INCOME PLANNING
Freelance Income Planning Guide
Freelance income can vary from month to month. A simple yearly plan can help you understand how much client work you need to support your goals.
Estimate yearly client revenue
Multiply your expected billable workload by your average rate. If you use project pricing, estimate an average monthly or yearly project total instead.
Subtract business expenses
Revenue is not the same as personal income. Include recurring and occasional business costs in your plan.
Plan for taxes
Tax rules vary, but setting aside an estimated percentage can make your take-home projection more realistic.
Account for inconsistent months
Some months may be busy while others are slower. Yearly planning helps avoid assuming that every month will generate identical revenue.
Create a minimum income target
Knowing the minimum revenue your business needs each month can help you decide whether your current workload and prices are sustainable.