Stinking rich or one step away from bankruptcy?
How I feel about my finances changes by the minute.
A couple of weeks ago I bought a fan with superpowers for my bedroom. Equipped with a remote control and a timer, it is quiet as a mouse. No matter what I try, I often struggle to fall asleep several nights on end during the warmest time of the year. It’s why this purchase should have been a no-brainer. The fan and I became BFFs from the first day I brought it into my home. Yet that best friend stayed in my shopping basket for weeks before I finally decided to proceed to checkout. It took several friends prodding me (thank you Linda!) that my health is a valid reason to pull out my wallet.
Now that my sleeping problems seem to have become a thing of the past, I could just about hit myself in the head: why did I wait so long to buy the fan?
The answer, of course, is that my spending habits are shaped by things like my upbringing and habits, but the fact that I’m a freelancer also plays a big part, I’ve come to realise.
It’s not always easy to explain to salaried friends why I love to join them for restaurant dinners on some occasions, while I try with all my might to change dinner plans into coffee dates other times. I’m a little ashamed of my capricious ways to be honest, meaning I’m more likely to plan outings or holidays with fellow freelancers. Because we don’t have to explain to each other why our spending patterns are as fickle as the weather.
I think the spending habits of self-employed workers are determined by two important factors, factors that salaried people don’t have to worry about. As Linda has previously pointed out, the tax deductibility rules for the self-employed stimulate certain purchases (and discourage others). Concerned friends encouraged me to buy my superpower fan, but the final push came from the realisation that I wouldn’t only use the fan to sleep; I would also use it cool my home office during the day. Making the fan a legitimate business expense. It may seem strange, but the truth is that our expense rules cause me to ponder basic-needs purchases like food and clothes longer than I do books and office supplies I don’t really need.
(Me at a bookstore)
And then there’s of course the fluctuating income. Sometimes I wait for invoices to be paid for months on end; sometimes they’re all settled the same day and I feel like I’ve won the jackpot. On those days I feel so stinking rich that I splurge at the nearest bookstore without a trace of guilt because hey! business expense.
Because I don’t make a fixed sum of money every month, long-term commitments tend to especially scare me off subscriptions that aren’t easy to get out of, new hobbies or pets that I suddenly won’t have the time or money to take care of, or my absolute worst nightmare – a mortgage.
Thankfully, the longer I freelance, the more my feelings and spending patterns are becoming more stable. Over the past few years, I’ve built up buffers for different kinds of emergencies. I also have several regular clients, which makes it easier to make longer-term plans.
At the same time, an assignment falling through can still make me feel like I’m one step away from bankruptcy, and I probably will never be able to explain why, not even to myself.
How does being a freelancer influence your spending habits? And how do you communicate this to your salaried friends and family? Let us know at freelancerthefriendly@gmail.com
Speak soon,
Selma