You have finally decided that you do not want to take orders anymore. You want to be your own boss. You want to become a freelancer. So, with your strong will you decided. That is a significant turn-about. But, the next question is how much you will need to be on your own.
First, you have to consider what business you will venture on. Do you need to rent a separate office or you can just work at home? How many computers or employees will you need? Do you need to buy new equipment? How much will your electric bill soar?
Second, you have to make everything legal. If you are thinking of opening your own business, you have to acquire the necessary permits from the government for that. Even if you will just be a small-time freelancer, you still have to pay some taxes you know.
Third, get a calculator then estimate all the bills and grocery items you need to pay for within three months.
Fourth, you have to get insurance. Whether be for health or for fire, you have to be assured that your well-being and your properties are not compromised.
Fifth, add all these future expenditures and multiply it by two. The product would be the least amount of money that you would need to become an independent freelancer. It is much better that you have an allowance for mishaps than sinking rock bottom. You need to stay afloat during your starting months.
Borrowing money from a financer could be your escape route, but this should only be your last resort. Take time to save in a bank. You can also opt in selling some gadgets or belongings that you do not use anymore.
Remember, freelancing has its rewards if you know how to do budgeting properly.
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