Do Freelancers Retire? 6 Tips to Help You Get to Retirement

December 20, 2010


When you’re working for yourself, you’re always worried about your cash flow. Cash to pay staff and contractors, your families’ needs, and when taxes are due. But what’s going to happen when you’re sixty-five? Are you going to have to keep working to cover the bills? It’s best to start saving right now so you can enjoy those later years.

Also, when looking for investment advice from magazines, books and newspapers, you’re likely not going to find much help. Most savings and investments reports/publications are written for salaried employees – their paychecks are normal, yours isn’t.

We’re really hoping you’re saving for your retirement. Here are a few tips to help you get going.

  1. When putting away money, use a percentage of each paid invoice. Don’t use a flat fee as your payments can greatly vary.
  2. Start small. Save a little off each payment you collect. Take 2% or 5% and put it into a separate bank account.
  3. Generally increase your amount to 15-20% or so. It seems like a lot, but you do want to retire, right?
  4. Use a separate bank account that is harder to access such as ING. This can delay you accessing your precious savings for a few days.
  5. With your savings, create an investment strategy. You’ll likely want some professional help. Also check out the book “The Money Book for Freelancers” which has great tips.
  6. Get a financial adviser. This is different than a accountant who manages your books and business. Get someone with your personal retirement and investment strategy in mind.

Starting saving this New Year so you can put your feet up one day! Imagine the day you’re not working on Sunday nights. You’re working hard as a freelancer and contributing to the economy, but one day, you’ll want to rest, but you’ll need to plan for it.


about the author

FreshBooks is the #1 accounting software in the cloud designed to make billing painless for small businesses and their teams. Today, over 10 million small businesses use FreshBooks to effortlessly send professional looking invoices, organize expenses and track their billable time.