Tidying up your finances as a freelancer is hard, but maybe having them too tidy is a bad sign. One long-time freelancer suggests that having nicely balanced books means it might be time to increase your rates.
Image via kevinspencer.
Balanced books are just one of a few indicators Thursday Bram gives for freelancers to consider about their billing rate. Customers who never complain, and rates that have been in place for a year or more, are more obvious indicators, but your comfort level is a more subtle warning sign:
Your budget is perfectly balanced: A perfectly balanced budget isn’t a good thing, at least for a freelancer. If just one missed payment from a client would throw your budget off entirely, you’re not bringing in enough money. A perfectly balanced budget (even if you’ve budgeted for savings and retirement) means that you still have room to stretch.
How have you set your rates for freelance work in the past? Is there a standard formula or case-by-case charge?
How To Tell When Your Rates Are Too Low [FreelanceSwitch]