How to handle fluctuating pay

While freelancing has many benefits, one thing that some miss by not being employed on a full-time basis is the regular pay wage at the end of each month. As a consequence, sometimes money comes in thick and fast, whereas at other times it's slim pickings. This is a quirk of the lifestyle that whether you love it or hate it, you have to get used to. Here are some of our tips for how you can make the most of the fertile seasons and not go without in the dry ones. 

Pay your bills 

Each month, get the most important things out of the way first. Be really strict about this and don't let yourself become lazy or lax. If you leave bills unpaid, it's only going to escalate and cause you added worry, which is definitely unadvisable. Get into a habit of paying bills as soon as the money comes in from the client, even if it's before the date it's due. This way, your responsibilities are fulfilled and can be crossed off the list - and not hindered by any impulsive spending. 

While on the topic of bills, when you have a spare moment it's worth going through your monthly outgoings and seeing where you can cut down. If it's spending a few hours shopping around for a cheaper deal, it might be worth it in the long run. Even if you can't find anything for better value, the peace of mind that you're paying as little as possible is helpful when you're going through a financially-tougher patch. 

Look back to plan ahead

For those of you who are seasoned freelancers or contractors, you'll know all about ebbing and flowing. Look back at the last year and see whether there are any trends or not. Are certain months generally more lucrative? Is there a time when you normally go on holiday and consequently the workload - and therefore your income - is less? 

In the higher-earning months, be stricter with your excess income. If possible, put ten per cent of your incomings into an emergency savings account for when your payslips don't cover necessities. Resist the temptation to blow a big cheque on an impulsive shopping spree, when you know the next month will be more difficult. 

Spend time finding more clients

If you find you're being hit quite hard by the fluctuating pay and workload, make sure you're dedicating time in your week to find more clients. Don't wait to connect with potential new sources of income until you actually need the funds. Be proactive and utilise social media and other sources of marketing to promote yourself. This means your workload can be steady and frequent - and your income as well. 

Keep some perspective

When you go through periods where you're stressed and working longer hours than you'd ideally like, remember to keep some perspective. If you made the jump to work for yourself having been employed, remind yourself of those reasons. Write a list of the positive benefits of being freelance and keep it on your desk so you see it frequently. Lifting your spirits like this can help you combat the harder times until the money starts flowing again. 

Watch your personal spending

For one week, tell yourself that you're not going to spend any money apart from the absolute essentials. Be strict with yourself and remember it's only seven days. At the end of the week, see how much you saved and work out what you could actually do without. This strategy could prove to be very helpful if you ever need to have a frugal period in the future and can help you cut down your day-to-day spending. 

However, don't be too harsh. Treat yourself from time to time and don't feel guilty about it. You work hard and that breeds rewards - they're yours! If you ration how often you splurge, it'll make it even more special.