Vent: Talked to a friend who's been freelance for 10 years and his advice on savings scared me straight

We were grabbing a beer last week and he asked how much I had saved for a slow month. I said maybe a grand, thinking that was okay. He just shook his head and said, 'Man, you need six months of bills, minimum. I had a project fall through in 2020 and that fund saved my business.' It hit different because he's not a worrier, he's super practical. I crunched my numbers and my rent, software, and health insurance alone are $2,800 a month. That means I need over $16,000 just sitting there, which feels impossible. How do you even start building that up without going crazy?

2 comments

2 Comments

gonzalez.vera2d ago

Okay but is that six month rule actually realistic for everyone? I know a few freelancers who just keep a tight budget and line up the next gig before the last one ends. That huge cash cushion sounds nice but feels like overkill if you're good at managing your pipeline.

susanp502d ago

Yeah but @gonzalez.vera, that pipeline can dry up fast.