Finances are one of the toughest things about being a freelancer. As I mentioned in "Handling Uncertainty", you don't always know where your next job is coming from in the beginning, which means you're not sure where your next paycheck is coming from either. Further, it may not be a paycheck at all. Employees pay in all sorts of different, sometimes confusing ways these days. If you're just starting out as a freelancer, you may have to do some work for free. It's an unfortunate fact of the business, but doing work for free does build up your portfolio, particularly if the work is for a big name company, or a fledgling one that has success in its future.

A freelancer's lifestyle varies based on what he or she is ultimately going for. If you wish to someday be recognized for your particular skill, you will have to pursue unpaid opportunities. If you're more interested in the paycheck, stick to the paying jobs and you will eventually move up the ranks.

Sometimes you won't get paid (ask any freelancer about the times a check just "didn't show up") and sometimes you will get paid very little. First of all, keep track of your personal earnings, but don't go overboard trying to hunt employers down for your pay. You can also always negotiate offered prices. You should also establish a rate for yourself. If an editor asks how much you charge for a feature article, overshoot it a bit, as they can always offer you a compromise. It's now common for more experienced writers to be paid $1 per word. You can check out how much you should be charging by checking around the Internet. For instance, this graphic design website recommends various methods for pricing your work.

Here is another article from "Mens With Pens," that discusses how you should price your work. It also links to other articles with even more information.

This infographic is provided by Freelancer At a Glance and offers some insights into what you should be getting paid:

Once you've got a steady rhythm going with your gigs, make sure you record ALL your income, even if it's just a $30 paycheck. This will save you a lot of trouble later, and help when tax time rolls around! Consider using a Google Doc or similar software so the numbers don't get lost or mixed up.

*You can also add clickable ads to your site from which you can make, generally small amounts, of money. It has the potential to cheapen your site, but there are many ways to go about it and it can actually add to the professionalism of your site under some circumstances. Generally your site has to generate enough regular views for the ad sites to consider you.

GOT QUESTIONS ABOUT TAXES?

So does everyone. Check out The Ultimate Tax Guide for Freelancers from the Freelancers Union Site!