"I don’t have enough money.”
“The clients I am getting are not paying what I am worth.”
“I am deep in debt.”
Are these some thoughts you constantly get as a consultant? Do you want to better learn how to manage your finances? One thing being a consultancy will teach you is the importance of managing your finances. Whether you are a beginner or a novice at consultancy – it’s a continuous learning process. One day you get a huge deal and then it takes months before you even get another client. The income received is not always consistent. It also varies from one client to another. How do you prepare yourself for the months when nothing is coming in? How do you ensure you set yourself to win financially whether you have a client or not?
Have a financial plan/goal
This is not technical as you may think. It is very important to set a financial goal similar to how you set your consultancy goals. What is your financial target? Where do you see yourself in the future financially and how do you want the money to work for you and not the other way around? This will even entail which clients you want to work with and how much you are going to be charging to reach a specific goal. Be intentional when setting your financial goals. Always look at what you want, and believe in and not what others have achieved. What would you do if you did not worry about other people’s opinions and approval?
Set up an emergency fund
When COVID-19 happened, people lost their jobs. The consultancy world/gig economy was also affected as companies were more focused on staying afloat in the midst of a global pandemic and adapting to the situation. If one was used to consistent clients, without notice one could find themselves without a client for months on end. Setting up an emergency fund involves saving money that can sustain you for at least six months when you do not have a stream of income flowing. This will give you more time to look for clients and prevent you from financial stress.
Budgeting is important
It’s great to have money to spend as you wish and not have to account for it. Knowing that you have the freedom to do whatever you want with your finances is incredible – but what happens when you don’t have any funds saved up or invested when the clients don’t come knocking? Budgeting means planning how you are going to spend and invest your money and knowing where your money goes. You can spend so much money and in the end wonder where all the money you have spent has gone to. Budgeting doesn’t mean limiting yourself from spending on the things you like but planning where the money will go even if it is towards lifestyle.
Learn about personal finance
Learning about money is not taboo. It is a life skill. There are numerous books, YouTube videos, documentaries and even online classes on personal finance. If you can get a financial coach the better. There is no excuse to not learn about your finances and how to manage them. With the many resources within your reach, you will be well on your way to building a better relationship with your finances. You can learn anything from developing a positive money mindset, budgeting, investing, saving, emergency funds, and debts, to even how to achieve financial freedom.
*The information shared has been written in general terms. For information on personal financial management, you should consult a qualified financial professional.