Welcome to my fourth freelance income report – for the month of December, 2014.
Spoiler alert: After some hardcore hustle, I was able to just barely eek out another month that was higher than the last.
I’m keeping a profit-and-loss statement 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’s looked like since I started:
- April-June: $0 income – $205 expenses = -$205 profit (-$205 rolling profit)
- July: $805 income – $191 expenses = $614 profit ($409 rolling profit)
- August: $1,540 income – $264 expenses = $1,276 profit ($1,685 rolling profit)
- September: Income $2,280 – $555 expenses = $1,725 profit ($3,410 rolling profit)
- October: Income $3, 480 – $595 expenses = $2,885 profit ($6,295 rolling profit)
- November: Income $4,155 – $1,066 expenses = $3,149 profit (9,444 rolling profit)
I 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: $4,252, a 2% increase month-over-month.
Expenses: $966, which is higher than I anticipated, but worth it.
Net Income: $3,286 (after expenses, but before tithe/tax). This is a 4% increase month over month!
Virtual Assisting Work: 42%
Course Sales: 16%
I had a large amount of expenses again this month. The majority were for getting my email course up and running and I also enrolled in the Elite Blogging Academy, which so far has been worth its $299 price tag.
I’m still paying for my job board membership, my accounting program and Grayson to monitor my website and keep it up and running (fyi, these are affiliate links). I also snapped up the offer to join the Writer’s Den community, which is $25 per month. It has job listings and free courses for members, so I’m excited to dig in and start learning!
Of course there are still those pesky fees when getting paid, but I’m continuing to try to figure out ways to get them down. Last month they amount to ~$110, which is over 10% of my total expenses. I certainly could find another way to spend $100, couldn’t you?
Thoughts on the Month
December was a decent month. Being able to beat last month’s results (if even by a smidgen) was huge! I had a decent launch for my email course and I was able to back fill with some new client work. All of these things help.
I was glad that I was able to maintain during my busiest month of the year (personally/professionally). Of course there was Christmas and then I wrapped up work at my day job. Our family also got held up by a massive head cold (all in succession, yay us!)
Goals for 2015
Now that I’m a full-time freelancer and writer, I plan to hit the ground running in 2015. I recently posted my goals for 2015, but the basics are that I would like to payoff our second mortgage, make our RV dreams a reality and replace my previous day job income and/or hit the $10k/m mark by the end of the year as a stretch goal.
Although I think they are challenging, they are potentially doable as well. I want to be able to accomplish these without working 100 hours per week either, which means that I’ll need to learn and implement many efficient work practices. I’ll let you know when I find something especially helpful!
Of course my biggest concern is that my business doesn’t continue to grow. I’m very motivated and excited at the moment, but I’m not naive enough to think this journey won’t come with its fair share of challenges.
I’m sure I’ll lose clients, have more expenses than I anticipate or any other host of issues. Perseverance and continuing to do the income generating activities are paramount. After all, it’s not about how many times you fall down, but rather how many times you get back up.
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!
Photo Credit: Unhindered by Talent