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Vent: Talked to a friend who's been freelance for 10 years and his advice on savings scared me straight
We were grabbing a beer last week and he asked how much I had saved for a slow month. I said maybe a grand, thinking that was okay. He just shook his head and said, 'Man, you need six months of bills, minimum. I had a project fall through in 2020 and that fund saved my business.' It hit different because he's not a worrier, he's super practical. I crunched my numbers and my rent, software, and health insurance alone are $2,800 a month. That means I need over $16,000 just sitting there, which feels impossible. How do you even start building that up without going crazy?
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gonzalez.vera7mo ago
Okay but is that six month rule actually realistic for everyone? I know a few freelancers who just keep a tight budget and line up the next gig before the last one ends. That huge cash cushion sounds nice but feels like overkill if you're good at managing your pipeline.
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susanp507mo ago
Yeah but @gonzalez.vera, that pipeline can dry up fast.
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jason736mo ago
My cousin's freelance design work vanished overnight last year.
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