Seven good financial habits

There are two freelancers, who have the same income. Yet freelancer A is doing much better financially than freelancer B. Freelancer A has less debt, saves more, has more money left at the end of the month to spend.

How is this possible?

Before we started Flow, we worked as freelancers ourselves. And we also worked with dozens of other successful (digital) freelancers.

And here's what we see that differentiates financially successful freelancers from financially “mediocre” freelancers (regardless of their background):

1. They divide their income among several “jars”.

They have a budgeted saving jar for everything. This eliminates unwanted financial surprises. Limiting the amount of money you are free to spend helps put extra money aside for later.  They limit their monthly recurring expenses to what is absolutely necessary. They keep track of monthly subscriptions and terminate subscriptions when they don't use it or don't need it.

2. Their spending pattern stays the same with an increase in income.

They ensure that the extra money goes towards their long-term goals, such as saving, investing, and retirement. They choose to stay within their means. Not only that, but they review their spending to see what is unnecessary and adjust their budget when possible.

3. They avoid debt as much as possible.

Financial success is a lot easier without debt eating up a portion of your monthly budget. While it's not always possible to avoid every form of debt, having as little debt as possible is a priority for successful freelancers. They save fanatically to eliminate debt as quickly as possible, if they have it. They keep track of their debts and ensure that the most expensive debts are paid off first.

4. They have sufficient knowledge about finances.

They continue to learn and follow the latest trends. Furthermore, they know what is important, what helps to be financially stable and make steps towards this goal. This way they make the right decisions to manage their money.

5. They have a budget for fun expenses.

They spend this money without feeling guilty. This is the budget for exactly that. They know what they want to spend their money on, and the things they prefer not to spend money on. And they strictly adhere to this. They avoid high impulse purchases, and they don't compare themselves to other people. They don't waste money to keeping track of what other people are buying. They are frugal, but not cheap. Not only that, but they know that the real difference is made by a higher income (and not by cutting back on a Starbucks coffee).

Save up for fun expenses

6. They focus on the long term.

Quick wins are not required. They work patiently toward their long-term goals while also dealing with everyday money matters. Deciding early to invest in such things as a good pension gives you security for a strong financial situation later in life.

7. Setting money aside is a priority.

Every time their salary comes in, they make sure an amount goes straight into the savings account. A little less money to spend each month, you hardly feel. But it makes a big difference to your savings account eventually. Saving is a simple calculation. If you regularly set money aside now, you will have a larger buffer later, and you will be financially healthier.

Do you want to start taking control over your money? With our Flow app we help you to live up to all these goals, and make them clear. So, you too can be financially healthy.