I admire when others post monthly income reports.
I thought it would be interesting if I did the same. I learn best when those further along the path than I generously share the dirty details (i.e. financials) behind their business – and thought you might too!
Table of Contents
I started my freelance writing journey in April of this year. The first five months of my journey were showcased on one of my favorite blogs, Leaving Work Behind recently. I’ll give you a moment to catch up on it for context.
Are you back?
I’ve been working hard at diversifying my freelance business from the beginning. Most of my freelance income is from writing, but even that is split up into a few different buckets. I write for a few different blogs, have done copy writing, a website rewrite and more.
I also do some virtual assisting work and have written in detail about how I approached my first client. Luckily he said yes and I’m happy to say things are going well and we’re partnering on even more projects going forward.
The First Few Months
I’m keeping a profit-and-loss statement both for each month, as well as a rolling total. I enter in income as it is received (rather than as it is billed) and do the same for expenses. Here’s what it looked like for the first few months:
- April-June: $0 income – $205 expenses = -$205 profit
- July: $805 income – $191 expenses = $614 profit ($409 rolling profit)
- August: $1,540 income – $264 expenses = $1,276 profit ($1,685 rolling profit)
In order to be a savvy businessperson, I also take 20% of my net monthly profit and transfer that into a savings account for taxes. Next year when I do this full-time, I’ll set up and pay quarterlies. For now, I just set it aside so I have it when the time comes.
I also believe in tithing. I tithe to our church on my normal (day job) income and have chosen to support a missionary family in Costa Rica with my freelance income. This can’t/won’t always be the case, but it’s a fun reason to try to make more money!
Income: $2,280, which is a 48% increase month-over-month!
Expenses: $555, which is also a large increase;-)
Net Income: $1,725 (after expenses, but before tithe/tax). This is a 35% increase month over month.
Virtual Assisting Work: 26%
I had a large amount of expenses this month. The majority were for technology purchases. I bought a Chromebook (which I LOVE!) for $300 and a Karma hotspot (referral link) for ~$120 (with data).
The rest were from my job board membership, payment fees (these stink and I try and keep them as low as possible, but they exist!), my accounting program (referral link) and some other miscellaneous small expenses.
I don’t anticipate them to be this much going forward, although I am starting to pay for coaching/mentorship/whatever you want to call it starting in October. I’m sure it’ll be worth every penny! Going forward I anticipate my expenses to be around $250 per month.
Thoughts on the Month
I’m very happy with how things are going. I knew that this would be a process of growth and that’s exactly what’s happening. I’m probably not going to be able to keep increasing my income every month going forward, but I’m glad that my efforts are paying off.
I landed a great new client this month and my work with them is supposed to ramp up over the next few months, which should result in an increase in writing income. #winning!
I also started virtual assisting, which will be a great complement to my writing. It will also take off some of the creative pressure! I’m looking forward to this being a larger part of my income stream going forward.
Goals for the Rest of 2014
My goals for the rest of the year are to continue to increase my income and get it as close to replacing my current salary as I can. I’m currently a ways from that, but the future is looking optimistic.
Hustling is paying off and I’m encouraged by my results. I’m looking forward to finishing the year strong and putting myself in a position to confidently take on 2015 as a full-time solopreneur. The closer I can get to replacing my income, the better!
I have two main concerns for the next few months.
1) That I am too busy. We’re in the midst of completing a large home project, which means Wade is tied up and I’m doing more of the childcare/household chores (in addition to working FT and building my freelance biz). So far, we’re making it work and I’m hoping the light at the end of the tunnel continues to get brighter!
2) That I lose one of my two big clients. This is always a possibility of course! It’s also something that I can only sort of control. I can control my work ethic, effort, quality, etc.
I can’t control all of it though – like if their situation changes or we’re not compatible any longer. I won’t spend a lot of time or effort worrying about it, but it is good to be aware that things can/may change and have a contingency plan if they do!
Keep Your Head Down
If you’re currently hustling to build a business, we’re in this together. I’d love to support you, if you’re willing to do the same. Leave a comment letting me know we’re in the trenches together or a place that I can go to support you. Fan my FB page, follow me on Twitter or Google+ to stay in touch! We’ve got this!
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Photo Credit: Unhindered by Talent