How To Manage Your Money Like The 1% (Freelance)

How To Manage Your Money Like The 1% (Freelance)

– What’s up, everyone? Welcome to Josh Burns Tech. So, when you start making
a lot of money freelancing, and that’s a goal for all of us, right? Make a lot of money and
completely change our lives. When you start making that type of money, it’s immensely important
to know how to manage it. And, I’m gonna share
with you some of the ways that I learned how to manage my money, all the failures that I went through. My goal is to help you
not make the same mistakes that I made. So, everything I’m gonna
share with you in this video, I learned the hard way. I’ll learned it myself. I didn’t have someone tell me what I should be doing my money, so I wasn’t putting myself in a situation where I didn’t know what I could spend, what I couldn’t spend, what
I should leave leftover. I didn’t have someone
helping me in those areas, so that’s my goal to help you with those. So, my top recommendations on how to manage your freelance money like the top 1% of freelancers and that should be the goal
for each and every one of you, to be in the top 1%. My top recommendations from my
failures are coming right up. (upbeat music) So, I am not a financial advisor. These are processes that
worked very well for me. I’ve learned from a lot of
mistakes, too many to count. I’ve learned from all these mistakes. I’m gonna share these processes with you but I am not a financial advisor so I wanna get that out there. And, if you enjoy my freelance content, if it helps you and you get value from it, do the channel a huge favor
and hit that Like button. It helps out so much with
the YouTube algorithm and consider subscribing
to the channel as well, joining our freelance community and making sure that you don’t miss out on all my future videos. Let’s talk about how you manage and track your freelance income. When I first started freelancing, the only way that I ever
checked these things was either logging into or, which I used to freelance on, logging into those sites
and looking at my earnings within the sites. The problem with that
is that the sites are really limited as far
as the user interface that you get from looking at your income. I personally use QuickBooks Self-employed. I’ve done a full video on
QuickBooks Self-employed before. I’m gonna link it at
the top of this video. Check that card out if you
wanna look at that video. I did a full video on
QuickBooks Self-employed. That’s what I use personally
to manage my freelance money. You can track expenses,
look at your taxes, and it shows month-by-month
income as well, so you can compare on
a month-by-month basis how much money that you
are making freelancing. It’ll show your income,
subtracting your expenses, giving you that total amount
on a month-by-month basis. You can compare each month to each other. Make sure that you’re hitting whatever your income goals are. I have QuickBooks Self-employed linked to my bank account as well so that when certain things come through, they’re automatically flagged as expenses. I don’t have to manually
do that every single time. It automatically flags
them and throws them into my business expenses. The same exact thing
applies for income as well. When I get paid from, QuickBooks Self-employed
sees that payment, automatically throws it into my income. And then, if you have your
own freelance clients as well, so you have your own
clients that you obtained off of any type of freelance platform. If you have those clients, you can also invoice directly
from QuickBooks Self-employed. There’s an invoicing option. You can setup your
invoice, all the details, set up your customer, and then you can send that invoice to them and you’re also able
to give them the option to pay by debit or credit card, or by their bank account as well. And, that’s a really great feature. Now, I’m not pushing QuickBooks
Self-employed on you. There’s plenty of alternatives out there. It’s specifically the one
that I personally use. It works very well for me. It’s also fairly cheap,
as well, per month. So, just check a few out. Try them out. See which one works best for you. I started freelancing in 2016. I had about six or seven months that year that I did freelance
work and got paid for it. So, when tax season rolled
around the following year, I had not paid taxes on any
of my freelance money, yet. I had been making sure I kept a decent amount
of money retained inside of my bank account to pay my taxes, but I had not paid any
estimated taxes at all. Now the issue with that is
that I had made over $20,000 that I didn’t pay fourth quarter taxes on which I should have. So, when I gave my accountant
all of my tax information, and if you don’t have an accountant and you’re just starting to freelance, definitely get one. You’re gonna need one. They’re gonna make sure that
you get all the tax breaks that you should get being self-employed. So, anyway, when my accountant
had all my tax information, they went through the
process of filing my taxes, I ended up having to pay a small penalty because I owed the IRS a
certain amount of money that I hadn’t paid any taxes on yet. Again, I’m not a financial advisor. Make sure you get an accountant, go through all the tax
information with them. But the process that
works very well for me is that I have my own bank account, a completely separate bank account from my other bank accounts that’s just dedicated to my taxes. So, every time that I
get paid through Upwork, or maybe it’s a personal
client that I have. Anytime that I get paid
for freelance work, I take a certain percentage of that, that I’ll talk to my accountant about. We talked about the percentage, made sure that I got that right. I take that certain percentage and put it into that
bank account by itself. I don’t touch it, and then, when quarterly estimated
taxes roll around, I figure out what I owe and I take it out of that bank account. It’s completely separate
from my main bank accounts so that I’m able to use that
money in my main bank accounts and not worry if some
of that is tax money. Now, again, there may be a
better process out there. This is one that I personally use, myself. There might be better processes. If you know some, throw them down the
comments section below. But again, I’m not a financial advisor. These are just things that
worked very well for me. So, I recommend that you
at least check into it. Think about ways that you
can separate your tax money so you don’t have to worry about it and you always have it set aside. You also need to be prepared at all times to lose your largest client. If something goes wrong, or if your client just simply decides to
go another direction and you’re not in their budget anymore, you cannot let that hurt you. So, how do you prevent
losing your largest client from really hurting you? You make sure that you set a
certain amount of money aside. That means saving. You need to be able to
give yourself enough time that you can find the new largest client. And trust me, there’s so
many of them out there. I’ve worked with so many
really large clients on Upwork. If you don’t believe me, just go to my profile,
scroll through my history. You’ll see some very high paying jobs. So, you need to make sure that you have the money set aside that if you lost a really large client, and it really took away
from your overall income, that you have time to start
going through other jobs and finding a new one. Always be prepared for the worst. You never know what life
is gonna throw at you. So, you need to make sure
that you’re preparing yourself for whatever that may be financially. Trust me, you’re gonna feel so much better knowing you have a certain
amount of money set aside, an emergency fund, that you can access to handle whatever life throws at you. Any time that I’ve lost
a large client on Upwork, and it’s always due to them
just not having the budget at the moment, but they always come back
and ask me for future work down the road. But, you need to make
sure that you’re able to lose someone like that
and not let it destroy you. Don’t just start balling out
as soon as you start making a lot of money freelancing. Try your best to not do that. I have a Tesla Model X, it’s
been in some of my videos. However, I didn’t even purchase that until I knew I had a certain percentage that I could put down on
it for a down payment. It’s really hard because
there’s so much money that you can make freelancing. It’s really hard when that
starts coming your way to not just start spending it
on things that you want. And, of course, it’s
okay to spend the money that you work so hard for. But, make sure you take
a certain amount of that, set it aside into a
different bank account, so that you can handle
other things in your life that come your way. And I also highly suggest
that you take a certain amount of money that you make freelancing and invest it back into
yourself and your business. If you think you don’t have
a business, you’re wrong. If you’re freelancing,
you have a business. You’re self-employed
and you have a business. All you have to do to get started is come up with a business name, file an LLC, if you want to, and think about other ways that you can promote your business. For instance, I have a business
name, Josh Burns Tech LLC. I have a website, my
social media accounts, and YouTube that I put a ton of work into. When I first started on YouTube, I was getting hardly any views at all. Most of my videos didn’t get any of views. I had less than a hundred subscribers and without getting many
views or traction at all, I was still putting in
extreme amounts of time, a lot of money into editing, and other ways to promote
my YouTube channel. If you wanna make a
lot of money long term, then you’re gonna have
to take some of the money that you’re making now and invest it back into your business. It’s the only way to grow. If you wanna be a top,
an elite freelancer, working your way towards that 1%, you’ve gonna put in the work for it. And, once you put in that work,
and you get to that point, you’re gonna be making so much money. And, that’s why being able to manage it
effectively is very important. Freelancing is a lucrative
financial opportunity that can drastically change
your life, and it did for me. It can lead to other
business opportunities and support those opportunities
financially as well. I’m currently a part of
Upwork’s marketing campaign. I’ve been featured on their website. I’ve been featured on their
social media accounts, I’ve been featured in their blog post. I didn’t do anything other
than work extremely hard to earn that opportunity. I worked so hard on Upwork for 2 years, putting in tons of time, tons of effort. I worked my way into being
one of the top freelancers, one of the top earning freelancers, and one day, Upwork contacted me. I’ve been asked a lot how
I got those opportunities and that’s the answer. I worked really, really hard and the opportunity came to me. So, when you start making
a lot of money freelancing and you become one of
the very top freelancers, and I know that each of you
are definitely capable of that. When you reach that level,
make sure that you’re doing the right things to manage that money. I learned the hard way. I didn’t manage it. I had so many failures and that’s why I’m sharing
those with you to help you not make the same mistakes that I did. Giving you exactly what works for me. What I’ve learned over the
last three years freelancing, I wanna share that with
you and help you not make the same mistakes that I
did so you can grow faster. So, sacrifice today for a better tomorrow so that you can live like most never do. On this end screen, I recommend
checking out these videos and be sure to hit that
round subscribe button for weekly tag videos. And, hit that notification bell so you don’t miss anything. Thank you for watching,
and then, till next time. ♪ Yeah, jungle and the juice man ♪ ♪ I can feel their hate yeah ♪ ♪ I can feel their hate man ♪ ♪ I can feel their hate ♪

7 thoughts on “How To Manage Your Money Like The 1% (Freelance)

  1. Sweet vid bro, you got a new sub. I also make tutorials on how to make $$$, please take a look on my channel :)) Thanks!

  2. Want to Become a 💰Top Rated and High Earning Freelancer💰? Checkout my Playlist!

  3. I'm making the transition into fulltime freelancing and your videos are priceless , rn I'm working on converting proposals on upwork to actually clients, most of my clients have been through word of mouth and local businesses. I know there is a huge market for freelance developers but I suck at talking to people online.

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