look at the three ways to remind someone to pay you. Three Ways to Remind Someone to Pay YouFreelancers usually rely on the three ways to send invoice payment reminders — email, phone, and in-person meetings. Let’s review them and find the best option for your case. 1. Via EmailEmail remains one of the most conventional remote work tools to remind clients about unpaid invoices. Here is how you usually use it. Once a due date for paying an invoice has passed, you should write a well-thought-out message to a client reminding them to pay your invoice. It often works, but it takes so much time when you do it manually. Also, you must remember invoice due dates — you can set up reminders in your calendar. But — wait! There is a much easier way to do it all. When sending an invoice reminder email, ensure you send it to the correct email address. You can also automate the whole process with invoicing software. Most invoicing tools have automated reminders to send before an invoice's due date (to remind clients the due date is approaching) or after a due date has passed. Setting up automated reminders shouldn’t take you longer than a few minutes. However, finding the right words to include can take more time. Don’t bother yourself with making up your template, but use the ones that work below. Invoice Reminder Email Template — Before the Due Date
Subject: [Your company’s name] [invoice number]
Content: I hope that this email finds you well. I am writing to follow up on invoice [invoice reference number], totaling [invoice amount], sent on [date sent initial invoice]. This invoice is due for payment on [invoice due date]. Please could you kindly confirm receipt of this invoice and advise as to whether payment has been scheduled. I have attached a copy of the invoice for your reference. If you require any further information, please let me know. Best regards, Invoice Reminder Email Template — After the Due Date
Subject: [Your company’s name] [invoice reference number]
Content: I hope this email finds you well. I just wanted to drop you a note to remind you that invoice [invoice number], totaling [the amount on the invoice], is now overdue. I have attached a copy of the invoice for your reference. I would appreciate an update on the status of my payment and when I should expect to receive compensation as soon as possible. If there are any questions or concerns please feel free to contact me via [Phone no., email, etc.]. Best regards, 2. Via PhoneCalling them can be the next step when email doesn’t work, and your client hasn’t paid yet. You can do both simultaneously as a follow-up — first, send an email, and then, if you don’t receive a response, follow up by calling their office. The reasons why phone calls work are simple. When reading an email, a client has time to think of a clever response, but when they are called, they must respond immediately. This way, they are forced to disclose a genuine reason for not paying an invoice. Use email opens and responses as a part of intent data — opening an email but not responding for a few days can signal you to start calling your client. Phone calls also introduce a sense of urgency. When asked in person, your client is more likely to prioritize your inquiry and will pay your invoice right away. So what should be your action plan when you want to make a phone call? Remember to prepare — find a phone number, write a script, and keep the overdue invoice for quick reference. Let’s start with the first one — finding a phone number. You can locate a phone number in the email footer (if you were in email communication with your client before). Another way to find the correct phone number is by searching your client’s website. When you are ready to dial the number, you should also have a script to follow. You can use this one (modify it slightly for your needs): Hi, it’s [your name] from [your company name]. [The time when you delivered the service], I worked on [service] for [client’s company]. Are you satisfied with the deliverables? Your client will likely respond by saying everything is fine (or connect you with a better contact person). After you hear a positive response, you should proceed with a more detailed description and can say the following: That is wonderful! I have reviewed my records recently and found out the invoice for the service hasn’t been paid yet. Have you faced any difficulties when performing the payment? Could you please let me know when I can expect the payment? If your client has forgotten to pay the invoice, they will immediately pay you. But it also can happen that the reason behind missing the payment was different. You might want to ask follow-up questions to find out why your client hasn’t paid yet and suggest another deadline for paying the invoice. Your script can be as follows: “I am sorry to h ar that. When do you think you could pay the invoice? Let’s think of a solution together.” Later, you can ask your client to write you a confirmation email with a declaration to pay it within the agreed timeframe. But what if the client doesn’t respond to a phone call? There is an alternative — meeting a client in person. 3. In PersonMeeting your clients in person can be an excellent reminder of unpaid invoices, especially if such instances repeat. Usually, you should schedule regular catch-ups with clients— lunches, in-office meetings, or video calls. Use your catch-ups to remind about due payments — don’t make it a big deal, but rather make it sound like a kind reminder after everything else has been discussed. Reminding clients to pay before an invoice due date can reduce your waiting time for the payment (especially if the main reason for delays is their forgetfulness). If they have more serious reasons for not settling the payment, you can quickly figure out a way to make payments more manageable. For example, you can suggest paying in installments or finding another compromise. Keeping your communication line and supporting clients in being transparent will save you time and effort in regaining money. Good Practices to Collect Payments on TimeSo you know how to remind clients to pay you once an invoice is overdue or is close to the due date. Although confrontation is difficult, following up with clients and ensuring payment is paramount. Work deserves pay! Here, you can find tips that will help you receive money on time or even before you start working on the project. Collect Upfront PaymentsEstablished companies often require upfront payment of up to 100% of the amount stated on the invoice to improve their c sh flow. Why can’t you do it as a freelancer? Make an experiment — ask clients to pay at least 25% of the amount before you start work. You will be surprised that most of them will agree to send a payment earlier. Start working on the project only when you have received at least a part of the payment. Show GratitudeThank your clients for paying you on time. Showing some gratitude creates a positive impression and reinforces their actions. Your clients will feel more incentivized to remember your invoices. You can send a thank you invoice by email or a handwritten letter by traditional post. Incentivize Early PaymentsSome clients are used to being late with payments. But what if you create powerful incentives for them to remember to do it on time? For example, you could give a small discount on prices performed a week before the due date or upfront. Use Plug-insIf you are using WordPress, install useful WP plugins that help you automate sending an invoice reminder right from the interface. This solution is advantageous if you work a lot with your CMS — this way, you have all your work tools in one place. Write Short Payment TermsMake it clear when the invoice payment is due. It’s ok to have short payment deadlines — for example, ask for a 7-day payment deadline. You have to put the terms in a visible place on your invoice template, so a client can easily refer to it when scheduling a payment. Offer Multiple Payment OptionsSometimes, payments are delayed because clients can’t perform a payment (they don’t use a payment provider you are using). In these cases, it’s worth talking to your clients to find out their preferred way to pay and make sure you offer them. Wrapping UpDelayed payments and unstable cash flow are the issues freelancers have to deal with every day. Finding effective ways to influence clients’ payment habits can save you time and effort. So here you go — you have got some tried-and-tested techniques and scripts you can use to get paid faster. It’s time to test them out with your next invoice. via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/24/how-to-get-paid-on-time/
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Freelancers live and die by time management. Whether you need to keep the meter running or beat the clock on a fixed-rate project, controlling your time is key! But it’s also hard to do. When I started freelancing, I consistently over or under-scheduled myself. And I am very much past the days I could pull an all-nighter to pick up the slack! It was a mess. After some trial and error, I created a system that keeps me booked, productive, and not overwhelmed (most of the time). In four easy steps, here’s how it works, with suggested reflections for you. 1. Think units of energy, not timeMost of us think of our workday in terms of time. But our raw material isn’t time, it’s energy. Anyone who’s ever done their own taxes knows that not all hours are created equal. I’m a writer, and my nemesis is SEO landing pages. I can literally feel my soul leaving my body. But when I’m cruising through revisions on a blog post, time flies. So the first step is to stop scheduling yourself for a set time and switch to an energy-unit day. (Tip o’ the keyboard to Maggie Karshner for the energy unit concept.) An energy unit is the amount of time you can stay focused. When I’m writing a blog post on a topic I love, a unit is 2 or 3 hours long. Scheduling a dentist appointment uses up a unit in about 5 minutes! Pro tip: Maggie recommends planning for 5 units a day. For me, that’s too many. I average around 3. Pick the number that reflects your desires, capacity, and work style. The 40-hour workweek is made up anyway! Your turn: What’s your shortest unit? Your longest? How many units do you have available on an average day? 2. Understand your energy typesEven after I switched to using energy units, I felt overcommitted. Why? Well, it turns out that not every energy type is created equal. For example, first drafts kill me. It takes a lot to confront that blank page. I only have one unit of that high-focus energy daily, and if I don’t use it by noon, it expires! But I have at least two units of regular-focus energy. Research, revisions, invoicing; if it doesn’t require all my attention, regular-focus energy works just fine. Your turn: Do you have different types of energy? Are there things you can only do at certain times of the day? What else affects your capacity? 3. Put your self-knowledge to workThere’s no app for this, unfortunately. I had to go DIY to create my system. Here’s what I did:
Now imagine your client asks you to do a second post. Stick up post-its to see if you can! They’ll warn you about bottlenecks before you’re trapped in them.
Your turn: Try making your own calendar. You don’t have to use La Croix boxes, but they are cheap and effective! 4. Don’t panic!Seeing my work (aka, rent-paying) capacity laid out in post-its was not a vibe. It didn’t look like nearly enough. (Spoiler alert: It wasn’t.) It was understanding exactly what I had to give that empowered me. It pushed me to raise my rates and rebrand to attract clients who could pay them. It helped me decide whether to keep freelancing or get a full-time job. Ultimately, it allowed me to see my situation with clear eyes so I could make informed decisions. If you’re feeling frustrated with time management, give my method a whirl. Feel free to experiment until it’s the perfect fit for you. I hope it puts you back in the driver’s seat of your time and energy. via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/22/how-to-take-charge-of-your-time-in-4-steps/
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As we stare down the barrel of another recession, I am incredibly grateful that I work for myself. When you work for other people, you put your life in their hands. When you lose your job, you lose your only source of income, your benefits, and your livelihood. Freelancers are naturally more resilient than the average 9–5 employee because we’ve built flexible, decentralized business models that mean we never rely on income from just one source; we have decreased our dependence on the opinions and control of others. On top of all the reasons freelancing is more secure than a 9–5 job, freelancers are better positioned to find work in a recession economy. Hiring freezes don’t mean that the work stops; it just means that there are fewer people to do it. Companies are turning to freelance talent to fill this gap. A recent study by Upwork found that a majority (56%) of hiring managers that engage independent talent say they have increased utilization of independent talent over the past 12 months. And 58% plan to increase the utilization of independent talent over the next six months and the next two years (66%). Freelancer.com reported that job postings for software developers increased by 54.7%, and coders increased by 45.5% in the third quarter. This is compared to new job postings by U.S. employers for full-time IT workers, which fell 12% according to CompTIA. On a broader level, companies are leveraging freelance talent to make their businesses more resilient in an increasingly uncertain world. The same Upwork study found that 79% of companies agree that working with independent talent enables their business to be more innovative. 84% of hiring managers who work with freelancers say they are confident in their company’s ability to respond to disruption, compared to 69% of those who do not use freelancers. All of this means that freelancers are naturally more antifragile than 9–5 employees — we thrive in uncertain times instead of becoming victims to them. “Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better.” Want to thrive through the upcoming recession? Here are a few ways to do that. Hit Up Your NetworkGo on a listening tour with your colleagues and clients to let them know you’re here for them in this uncertain time. This doesn’t have to suck. Pick the people you actually want to reconnect with and send them a personalized email or text, or give them a call and ask if they’d like to catch up. Even if it seems like they wouldn’t be a potential client, you would be surprised at how peripheral connections can turn into solid client relationships. Plus, it is nice to have an excuse to reach out to someone you haven’t seen in a long time and reconnect. When the shit hits the fan, you will be at the top of their list of people to ask for help. Diversify EverythingYou know the saying: don’t put all your eggs in one basket. And yet, society wants us to believe that getting all of our income from one source is somehow “secure.” Spread out your risk and dependence however you can — more clients, more income streams, more investments, more people to rely on — when one fails (and it will), you’ll have others waiting in the wings. This rule goes so much further than money and material goods. You also want to diversify your ideas and not get stuck in one definition of what’s true, right, or possible. Give yourself the freedom of an open mind — diversify your sources of information, explore divergent opinions, and have real-life conversations with people who don’t “think like you.” Never Plan Further Than Six Months in AdvanceA year ago, would you have predicted where you would be today? Do you believe the same things? Do you have the same goals, the same problems? Do you spend your time with the same people? I’m not saying don’t save for retirement, put money in your kid’s college fund, or take out a 30-year mortgage; I’m saying make the majority of your plans shorter-term to balance out the inherent instability of long-term strategies. Planning in shorter cycles will make your plans more effective because you’ll be able to adjust with new information you didn’t have before. The person making that five-year plan today is not the same person who will be living that plan in five years. Plan your life and goals in short cycles so you can do what you want now and not marry yourself to some theoretical definition of success in the future. Freelancers can leverage tools to make our businesses more resilient in uncertainty, even as we help our clients navigate the same struggles. As systems and structures around us fail under the pressure of uncertainty, we can build antifragile structures for our own lives, laying the foundation for the new structures that need to be built in society. Top-down solutions, rarely successful to begin with, are no longer serving us. The complexity of the problems surrounding us has to be addressed from the bottom up; by those of us who have skin in the game have everything to lose. “Difficulty is what wakes up the genius.” Freelancers are at the forefront of this new world where we take control of our livelihood and help other businesses thrive in uncertainty. via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/21/are-freelancers-recession-proof/
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Being a freelancer is one of the most liberating things you can do. You can work wherever you want, whenever you want and with whomever you want. But, some hidden challenges to being self-employed don't come up when you have a permanent job with an employer. One such challenge is managing your health as a female freelancer. The reality of being a freelancerIf you're considering freelancing, it's essential to know what you're getting yourself into. As a female freelancer, the reality of being self-employed can be tough to manage. You'll have no sick days or holiday pay and instead need to take care of your health and finances. In addition, there are no HR managers or accountants in charge of ensuring your business runs smoothly every day – it's all on you. However, as with most things in life (especially when they're new), if something sounds too good to be true, it probably is! Freelance work does have its upsides:
Self-managing your health and well-beingIf you’re a freelancer, self-management is key. This means you must ensure that your health and well-being are taken care of to stay productive. You should take time out for yourself every day. If you don’t, it could result in burnout or stress, the two most common causes of illness among freelancers. To maintain good mental health, do things such as exercising or meditating regularly – the more these practices become part of your everyday life, the better they will be at helping you cope with stressful situations. For physical health, make sure that your diet includes plenty of fruits and vegetables and try not to eat too many processed foods (such as ready meals). Try going outside for walks whenever possible so that the fresh air can help clear your mind from negative thoughts that may cause anxiety if left unchecked for too long! Protecting your health as a freelance workerAs a freelancer, you're your own boss. This means it's up to you to manage your health and well-being at every stage. For working parents, there are many benefits to working on your own. You can plan projects around family life, and have greater flexibility juggling all your different home and work-life responsibilities. However, protecting your health is especially important with so much on your plate. Women are more likely than men to suffer from depression and anxiety due to low pay or other factors associated with being self-employed. It is, therefore, essential for expectant mothers, pregnant or breastfeeding women to prioritize self-care, especially as women’s bodies can be more sensitive during these milestone moments. This might include dealing with unplanned healthcare checks, scheduled and routine appointments, as well as unexpected health issues, such as having sensitive teeth during pregnancy, making it to important dental appointments, and routine eye-care checks. The good news is that there are many ways in which you can protect yourself from the above issues by taking care of yourself and being proactive about what matters most: your body! US and UK pregnancy and maternity rightsPregnancy and maternity rights are a worry for freelancers in the UK and the US, but they don't need to be. In the US, there can be obstacles to overcome when taking time off for pregnancy and maternity leave. As a freelancer, any company you’re working for is not obliged to pay for you to take maternity leave. Although the Family Medical Leave Act (FMLA) requires that US employers (of more than 50 people) should allow mothers and fathers to take unpaid time off of up to 12 weeks, this does not apply to freelance staff. However, US states do have pregnancy insurance health programs (or Disability Benefits Law (DBL)) that you can opt into (and doing so as soon as possible is the recommendation!) if you are a freelance worker. In addition, health insurance companies and businesses opting in to insurance schemes can provide freelancers with a standalone Approved Paid Family Leave policy or a ‘PFL’. A PFL can be issued to an employer who self-insures its DBL benefits or to an employer who provides voluntary PFL benefits pursuant to Sections 212-a and 212-b of the Workers’ Compensation Law. With a wealth of well-documented evidence to highlight the gains and economic benefits awarded to US companies who do support and value pregnant women, the support system for freelancers looks good. Meanwhile, in the UK, where statutory maternity healthcare is available to contracted employees, self-employed and freelance staff are eligible for a Maternity Allowance. Within a company, you must have been self-employed for at least 26 weeks in 66 weeks before your baby's due date. You must earn £30 per week or more in at least 13 weeks – these weeks do not need to be consecutive. However, your company may choose to provide Maternity Allowance instead of statutory maternity pay. And, if you're self-employed with your own limited company, there are some additional considerations for making sure you're covered. It is also important to note that you can't get statutory maternity pay if you're a sole trader – but you might be able to claim Maternity Allowance instead. You might be able to get statutory maternity pay if you're self-employed with your own limited company. Your company could pay your statutory maternity pay and reclaim it from the UK Government’s HMRC. How to prepare for parental leaveHaving a plan for your business is essential if you're going to be away for an extended period. This will help avoid any unnecessary stress during what is already a stressful time. Remember that taking leave from work is not the same as taking sick leave or vacation days; it's more like taking an unpaid sabbatical. Make sure you've saved up enough money in savings so that if your income stops, you can still cover expenses like rent/mortgage, utilities, and food. It's also worth considering how much money needs to come into the household each month – and whether some of those expenses can be reduced while you're away. Plan ahead so that there are no unexpected financial surprises on either side of the equation when it comes time for parental leave. Returning to work as a freelancer after maternity leaveWhen you return to work after maternity leave, you'll want to make sure that you're prepared and ready. Plan ahead. Don't dive back in without thinking about how your work will affect other aspects of your life. If possible, try to find a way to get some kind of structure into your day so that things don't fall apart while you're gone. For example, if there's a task that needs doing regularly (like sending out invoices), consider setting aside time in advance, so it doesn't pile up when you come back from leave. That way, all the hard work has already been done! Be realistic about how much time it will take for everyone involved – both at home and at work – to adjust once again after such an important break in their routine. It might be tempting for them to expect everything else besides themselves to go on as usual without much thought about whether this is realistic given what's happened within their world over the past few months (or even years) but if things start falling apart quickly then maybe look at rethinking some aspects of what goes on around them instead! Health insurance for freelancersHealth insurance and dental insurance are a must for freelancers, but finding the right policy can be tricky. As you look for health insurance that meets your needs, here are some things to consider:
Making sure you have both medical and dental insurance is important because if anything goes wrong with your health or teeth, it can be tough to work while you sit on an NHS waiting list. Mental health for freelancersMental health is just as important as physical health. Mental health problems, such as depression and anxiety, can be caused by your job or external factors. It’s important to understand what to look for when it comes to your mental well-being so you can get help if needed. If you are feeling anxious, stressed, or depressed, look for sites/services that offer tailored mental health support for freelancers and self-employed workers and:
Make sure you make a habit of looking after yourself and treating yourself. Use self-care as a preventative measure rather than waiting until you burn out. Self-care can include making hair appointments, getting your nails done, or getting your teeth whitened (just make sure you look after sensitive teeth after whitening! Self-care can also be as simple as taking time for yourself and reading a book, having a bubble bath, or taking your dog for a stroll outside in nature. As a female freelancer, it's important to know your rights and look after your health. Various issues can affect the health of a female freelancer, from understanding your maternity rights to looking after your mental well-being. For example, knowing when you're entitled to parental leave is vital. You can also take steps to prepare for taking time off in the future. We hope this article has helped you to understand the health issues that freelance women face and how they can be overcome. Freelancing is an exciting career choice, but it also comes with its own set of challenges. via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/17/priority-number-one-how-to-look-after-your-health-as-a-female-freelancer/
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One of the biggest challenges creative freelancers share with me is knowing how much to charge for their services. Can you relate? If you can, you’re not alone. Pricing something as subjective as creativity can feel like a confounding riddle at best and an impossible task at worst. Throw in limiting beliefs, scarcity thinking, and discomfort talking about money, and you’ve got a holy mess on your hands. Is it any wonder pricing remains an issue for so many? So, you stick to what you know (even though you know they suck!): ? Hourly rates ? Now, as a business coach who helps creative entrepreneurs and freelancers build profitable creative businesses, it’s probably no surprise that I really, really, really don’t like hourly rates as a measure of value and results. Not least of all because the more experienced you get, the faster (and seemingly easier) you’re able to deliver out-of-this-world solutions. And in an hourly model, the only way to get paid for the value you deliver is to charge a sticker-shock hourly rate. And who wants to be on a sales call quoting that number? Now, I want to be clear. This post is not your typical coach rah-rah about charging what you’re worth with no support or tools to back you up. This post is based on 20+ years of creative industry experience, 15 of which were as a rep writing proposals and negotiating fees for some of New York’s top-tier talent. This post is based on what works. If you’ve been stuck in an hourly model you don’t know how to break out, read on for 3 things you need to know to price your services with confidence. Before we jump in, I have some good news and some bad news. Which one do you want first? Let’s start with the bad news and get it out of the way. I regret to inform you that there is no “pricing menu” that you just don’t know about yet. I wish there were. However, there are some fantastic guidelines and best practices, one of my favorites being The Pricing & Ethical Guidelines by the Graphic Artists Guild. But ultimately, the art of pricing is part industry standard, part experience, and expertise, and part defining your way to a price that feels fair to you and the client. While there’s no universal formula for this magic, there is a framework for finding your way to pricing with confidence. Step 1: Look at pricing within the context of your whole business.One of the biggest pricing challenges I see freelancers experience is looking at pricing without context. They may see so-and-so charging a certain rate with no knowledge of what it takes to run that person’s business. Revenue has surprisingly little bearing on profitability. So, let’s start with the definition of a profitable business. To me, it’s a system that reliably generates consistent and predictable revenue with money left over (after all expenses are paid) to be used however the business owner chooses. Examples might include expansion, equipment, hiring, education, marketing, profit distributions, etc. This is not to say there will always be money left over. Or even that you’ll always make your monthly nut (good months and bad months come with the territory). But this is the gold standard of what we’re aiming for. Sound good? Here’s where pricing comes in. If your goal is to grow as a business owner (which requires investing in yourself), hire a support person or two (investing in operations), or grow your business in any way (branding, marketing, technology, etc.), you need to generate more revenue. Step 2: Define what kind of business you wantAs freelancers and entrepreneurs, we need a highly attuned BS detector. Why? Because from morning to night we receive messaging that the only business worth having is 6 or 7 figures (+). Maybe. Maybe not. Neither is wrong, but the question is, are they right for you? Instead of chasing an arbitrary number and reverse engineering into a pricing model that supports it, I encourage you to ask yourself a few questions. Here are a few to get you started:
The answers to these questions will help you identify what kind of revenue you want to generate and therefore the services and pricing that support that outcome. Step 3: Choose the pricing structure that supports your goalsIf the only pricing lever available to you is increasing your hourly rate, you’re going to hit your ceiling sooner or later. And once you do, you also hit your ceiling for expansion and growth. And that might be just fine with you, that’s a perfectly acceptable business model. But if it feels limiting, then we need to look at alternative pricing strategies. Let’s start with a couple of different scenarios. Let’s say, you answered the questions above and determined that you want to build a marketing agency with several people working for you, freeing you up to position and market the business to your target clients. Maybe your ultimate goal is to have the business run without you, so you can travel, start a family, work on a new project, and sell the business when you’re ready. This kind of business will most likely need to be billing multiple 6 figures to 7 figures. To reach these numbers you’re looking at a value-based pricing model, rather than hourly or hourly-based project rates. Think retainer fees, membership fees, or value-based project/consulting fees. Now, let’s say you’re a sole practitioner and you determine that you love working with your clients in a high-touch way. Because you are personally delivering much of the value, you want and need fewer, better clients. Ideally, those clients are high-quality, well-paying, good referral partners, and ongoing, (minimizing your need to be constantly looking for new clients). This model still allows you to increase your revenue and grow, as long as you make the shift from hourly rate quotes, to value-based fees. To keep overhead low (and profitability high), the name of the game is streamlining your efficiency to enable you to spend the majority of your time doing your zone of genius work. This kind of business might generate $250,000 and be highly profitable and satisfying. Pricing models might include package, project, or retainer fees. Of course, there are approximately a gazillion ways you can slice and dice business models and pricing strategies. Hopefully, these two brief examples give you a few ideas about how to think through your unique model. If pricing still feels like a beast you don’t much feel like taking on, let me share this: after 20+ years of doing this, I’ve learned that pricing is as much of an art as it is math. The more you think about it, learn about different ways to do it, experiment, and practice, the better you get at it. Don’t be afraid of it. Just give it a whirl! via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/16/why-is-pricing-so-hard/
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As the end of the year approaches, it’s key to ensure that you keep your records up to date regarding all income and taxable revenue you are generating from any source– including hobby businesses. Many freelancers have multiple revenue streams, some of which may involve a unique hobby they try to monetize. If this applies to you, it is important to determine if your hobby is actually a business because the IRS will require you to pay taxes on the income derived from it. If you do not meet the qualifications for a genuine business, then you cannot deduct expenses. How does the IRS determine if you are running a business or just have a hobby? There is a nine-point checklist that they use and apply on a case-by-case basis if this determination needs to be made for tax purposes. These are outlined in the questions below. If you are not sure where your side hustle or freelance activities land on the spectrum of a hobby vs. a business, use the questions below to help make the determination and keep in compliance with IRS guidelines. If most of your answers are yes, you are really operating a business and will have to factor that into your tax considerations.
If you have a business that has grown from a hobby, here is what you need to know about your tax obligations: Know which hobby deductions are allowed. You are usually entitled to deduct ordinary and necessary expenses within certain limits. The typical expense is common and accepted to complete your side hustle and a necessary cost appropriate for your side hustle. An example would be if you are a writer, an ordinary expense would be a printer and paper, and a necessary cost would be a payment processing system. Understand the limits on hobby expenses and how to deduct them. Generally, you can only deduct hobby expenses up to the amount of the hobby income. If your hobby has more expenses than revenue, you will experience a loss, and that loss cannot be deducted from other income. Itemize your expenses into three types of deductions, following the rules for each type to deduct your hobby expenses. See Publication 535 for the rules about how to claim them on Schedule A, Itemized Deductions. Determine the extent of losses that have occurred from your side hustle. It is normal for losses to happen in a company's start-up phase. Sometimes, the losses are beyond your control due to fire or theft. However, it's also important to know if your losses have continued beyond the period, which would be necessary to bring your side hustle to a profitable status. This may create a red flag for the IRS. Make sure to Claim profits and losses. If you aren’t trying to make a profit with your side hustle, you can’t use a loss from it to offset your income. The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and only S corporations. If you did make income from your side hustle, even if you didn't intend to, you must report this income on Schedule 1 Form 1040, line 8. Now that you know the definitions of a hobby vs. a side hustle or freelance business from the IRS perspective take the time to evaluate your own freelance activities and any income from your side hustle so you can be prepared when you file your 2022 taxes in the coming months. If you are just starting out in your freelance business, check out our guide on tax considerations for freelance start-up businesses. via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/14/untitled-8/
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With 59 million freelancers in 2020 in the US and experts claiming that by 2027, the majority of the workforce in the US will be freelancers, we know freelancing is getting increasingly popular each year. Nowadays, independent workers have a plethora of helpful tools to increase productivity: planning apps, communication tools, paperwork and contracting managers, social media planners, etc. Thus, freelancers are recovering control over their time, schedules, and finances while making more money than ever. A functioning and well-designed website is essential in some industries, which can ring up an expensive bill. Website development options range from simple, inexpensive options, including easy-to-use website builders (i.e., Wix, Squarespace, WordPress, etc.), to sophisticated and complex solutions like Magento's progressive web app. Even with these tools, attracting high-paying clients online can still be challenging and pricey. Identify the purpose, necessary functionality, and value that having a website would add, then research the various options. Most importantly, you want to ensure that you are visible to prospective clients. When developing your freelance company into a full-time source of revenue, you may need to employ multiple resources and strategies. Let's dive into some tips on how to grow your freelance business and attract high-paying clients. Set Yourself on Some Freelance Job SitesFreelance platforms that aid freelancers in finding clients and projects can diminish your profit margins. However, these platforms are often worth exploring, as 91% of freelancers who have used freelance job platforms to find work would recommend them to others. Before signing up, ensure you research the various available freelance platforms and their different pricing structures. Keep in mind that other platforms have different exclusivity policies. When choosing a platform, beware of these policies as they can determine your client interactions-- you may not be able to keep collaborating with clients gleaned off the freelance platform. Look into options that serve freelancers with your skills or specialties, as platforms are available for specific industries and work. The most popular platforms are Upwork, Freelancer, FlexJobs, Fiverr, and Toptal, which provide opportunities in various fields. Create Social Media ProfilesDon't hesitate to post your projects online! Promoting your work is one of the best methods to attract potential customers, 70% of small businesses in the US have found a freelancer on LinkedIn. Use your social media accounts as a portfolio and employ hashtags, location tags, and informative material to raise awareness of your services. Be sure to consider less obvious options to engage, like Quora, Reddit, or Pinterest, and mention that you're open to freelancing work in your profile. For better results, pin the examples of your finest works, create a summary describing your accomplishments and expertise, include your certificates and proofs of education received, and include testimonials from previous customers. Invest in Social Media AdsLaunching an ad campaign doesn't require much. Contrastingly to other online advertisement options, social media advertising is a powerful and inexpensive way to promote your freelancing business. One of the key advantages of such promotion is that you can target a particular audience, specifying the age, gender, location, and interests. The system will show your ad only to those matching the given parameters. Use Email MarketingAccording to Campaign Monitor, 64% of small businesses use email marketing to reach customers. It can be equally effective for freelancers. Here are some actions you can take as a part of the email marketing campaign:
Take good care of the content. Always provide the reader with valuable and insightful information. That value will keep the reader interested and demonstrate to the customers that you are a professional that may be helpful to them. Ask Clients to Give ReviewsIt's crucial, as never before, to maintain your reputation and prove trustworthiness. Real people have always been the most reliable source of information. Therefore, you should make sure potential customers can easily find reviews on your work—request testimonials from former and present clients regarding their interactions with you.
Build a Customer Referral ProgramYour clients may know other people who can be interested in your services. Word-of-mouth advertising doesn't take much work to do. Send an email when the moment is appropriate, maybe when a project is finished or after you get good feedback. To encourage the clients to recommend your services, offer them incentives for each customer they bring. It can be a discount for their next inquiry, access to unique materials, or free extra services. Prove Your ExpertiseProve you're good at your field to win more clients. Therefore, attempt to present yourself as an expert in the area. You can speak at professional events. Giving a presentation at business conferences is a fantastic method to demonstrate your skills and network with new contacts. It's your chance to show unique skills that a business audience would find appealing. Start blogging. Since you are familiar with the hottest trends, subjects, and intriguing advances in your industry, why not share your expertise with others? Make sure to talk about issues you believe would benefit potential clients and provide information on how you can assist them. Publish Guest PostsAn excellent strategy to increase your audience is to publish articles in reputable journals and blogs relevant to your industry. First, you need to determine the right platform. Look for blogs that are relevant to your skills and have an established reader base. Directly pitch editors with topics you can write about and share some of your earlier writing. After getting a green light, look at recently released pieces to obtain a sense of the publication's style, tone of voice, and preferred content forms. Directly pitch editors with topics you can write about and share some of your earlier writing. Don't forget to repost the link to your social media after publication. You're killing two birds with guest posts: establish your authority in the field and directly link people to your website. By the way, this post is a guest one ?. Take Care of SEOYour target customers are actively seeking freelancers on the Internet. Making sure your website is optimized for search engines is one of the best methods to make yourself more visible. In essence, this means searching terms people use to find services you offer and utilizing those keywords on your website. Of course, SEO becomes a little more complicated than that, so if you can't fully understand it, turn to an SEO specialist. Final WordHiring a marketing expert or spending a fortune on advertisements and promotions to get new clients is unnecessary. The key is reaching out to as many people as possible and develop connections with people within the industry or who have shared interests. According to Upwork.com, 73% of freelancers say technology has made it easier to find work. Think about the channels you can use and actions you can take to demonstrate your successful cases and nurture trust towards you and your product or service. via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/10/how-to-get-more-clients-as-a-freelancer/
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Freelancers wear many hats — budgeting and tracking expenses is one of their countless roles. Financial planning is complicated as is, and as a freelancer, budgeting business and personal expenses can cause the lines to blur between the two. Sudden expenses appear for everyone, and things can get out of control fast, especially if you don't have a steady paycheck from payroll to rely on. Don’t worry — let's help you figure out your finances and regain control. In this article, you will read the budgeting tips that will help you save more money and become more financially independent. Let’s see what you can do. Set Your Expense LimitsInvesting in coaching, mentoring, and productivity tools can be critical to growing your business. However, it is easy to get carried away with spending on new tools or conferences and rationalize the expense as investing in business growth. Let's discuss how you can deal with it. Set your limits — think about how much you can spend on a specific category of activities or tools. Next time you are tempted to order new software or a book, ensure you haven’t exceeded your set limit. Perhaps, some books you order often pile for months on your shelf. So what’s the point of ordering new books if you haven’t read the ones you bought last month? If you spend your budget way too quickly, ask yourself: Do you prioritize your expenses well? Create a Savings AccountImagine you have already spent all the money this month and suddenly find out you have to pay a dentist's bill. So how can you stop worrying about another money emergency? Unexpected expenses can be unavoidable and complicate life, nonetheless, you can be prepared. Whether you earn $10000 or $50000, you should set some money aside every month. Having some savings helps instill a feeling of security and helps you become prepared for unexpected expenses in the future. How much should you save? Make sure you accumulate the money necessary to cover three months of your basic expenses (such as mortgage, electricity, water bills, life insurance, etc.) Save the amount you are comfortable setting aside — 10% of your monthly income can be a good starting point. Sleep on It Before Making a Big ExpenseShopping online is easy nowadays, especially if you save your credit card details on your favorite store accounts. The ease of spending money online often leads to overspending. But do you really need the things you buy, or do they pile up on your shelves? The ease of spending money online often leads to overspending. We don’t need a lot of things to live a happy life — embrace minimalism. But it’s not easy to break the habit of spending money online way too often. Good news —there is one simple trick to deal with compulsive shopping effectively. Before you buy another pair of jeans or food processor, leave it in your shopping cart for a few days. When some time has passed, think if you still find the purchase necessary for business or personal purposes. If your answer is “no” or “maybe”, leave it — more money will stay in your bank account. Learn How to Spend LessIn a world dominated by consumer culture, it’s easy to fall into the trap of buying new things all the time. People buy a bigger or more beautiful house, a new phone model every year, or designer clothes. However, doing so means you stretch your budget and constantly earn more money to satisfy your growing needs. Increasing your debt will most likely hurt your feeling of security and your future financial choices. Even worse — spending too much can later lead to taking loans and mortgages. What should you do? Learning to spend less money is a sure-proof way to prevent financial collapse. You have much more flexibility when you feel comfortable living on a small budget. For example, imagine you have a client you don’t like working with — he is always rude and demanding. If you don’t need that $500 extra, you can quickly put his project on hold and stop reading his emails abundant in exclamation or question marks. You can also pass on some other projects if they don’t contribute to your professional growth. Finally, you can start working only on the projects you like that develop you. Let’s face it — cutting your expenses and keeping only the most essential ones is difficult. You have to do it in small steps — going for it all at once can be discouraging. Also, remember that living on a shoestring budget is a habit to be developed, not an overnight success. Track Your SpendingYou can’t balance your budget better if you don’t know where your money goes every month. Tracking expenses can help you regain control over your income. Try to write down all expenses you have or collect receipts and put them down as expenses by the end of the month. No matter what option you choose, by the end of the month, you will end up with a summary of your expenses. Later, you can segment it into smaller categories such as utility bills, mortgages, insurance, or entertainment. You can also find some free expense-tracking tool that makes the whole process easier. Next — analyze where you spend the most. Ask yourself the question — should your expenses stay as they are? Because you might be spending too much in some areas and would benefit from cutting the budget for that particular category. For example, you can eat out way too often during the week, which is your most significant expense. Solution? Perhaps, you could prepare food at home from time to time to free up more money for more meaningful categories. The 50/30/20 Budgeting RuleThe 50/30/20 rule can help establish the right balance between essential and less essential expenses. So what is it all about? According to the rule, 50% of your budget should go to baseline expenses, 30% — to entertainment, and 20% — savings (or pension fund). Your baseline expenses are the most necessary expenses that meet your basic needs. Baseline expenses can be your mortgage, water, and electricity bills. The second group — 30% expenses — are not so crucial for your existence and can be cut. They can be your Hulu subscription, gym membership, training program, foreign language course, or cinema tickets. Your savings category is the money you set aside for retirement or some emergency fund. Keep the Personal and Business SeparateFreelancers often mix the two accounts — personal and business. Accountants like to emphasize that personal expenses don’t qualify as business expenses that can reduce your tax. Keeping personal and business accounts separate can help keep your business receipts more organized — a helpful thing to do in case of some discal controls. The easiest way to become consistent with keeping personal and business accounts separate is to pay yourself a salary every month. Make it a habit to transfer a specific amount of money to your account from your business account. Just choose the day of the month and set up a recurring reminder — this way, you ensure this task won’t go through the cracks. Save Money for TaxesNothing is certain except death and taxes. While everyone knows the former, freelancers often forget to account for the latter. Finding out you have some tax to pay, but no money on your business account can be frustrating. In the worst-case scenario, passing the deadline can lead to a hefty fine. So what should you do to be safe with taxes? Consider setting aside around 30% of everything you earn, so you can safely pay your taxes when the tax time comes. Paying taxes on time also depends if your clients paying you on time. Introduce account receivable management for easier billing, invoicing, and communication with clients — this way, you can collect money easier. Wrapping upEffective budgeting is all about establishing proper habits. You won’t change much with mere determination. Instead, you have to become consistent in your approach to finances. As you know, establishing habits takes time. It’s better to start working on them earlier than later. So what are you waiting for? Get started! via Freelancers Union Blog https://blog.freelancersunion.org/2022/11/09/budgeting-hacks-freelancers-should-live-by/ |
AuthorI have 5+ years experience working as a medical transcriptionist. When I am not working, I enjoy sports like playing basketball or judo. I love making friends and connections. Archives
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