From the course: Freelancing Tips

Unlock this course with a free trial

Join today to access over 22,600 courses taught by industry experts.

Managing your cash flow

Managing your cash flow

From the course: Freelancing Tips

Start my 1-month free trial Buy for my team

Managing your cash flow

“

- You've probably heard someone say that cash is king. Obviously making money sounds great, but there's a deeper meaning to that phrase. You want to be able to pay your bills on time without going into debt. Cash flow is a pretty straightforward concept. At any given time you have income flowing into your business and expenses flowing out. So let's talk about the cash coming in. Your budget will tell you how much money you need after taxes to cover all of your expenses next month. So you'll need to think about those taxes, your expenses, and how much you like to save. This gets a little complicated so bear with me. Let's say you need 3,000 dollars to cover your expenses each month and you'd like to save 2,000 dollars. That means you'll need to make 5,000 dollars each month after taxes to meet your financial goals. In the United States self employment tax is 30% of your net income. So you take the total amount you need to make after taxes which in this case is 5,000 dollars, divide…

Contents