Pinning a Value on Your Time

Writers, like other artists, often have a hard time when it comes to pricing their work. With visual artists, it’s a difficult prospect because a project may take hours and hours of grueling work before its completed. If they charged an hourly rate, their work would be overpriced in the market place. Instead, many just take a wild guess and figure that if someone wants one of their pieces bad enough, they’ll pay whatever it takes to get it.

As a writer, on the other hand, if you produced one copy of a book, for example, and charged what it took in time to produce it, no one would buy it. But as a writer, you have an advantage. You have to ability to produce multiple copies of a work or get paid by a publishing company for them to do so. Artists who have adopted this same business model are doing significantly better than those that don’t.

Still, how do you figure out what your time is worth? The first thing you have to remember is that you’re in business. And as such you have overhead—the cost of utilities, including phone and the Internet, office supplies, postage, food, transportation, insurance, equipment, clothing, etc. All that adds up! And before you can make any profit, you have to be able to pay for it all.

There’s no guess work involved when figuring out what your hourly rate should be. It’s simple mathematics. First, you add up all your regular monthly expenses, then you factor in the cost of extras, such as buying replacement equipment. If you can’t wait to get the latest smartphone, then you’ll have to add in that cost to the mix. You can’t leave anything out.

Next, you need to divide your total monthly expenditures by four in order to get the amount you spend per week. By dividing this by seven, you’ll find out what you spend per day—even on days when you’re not actually working.

If you work the standard 40 hours—not necessarily 8 hours per day—then you should divide your weekly total by 40. Let’s say your monthly expenses come to approximately $1,600, then your weekly expenses would be about $400. Dividing that by 40 hours gives you an hourly rate of $10. But that doesn’t allow for any profit, so you must add on an equal amount or higher to make sure you’re getting enough to cover your expenses and make a profit.

However, you won’t necessarily be working steadily as you would in a salaried position. Instead, you may work more one week than in another. Generally, money won’t be flowing in regularly. So it’s a good idea to make your hourly rate slightly higher to cover the times when you may not have any work. In the beginning, you can possibly shoot for a lower rate, increasing it as you gain more experience and more complex assignments.

While you probably won’t ever get your hourly rate, at least you’ll be able to judge if what you’re getting paid is enough for the time you put into your work. You may also want to consider establishing a minimum rate for writing projects. But don’t make that rate too high or you’ll be cutting yourself out of some easy jobs that overall will net a higher profit.

While you won’t have much control when it comes to be paid by editors of magazines and newspapers—essentially, they generally tell you what they’ll pay you—you still need to know if what they’re paying is enough for the time you put in on a project.

Many freelance writers make the mistake of putting in the same amount of work on each article they write and then get paid a different amount for each piece. But unlike products produced by other businesses, no one piece of writing brings in the same amount from different publications. You may get paid $300 from one publication and $50 from another for exactly the same piece. Also, some editors may only pay a pittance but ask for a lot more work. It’s only by knowing your hourly rate that will enable you to decide it what they’re offering is enough for you.

How Much Should You Sacrifice for Writing?

No matter how you look at it, writing whether full-time or part-time requires you to make sacrifices. These may be just little things like skipping your favorite T.V. show to getting up at the crack of dawn to going into thrifty mode and cutting way down on expenses. You may choose to do just one of these or you may be forced to do all three. And sacrifices don’t come easy.

Skipping your favorite T.V. show is easy. You may be lucky enough to have the technology to record your program to view at a later time. That also means you’re probably paying your phone/Internet or cable provider a hefty fee for the privilege.

If you’re still working at a full-time job, then you may have to create time to write by getting up before the chickens. While that may sound like a good idea in theory and it may work for a short while, the stress on your body from not getting enough sleep will eventually catch up to you. To be able to rise before dawn means you should probably go to bed at sunset.  That means that you’ll most likely be doing so right after dinner—not good for your digestion.

Lastly, you can cut back on your expenses—or better yet, put yourself on a strict, but reasonable, budget. Doing so will do two things. It will take the stress off of you to work long hours to pay bills that are higher than they should be. And it will help simplify your life. While this may work well if you’re single, it probably won’t work if you have a family. Those little mouths beg to be fed—a lot.

But controlling your expenses doesn’t have to be a severe sacrifice. First list all the expenses you can’t do without, such as housing, food, temperature control, transportation, food, etc. Then list all the expenses that are extra luxuries. This will be a subjective exercise because what’s a luxury to one person may be a necessity to another. While you may not want to give up your Starbucks coffee, you could switch to a less expensive coffee shop. But if you can’t give up the former, build it into your budget.

If you go to the movies once a week, consider getting a T.V. control box that will let you stream movies and T.V. shows from such outlets as Netflix, Hulu, or HBO. You can watch a whole lot more movies and such for the small amount per month that they charge.

A big expense is transportation. Consider driving less or buying a compact car that gets really good mileage and costs a lot less to maintain. You really don’t need an SUV or a van, even if you have a couple of kids. You can also take public transit if it’s convenient for you. Also, shop around for less expensive auto insurance that will give you the coverage you already have. Combining homeowner’s and auto insurance will allow you to get discounts.

Shop for clothes at less expensive retail outlets—skip the mall and department stores. You may even want to buy some of your clothes at local thrift shops. Chances are you’ll find some excellent brand-name items for a whole lot less. Sporting an L.L. Bean shirt that you purchased for $5 is a lot better than buying it new from the source for $50 or $60. Clothes from this retailer are made to last, so even used ones will be fine for a long while.

Cut back on eating out. “Cutting back” is the key here. Eating other than at home will be a treat if you do it once in a while. Also, keep your eye peeled for coupons and enroll in rewards programs. Not only will you get a free-bee once in a while, but you’ll also be privy to special promotions and discounts. Cook larger batches of food and freeze them in meal-sized portions. Not only will this save you money, it will also provide delicious prepared food when you’re too tired to cook.

Skip the gym but don’t skip the exercise. Work out at home. Invest in dumbbells or just do bodyweight exercises. You can also search YouTube for exercise videos. Or do the easiest exercise of all—walk around your neighborhood.

If you put your mind to it, you’ll find plenty of ways to save a buck or two. And before you know it, your life will be a lot less stressful, plus you’ll be enjoying yourself more as you find time and energy to write more.

Keeping the Wolf at Bay

Don’t kid yourself. Freelance writing is a tough business. If it’s not one thing going wrong, then it’s another. Sometimes, it’s hard to keep ahead. And keeping the wolf—no, your creditors, but depression—at bay can be daunting.

Writing is a solitary business. You can’t write with other people, but it’s those other people who can help you when times are hard or things start going downhill. So the first thing you need to do besides get your writing skills in order is find some friends. Actually, you really only need one good one, but a few occasional friends will do just as well. These may be people you used to work with, neighbors, people you’ve met online, perhaps even family members. But all of them should have one thing in common—their general interest in your writing and your welfare.

An interest in your writing doesn’t necessarily mean that they have to read everything you write. Perhaps when they call you or meet you from time to time, they might ask how things are going or what projects you’re currently working on. Discussing what you’re writing with them may even give you some new ideas.

Among your friends, you should be on the lookout for someone who is especially creative. They don’t have to be a writer, but a person who thinks creatively. Not only will this give the two of you something in common, they may be able to help you out with a difficult creative problem once in a while. And having someone creative around will keep your mind sharp.

One of the things that can drag you down is difficulty in finding work. Let’s face it, this can get anybody down. Just ask anyone who lost their job during the recent recession. But you have an advantage. As a freelance writer, you have many avenues open to you. Don’t be so narrow-minded as to think that you should only write books because that’s where the notoriety is. Become a well-rounded writer. Remember, if you can write, you can just about write anything—if you know the format.

Another depression-prone problem, related to that above, is being able to pay your bills. Make it a point to cut your costs and keep them in line so you don’t spend more than you make. And if tough times do happen, ask for help. You may at least have to find a part-time job to get you out of your financial mess.

A good depression-fighting tool is exercise. Sitting at your computer all day not only keeps your body from being in good shape, but also your mind. You don’t have to join a gym—another cost added to your already strained budget. You can go for a walk or a jog. You can life weights. You can do things around your home—cleaning, repairing, etc.

Related to exercise is good health. Get in the habit of taking a daily vitamin and perhaps Vitamin C. Eat healthy foods whenever possible—not the trendy kind, the real kind. You don’t have to shop at a health-food store to eat healthy. And you don’t have to follow any of the trendy diets out there. Just eat a balanced diet. And watch your sugar intake. For some people, the amount of sugar they ingest is directly related to their mood. While they feel good after they eat it, their mood tumbles soon afterwards.

Reward yourself for good behavior. Take a day off, or at least an afternoon, once in a while. Go somewhere and have a cup of coffee. Bring a book along to read. Relax.

Keeping all of the above in mind will not only help your mood but will aid in your writing. And isn’t that really your goal—to write the best you can and make the most of every situation.

A Penny Saved is a Penny Earned

To celebrate Independence Day weekend, it’s appropriate to look back at one of what seemed to be one of the thriftiest persons in American history—Ben Franklin. Well, he really wasn’t thrifty at all. He just advised everyone else to be so. Good ole Ben lived a luxurious life, with fine clothes, gourmet foods and wine, and the best entertainment.  So now is when you say, “How can I do that and still write for a living?” You can and without sacrificing anything.

The trick here is to change your priorities. You need to be, as old Ben said, “healthy, wealthy, and wise.”

To keep health bills under control, you need to be healthy, and that requires eating right. Learn to cook good food. If you have to, take a cooking course to get you jump started. Don’t rely solely on prepared or frozen foods and eat a balanced diet. This means staying away from fast and junk foods. And staying healthy will help with health insurance. Shop around for that, too.

While you might think growing your own vegetables will save you money, think again. It takes time and energy—time you could better use writing—to grow a good garden. Then when everything comes to harvest at the same time, you’ll most likely have too much to use and will end up giving most of it away. The short time homegrown veggies are available—usually for a month or two—doesn’t make them a money-saving option. Better to find a market with good produce or a farmers’ market in your local area. And speaking of groceries, shop at one regular market, supplemented by goods from dollar stores and perhaps limited, and lower-priced markets like Aldi.

And for clothes, shop at thrift stores whenever possible and take advantage of end-of-season or clearance sales at other stores. Generally, stay away from more expensive department stores.

Limit your entertainment. Today, you have lots of possibilities, so you don’t really have to go to the theater—an extremely expensive night out. The same goes for movies. Instead, subscribe to Netflix, either for monthly streaming or DVDs for $4.95 per month.

Shop around for the best phone and Internet package. Forget cable or satellite T.V. unless you have really lousy reception. That’s the most expensive part of any communications bundle. If you want a cell phone, consider purchasing a prepaid one. And forget texting and data streaming. That costs extra, and you really don’t need it. Remember the days not very long ago when if someone called and you weren’t home, they just left a message on your answering machine?

Do your own repairs whenever possible. And to keep repair costs down, do regular maintenance around your home. Consider low-cost extended warranties for appliances that may continually give you problems.

If you have a mortgage on your home, consider refinancing. While this will extend your loan, it can save you a bundle each month. In the end, it’s like renting your house from yourself. You’ll pay much less each month for a mortgage payment, including escrow for taxes, than you would if you just rented a house or apartment, plus you gain equity.

Consider keeping your present car, if you own one, and doing regular maintenance to keep it in good working condition. If you need a new car, think about leasing. There are some terrific leasing deals out there for about $150 per month with 12,000 miles a year. Get the most economical car you can afford in your comfort zone. Since you most likely are working at home, you won’t be driving as much. Diving less not only saves on gas, it also saves on repairs.

Buy all your insurance from one company to take advantage of their multi-policy discounts. And don’t skimp on car insurance. Many plans come with roadside assistance which can come in handy if you have an older car.

If you like to read, and what writer doesn’t, buy used books instead of new ones. Browse library book sales and be sure to check the used editions of any books you plan to buy on Amazon.com. Also, go through your library from time to time and sell back some of your books to Amazon.

Everyone needs a vacation from time to time, and writers aren’t any different. But instead of flying off to some exotic location—unless it’s a special trip you’ve been planning for a while—travel closer to home for shorter periods. Take a few days off during the off-season and go to places that interest you or where you can just relax. Many hotels offer weekend packages that include some meals.

Finally, only use credit cards to control cost, not to run a tab. Pay them off every month or at the most every other month.

To enjoy working as a writer, you don’t need to sacrifice anything. You can still have that cup of java at your local coffee bar. You can still have all the devices you need—T.V.s, cameras, cell phones, even a tablet. All in all, you can live a comfortable lifestyle.

Budgeting for Success

Freelance writing is one part creative skill and one part business sense. The only problem is that too many writers who get into this business don’t have much of the latter. Unfortunately, this came from what most learned in school—albeit subconsciously.

Writing has always been looked upon as an intellectual endeavor. Therefore, it shouldn’t be tied in any way to business. But when you’re in business to make money, having a bit of business sense is a prime concern. And if you’re going to make money in this business—at least enough to live on—then you have to know what’s coming in and what’s going out. If these aren’t relatively balanced, you’ll be out of business sooner than you think.

To keep tabs on your finances, you’ll need to create a budget based on what you’re spending now and what you predict you’ll spend in the not too distant future. The best way to do this is to create a budget sheet for each month for at least six months. Doing so will let you know if you’re going down the right marketing path and making enough money to cover your expenses. Once you know how much you can afford to spend based on your earnings, you’ll be able to take control of your finances. If you're always coming out in the red, you’ll find it easier to change your work patterns once you're faced with the actual figures.

One of the best ways to start budgeting is to faithfully record the details on your budget sheet. After you've recorded these for a month or two, you'll have a better idea of what sums to enter in your budget for the month. At the end of the year, add them up and divide by 12, putting the resulting figure in the proper slot, even though you may pay some bills quarterly, semiannually, or annually. With an accurate monthly record, you'll be able to more easily adopt counter measures if your receipts aren't tallying with your expenditures.

Lay out your budget sheet like this: Divide it into three columns.

The first lists your sources of income for that month, your uncontrollable expenses, and your net income (the first minus the second). Under that, list your regular expenses—mortgage or rent, gasoline, equipment, office supplies, utilities, travel, etc—and the their totals. At the bottom, create a line for profit or loss.

The second column lists the predicted and the actual amounts in each category in the first column.

The third column lists the predicted and actual totals for the year to date.

A budget sheet faithfully kept will show clearly where your problems lie. Are expenses in one category heavier than you imagined? Is disaster looming around the corner if you continue to work for a specific market? Where and how can you cut down on expenses? Will you have to negotiate for a higher fee from your best client? Should you aim for more sales volume? Do you need to consider getting a part-time job? Are you paying too much rent? Are you billing properly? Has your inventory of stories and ideas been turned over quickly enough?

Obviously, this budget sheet, too, needs to be balanced monthly. Be sure you carry over the figures on the following month's sheet where indicated. To accurately record figures on this sheet, you'll have to tally up those petty-cash slips you've collected. Keeping an account of each expense as it occurs will help you tremendously in following a budget plan.

Count in the current inflation rate when you're setting up your future budget pages, saving yourself from too many unpleasant surprises when new costs arise. For instance, is your phone/Internet plan slated to increase next year? What about your health insurance premium?

By keeping an accurate tally of your income and expenses, you’ll be able to tell when you may possibly be getting into hot water. If you don’t, you may find yourself reaching for that life preserver all too soon.

10 Ways to Keep Your Bank Balance in Check

Thanksgiving Weekend always seems to be the time when people look for bargains, especially on Black Friday. But as a freelance writer you need to look for bargains all year long. The best way to stay ahead of your bank account is to follow these easy steps.

1. Try to keep a cash reserve in your account to cover the slow months. Use it only for this purpose and replenish it as soon as possible. An easy way not to overdraft your account is to make this cash reserve invisible. In other words, set your ending balance without taking it into account. So when you’re at zero, you’ll actually still have money in the bank. This allows you to not only keep some money aside but also to avoid those high overdraft fees.

2. Another way to keep your income safe is to open a special savings account and deposit all your income in it. Then transfer funds to your checking account as you need them to pay bills. This method works especially well with a sporadic income flow.

3. To make bill paying more efficient, create a Bill Pay Sheet. At the top list all the months in two rows. Under them, list your regular monthly bills set up in categories—mortgage or rent, utilities, credit cards, insurance, etc. Next to each bill listing put the date due in parentheses, followed by the amount you need to pay that month. You can then add up all your bills to see how much you’ll need that month. Cross out each bill as you pay it to keep yourself on track.

4. Synchronize your accounts receivable with accounts payable as much as you can by your early planning method. Know when you’re supposed to be paid, and if you don’t receive payment within a day or two of that date, let your editor know.

5. Apply for credit with your suppliers. If you’re on friendly terms, ask to pay on a periodic basis, if need be, especially if you have established a good credit rating. Explain that your income arrives in spurts instead of on a regular weekly, biweekly, or monthly basis if this is the case. Some suppliers may be willing to bill you on a two-,three-, or four-month basis—allowing you a discount if you pay early. Talk this over with them, explaining it saves them billing and postage costs. Another possibility is to open credit accounts that allow you to pay in three-month or six-month installments with no interest if paid within the allotted time. This works well with car and dental care.

6. Slash expenses to the bone. You can only cut corners so far. But a close analysis of your budget may uncover frills that you can do without briefly without hurting your professional stance. You’ll be amazed how much you can cut your budget and still live a healthy and happy life. Doing this will not only make you more efficient, but will make you the envy of your friends.

7. You might be able to apply for a short-term bank loan for your business, but chances are no bank will loan you the money. Banks are in business to make money, so unless you’re borrowing $50,000 or more, the usual minimum for a small business loan, you’re out of luck. You might want to check credit unions you, your spouse, or other family members may belong to. A last ditch effort may be to borrow some money to hold you over from a family member or friend—this normally isn’t a good idea, however.

8. Join forces and share some of your expenses.  Get together with other local writers or even friends to share services.

9. Take a temporary part-time job. If you do work part-time, try to work at a job that is somewhat related to your writing or the subject matter that you write about. This way, you won’t be wasting your creative energies.

10. You might try applying for a grant. This, like a bank loan, is a slim possibility. Remember, while there are loads of grants out there, unless you can meet their requirements, they might as well not exist. And if you do apply for a grant, be sure to follow the instructions to the letter. If you don’t, you’ll surely be rejected. 

Maximizing Your Productivity

As your freelance career progresses, you may find that you have too many small projects that are interesting but just don't pay their way. Worse yet, you may on occasion work for a publication that doesn't keep its promise to pay. At year's end, even though you've been writing constantly, you find yourself in the hole.

Be realistic about what you can do. Remember, you can only do so much in the time you have. Spending too much time on poorly paying projects will eventually take its toll. So what can you do about it? The answer lies in creating a production schedule for maximizing your productivity.

If you want to improve your productivity for the next year or even the next quarter, you’ll need to take a hard look at what you’ve accomplished and what you haven’t in the last one. After analyzing the data, you need to come up with a production schedule that meets your needs and your lifestyle. Devise a detailed production schedule for the coming year with a built-in review time each month. You should also mark specific billing dates in red, since you’ll want to be reminded to do bookkeeping chores. Doing this will definitely increase your productivity.

Ease into systematic production planning by starting with a desk diary. You should look for one that allots a page to each day, perhaps subdivided into segments, with plenty of space for notations on your production and billing schedules and which will also allow you to note expenses and a list of important contact numbers and email addresses. If you’re somewhat computer savvy, you can use a project scheduling program and while this will work, you may find that being able to write notes and adjustments on a paper one is more thorough.

Begin by writing in the listing for each project the deadline and what you need to prepare for it—basic text, sidebars, photos, graphs, or charts. Include for each a schedule for initial research and library or fieldwork to be completed by a fixed date.

Next note the dates and times for interviews and contact numbers and/or email addresses. Will your interviewees be available when you need them? Also, don't forget to note time differences if they live outside of your area.

Make a note of the date to contact your editor for a progress report. It’s important to let him or her know if you’ve discovered some new material in your research or if the project isn't going in the direction expected. Discussing this with your editor will let you know if it’s salvageable.

Lastly, make a note of dates when you need to obtain permissions or supplementary material, as well as the dates they're due in your hands, ready to be assembled with your text.

Set up a tentative production schedule before you have assignments—a sort of sketch to see how you can fit in trips, interviews, writing time, research time, and such at the beginning of each month or quarter. Some writers prefer to send queries out in groups at the beginning of each month rather than one at a time. Scheduling several interviews in a certain area, for example, not only saves time and effort but also money.

And while editors will always give you a deadline, it’s smart to schedule your own a bit ahead of the ones they'll give you. If you seem to be running to too many places each month, perhaps you could organize your research into three or four trips, instead..

Along with research and deadline dates, make a note of when you expect to be paid and how much. Even if you send a bill with your manuscript, many publications are slow in paying. Ask each new editor you work with when his or her publication pays for work and record that information on your productivity page for that project, then match that against the schedule of foreseeable expenses.

Doing all of the above may sound like extra work but in the end, it will make you a more productive writer.

Planning for the Future

All successful businesses start with a master plan. As a freelance writer, you need to know where you’re going and have a plan in place to take care of contingencies—those times when the markets you’ve been counting on disappear. Perhaps you’ve been putting it off while focusing on getting published. Before you get too far along in your freelance writing career, take some time to compile a more definitive plan.

With a good plan, you’ll be able to review your progress periodically. Doing so will allow you to discover  the need for a change in your direction when your original plan and your checkbook balance are at odds. Plus a clear, concise, well-thought-out business plan gives you a better opportunity to get a loan from your bank or a friend or family member when money is tight or you want to buy some new equipment. Few people, bank loan officers included, ever take freelance businesspeople seriously unless they have a plan in writing.

Your plan should be flexible, but it should keep you pointing—and moving—in the right direction.

A good business plan also keeps your eye on your long-term goals. It will detail priorities in a sequence that will save you valuable time and energy and help eliminate worry, which can be a major distraction to your writing.

When you draft your plan, stick to facts, realities, and valid assumptions. Don't overlook the obvious pluses. Perhaps your spouse has a good, reliable job which won’t disappear overnight. Or you know that you'll be coming into some money in a couple of years.  Or, even better, you’ve been building up your expertise in a particular subject area which will allow you to eventually specialize in it, resulting in reliable assignments.

When compiling a business plan, keep daydreams to a minimum. You’ll only get frustrated if you write a plan based on wishful thinking. Deal in the here and now, not in what you hope will happen. Above all, don't overanalyze, or you'll drown in a sea of data you won't be able to use. Allow a certain amount of time for creating your business plan and then stop. You can always change it later.

If you’re dealing with several different types of markets or other related ventures, such as teaching or photography, you might want to compile some detailed sub-plans. These don’t have to be involved, but should include details for that particular venture to help you expand as you go. Once you have your plan in place, prepare a general To-Do List based on it that you can work into your daily routine.

Now that you know what a good business plan will do for you writing, let’s look at what it should include.

First and foremost, it should include a statement of purpose—what is the purpose of your writing business.

Second, a detailed description of your business, including a list of your specialties, the markets for them, and a paragraph on why you, above others, can give an editor or a client a unique angle.

Third, a discussion of what the market is like for your writing. Included in this section should be a list of opportunities, with specific details about current markets, names of publishers, publications, and editors, as well as other clients. Do the same for each of your specialties or other ventures.

Fourth, a plan for marketing your writing—how do you plan to promote it and yourself? 

Fifth, list your market objectives for one year, eighteen months, two years, and five years. These will help you outline your strategy—specific work you'd like to be able to cover in the year to come, research already available to you, what you'd need to research further, and probable places where you might find  information, plus the time and cost to get it.

And finally, a profit-and-loss statement or budget, including an estimate of your net worth, and a list of your office equipment with a projection of future items that could increase your productivity. This tells you and whoever is reading your plan where you are financially and where you plan to go.

Remember, the more flexible your plan, the more it will allow you to grow your freelance business.

Controlling What Comes In vs. What Goes Out

Let’s face it, unless you’ve just written a best seller and have sold the movie rights to it, you won’t make a whole lot freelancing. That’s the truth and there’s no getting away from it. So to maximize your profits, you have to control your expenses—and not just your business expenses.

To set up a good system to control your overhead, you should take a look at how other small business do it. The first, and most important, thing to do is to keep careful records of what you spend on every item and review the figures regularly. Keep an eye out for bargains and buy in bulk at a discount when you can. Use credit wisely—but don’t become dependent on it. Create a budget and stick to it. And lastly, update your equipment when you can afford to. In other words, put some money back into your business.

You'll want to measure your success against the cost of it to see where you can cut corners and still maintain your needed writing routine. While the latest and greatest computer and phone equipment might be nice and will impress your friends, neither is necessary to conduct your freelance business. In fact, you may not want to buy the latest computer with the latest operating system.

For example, let’s say you have some programs that you know how to use well. It’s likely that if you upgrade to the latest Windows, for instance, those programs will no longer work on your system. You’ll have to go out and buy new ones or new versions of the old ones and that takes money. Plus, you’ll have to take the time to learn the new programs and that takes time and time is money. The same applies to your phone. If you have to have a cell phone, then consider a prepay plan like Tracfone that will enable to you to keep your costs in line and not give you another bill to pay every month.

How you handle the basic, materials of your trade is a matter too important to ignore. However the thought process may begin, you’ll soon find yourself composing and refining your thoughts on paper. Perhaps you’ll begin in longhand on a legal pad. Or maybe you’ll go directly to your computer and compose on the screen. Keep an eye on how you use paper. Do you really have to use fresh sheets for your notes? Why not print out your notes on the used pieces of paper? Likewise, do you need to buy special note pads or can you employ the backs of used envelopes to jot down memos or to-do lists? This may sound frugal, but it does save money. And while you’re at it, why not reuse those large envelopes in which you get other mail. Of course, in all cases, the envelopes shouldn’t have more than an address and return address on them, both of which you can cover over with labels and new addresses. To reseal them, buy some clear shipping tape.

You'll be dollars ahead if you study religiously every tip that comes your way regarding items you can get for less or, better still, for free. Know what you need and be on the lookout for sales. For example, you know you’ll need to buy additional print cartridges for your printer, so why not buy them from a discount house like LD Products and take advantage of their occasional sales and free shipping on weekends.

When you need office supplies, don’t make a beeline for your nearest Staples or Office Max. Instead, check online first and keep an eye peeled for sales of printing paper at your local supermarket when school begins in September and at drug retailers like Walgreens.

Today, you don’t even have to buy books new. There are plenty of places to buy used copies, both online and at book sales. And don’t forget that you can still borrow them from your local library, and they won’t cost you a dime unless you return them late.

Look at each item on your budget, including food and utilities, and examine alternatives. Can you use another service, such as UPS, in place of the U.S. Mail and save money? You don’t have to spend hours clipping coupons to get bargains.

Also, consider how you do your research. Technology in general has enabled people to spend far less for communications. Not so long ago, you would have had to pay hefty long-distance charges to interview someone across country—and even worse, within your state. Today, most phone companies, both cell and land line services, offer package plans that include long distance—one amount for all services per month. While before you would have had to keep a phone log of each call, today you needn’t worry about it. Instead, you can deduct a portion of your phone bill for your business.

You can even conduct interviews or get the information you need by E-mail. An advantage to using E-mail is it enables you to send the questions you want to ask ahead, so that your interviewee can prepare, resulting in a more productive interview. It also enables those who speak English as a second language to get an assistant to send you the answers to your questions in clear English, so there will be no misunderstandings.

Finally, you’ll need to record your expenses so you can interpret them as you go. There are a number of programs that allow you to do this. Try to find one that will let you record each expense right after you pay for it, then will let you compile all your expenses for tax purposes.  Splash Money from www.iambic.com is one such program that works with smartphones, tablets, laptop and desktop computers.

What is Your Profit Motive?

As a freelance writer, you’re in business to make money. How much is up to you. You can write a lot and get paid little or write a little and get paid a lot. Chances are you’ll fall somewhere in between. But one thing is for sure, there are only so many hours in a day, so the amount you make may be limited, especially if you’re writing books or articles for magazines.

If you’re writing books, you can only work on one at a time. The amount of time it takes to research and write a book is staggering while the advance you may receive pays for only a fraction of that time. If you’re a good multi-tasker, you may be able to pound out an article or short story or two while working on your book, but most writers put all their energies into such a massive project.

Writing articles actually pays better in the long run. If you have acquired some steady markets, you’ll be writing constantly and the money will pour in regularly.  If you’re just starting out, you may find yourself strapped for cash between assignments.

So what is your profit motivation? Are you content to make a little while pursuing other creative projects—for this you’ll need a working spouse or a rich benefactor? Or do you need to earn a living to help support a family or yourself if you live alone? Many married women writers claim they’re making a living just like any male writer, but what if they weren’t married and couldn’t depend on their husbands’ paycheck to take care of most or all of the bills? While it may be okay to do this in the beginning, after a while your spouse will grow tired of paying the bills by himself.  The opposite it also true for husbands taking up freelance writing while their wives work at a steady job to pay the bills.

Even if you’ve been publishing and making a modest living at writing, you may be guilty of practices that hinder you from making more money. Maximizing your profit requires you to budget time and money carefully. Will you be able to live on say $12,000 a year or less? Perhaps you had better decide if you love your daily Starbucks latte more than writing!

You need to budget everything. Leave nothing to chance. Periodically review your bills to see if you can lower any of them. This will mean not having the latest smart phone or that big-screen Plasma T.V. that your neighbors have. And while you’re at it, better decide to move from the McMansion you live in now to a more modest house.

But budgeting isn’t all about sacrificing the things you love for your writing. It just means that you need to prioritize. List the things that are most important to you. If that cup of Starbucks coffee or that giant SUV that you drive is important to you, then perhaps you better give up on your dreams of becoming a writer, unless you want to write press releases or advertising copy.

As much as you need to learn about writing to improve your skills, so you should learn about the business of business if you expect to keep your profits growing. You’ll be running a small business. Don’t kid yourself into thinking it’s anything else. Talk to other small business owners. What do they do to make sure they stay in business? While your business may be slightly different than theirs, the procedures are the same, even down to what to deduct on your tax return.

Set up daily and monthly schedules and stick to them. Self discipline is very important in freelance writing. It’s not all about spending leisure time at the café reading Twitter messages from your peeps on your smart phone. It’s about working hard and enjoying your time off, knowing that you’ve done the best job you could getting pieces finished and sent in on time.
   
Review your methods periodically. Weed out the bad habits. Are you allowing too many interruptions to devastate your schedule? Are you letting too much time slip by before you get an idea and propose it to editors or your agent? Are you learning from your competition?

To be a successful freelancer, you have to periodically review your assets and liabilities. You  can’t afford to imagine there isn't room for improvement. Above all, freelancer writers don't believe in giving things away for free. If a publisher isn’t willing to pay for your work, pass them by. You can’t pay for groceries with a freebie.

Do the Hustle

Are you sitting in your corporate cubicle—either figuratively or literally—dreaming of the day when you can quit the rat race and write full time? Does the proverbial grass seem greener on the side of freelancing? Is your boss hounding you to get those reports that were due last week on his or her desk by 5 P.M? If you answered yes to any or all of these questions, then you may be in for a rude awakening when you finally do quit your day job and devote all your time and energies to writing.

Writing and writing to sell are two completely different things. In the first you may write for yourself, for the love of it, not worrying about how much time you’re spending on a piece, satisfied only that you’ve managed to put something, anything, down on paper. In the second, you need to be disciplined, to make sure you finish work on time and get it in so you can get paid. In freelancing, no work equals no pay. Are you willing to live the romantic life of a starving artist? Or do you like to eat three meals a day. If so, you’ll need to do the hustle—the entrepreneurial hustle, that is.

For the moment, forget about the writing. Have you checked your finances recently? Can you live happily without a steady salary, being paid monthly or perhaps in six months? How are you going to be able to live for an extended period while you develop your writing business? Perhaps you better check your older relatives and see if any are ready to kick the bucket and leave you handsomely endowed. For most beginning freelancers that’s not an option.

When you work for someone else, you can get up and leave at 5 P.M. unless you have work to catch up on. Are you going to be willing to work 12 hours a day, seven days a week? Sure, as a freelancer you can set your own hours. But remember, no work, no pay. That’s going to have to become your mantra.

And what about your family? Will you be able to juggle your personal life around your business? If you’re a male, will your wife assume you’ll be able to pick up the kids from school—since you’re not really doing anything anyway? If a female, will you be able to stop and cook dinner for your family or go grocery shopping? To become successful, you’ll have to learn to set priorities. Life won’t be as easy as it was when you worked for someone else.

Work won’t come to you. You’ll have to find it. And that’s where the hustle comes in. You’ll have to study the markets, seek out the best paying ones, or at least the ones at which you have the best chance at publication. This all takes time—time away from writing, itself. Wasn’t that why you wanted to quit your day job in the first place, to write.