Tips to Save Money and budget for travel by freelancing or launching a business

So this one time at band camp, this chick told me how she became a mega fashion mogul by pulling a total #RichKidsOfBeverlyHills by blowing all her daddy's money on sample sales, custom Birkin bags, and Mercedes Benz birthday gifts for friends while also running an online vintage shop and blogging about her style. I was like "b*tch please, that ain't real life!" And she was like nodding profusely, preaching about trust funds being the key to success. So I smacked her. Just kidding. I only locked her in the trumpet closet.

If that were a true story, it would mimic real life today down to the smack. Most of us classy ladies don't go around backhanding people, but we curl up our lips with disgust and envy when we see these dodo brains making six figures thanks to handouts while the rest of us can barely afford the higher-end ramen noodle brand at the corner store.

Don't be like them. Be smarter. Just stop spending your money on shit. Period. Or stop complaining. End of discussion. 

I absolutely promise you that what you think is necessary elements of humane living qualifies as arbitrary bullshit that you can slowly add back to the a la carte menu once you've conquered your dreams. It's really as simple as weight loss being calorie intake - high activity level. Stop playing a part and treating strangers to coffee at Starbucks for "business meetings". Stop paying for internet when its its free at Starbucks. Stop shopping weekly at that Zara around the corner from Starbucks! I learned the hard way how stupidly simple it is to afford starting my own fashion tech company and freelancing.

Now I feel free.

To be exact, I feel free from bad work relationships, packed/cluttered/useless "nothing to wear" closets, unfair and critical office environments where all roads lead to the inferno of fast fashion. I feel free from bad attitudes and sighs that resonate and drip with disdain. I feel free to travel the world solo on my own dime, to eat new food, explore new places, and meet new people. In a sense, I feel free to be myself and to have time to pursue the things in the world that matter to me, not to a devil who wears Prada.

Yes, I have plenty of time to wake up late with crust in my eye and pizza in my teeth. But you might be asking yourself, “Does she have plenty of money?” And the answer is simple - yes and no. I have made time - a choice became easier with each passing day that wasn't spent in a cubicle farm - trying to make a name for myself in a sea of worker bees, and I realized time exists invisibly but one must also create it. But I also changed my expectations about financing and made money to start off my freelancing career that would in turn be the seed capital for launching my own business. The truth is this: fear of financial crisis or lack of stability is no reason to hold yourself back from trying your hand at freelancing and dream pursuit. Seriously, it is just an excuse. First of all, I needed to change my beliefs about money. Living a meaningful and fulfilling life has little to do with money. I didn't start off making as much as I once did when I was under contract at high paying firms or on staff at magazines, but that's okay. I was finally pursing my true passions which is working for myself. The lack of extra spending money for my daily Starbucks didn't seem to matter anymore because I just exchanged that habit for gratitude of going once a week with J. This doesn't mean that I am “allergic” to money. It means that it is simply not the main focus of my life anymore.

Expenses, even though you hate numbers

The first concrete step I took towards reigning in my spending so that I could freelance was learning what my expenses were and what sort of budget I wanted to create for myself. The slap-in-the-face reality is that everyone has necessary expenses that are non-negotiable. Unless you are living in a cardboard box and reading this through a hacked Internet source, you at least pay rent (or mortgage for fancy pants misses). Get out a pad and a paper and jot your necessary expenses down. Items to consider are:

• Utilities <-- I pay $29 for Time Warner and $45 or less for heat in NY
• Insurance <-- I mean honestly, how many of us have insurance these days?
• Gas/Transportation <-- Get a bike and save the environment, and yes you can bike in a dress
• Food <-- I pay $30 or so per month on eating out or pantry staples, J pays the rest
• Savings <-- I resolve to start a savings account again one day, its just too 90s for me right now
• Phone <-- I chucked the contract BS and got Virgin Mobile using wifi to bypass the monthly $35 

You know your totals. Mine is $332. That's it. Write down your number and tally it up. It's so much more fun than your sex partner number isn't it! The list you have created is your bottom line. This is what you need to make to survive. There are plenty of other optional things that you can add to the list. I still go out and get a much needed mani and facial when my pores start to resemble strawberries, but if you want to freelance, you might need to give something up. One item that you probably don't want to give up is health insurance. Again, it's up to you. If you want it there are several options to consider such as:

• Purchasing a high-deductible policy 
• Checking prices with the Freelancer’s Union 
• Getting insurance through your spouse’s employer or mommy and daddy

Now on to the management part, which I love because organizing is a great stress reducer. As with most theories that I toss around this here blog, when it comes to your budget it pays to keep it simple. In a phrase: spend less than what you take in. See, its a money diet! You don't need a math degree to understand how this works (well, maybe some of you do). Plenty of scandalously rich people are in stupid amounts of debt because they spend more than what they make.... because they “needed” that custom-built jet plane with gold edging. A more real world example is the girl in the department next to you who screens deliquent collection calls because she "needed" a new-with-tags Celine bag before turning 30. Girl, get a clue. Check the status and peer pressure at the door and settle for a canvas tote if that's all you can afford. Debt is for suckers. Which one are you? I use the Learnvest and Mint budgeting personal finance iphone apps to create then track my budgets on autopilot. Yes the hype for both tools are worth it. Get them. They are free. Look how good that is for your budget already! After I signed up, my organized monthly budget looks like this with most of the rent and food taken care of by my boo while I launch my project (if you don't have a boo then go home to mom again, move outside the city, or try roommate living one last time, but this should only be temporary, you need to afford all your own expenses to test truly being profitable at any endeavor):

• Internet $29
• Utilities $40
• Personal Assistant $62
• Bank Fees $3
• Coffee $8
• Groceries $18
• Fitness $60
• Hair Maintenance $10
• Spa $35
• Clothing $40
• Then in order to keep these costs this low I do my own hair (unfortunately) now, I use deal sites every so often including my top choice for hedonists called Gilt City, and I take advantage of joining email newsletters for brands and stores so that promos are sent to me without any effort, then its just a matter of using them before expiry dates. Download instead of paying for cable, or for the truly demanding cinema fans, get a TV and just hook it up to your computer for streaming. Oh, and don't underestimate the power of your local city paper!

We will get to income in a second but if you are struggling with how to make this budget work, consider simplifying your lifestyle and opting for a minimalist approach. For example, you could cut out cable, get rid of your car, eat out less or change your phone plan. I know, you love your shows and your car makes life so easy. But consider this, you are going to feel so much better if you aren't sitting on your ass in front of the couch or in your car for extended periods of time. Who knows? This could be the change you need! Get creative. Your dreams are waiting. If you quit your job, chances are that you have some idea as to where you want to start your new career.

Now that you know how much money you will need to survive, it is time to start looking at income. Don't exchange your soul deforming dream in for another ball and chain. Dream a little and identify your passions. I did leave the fashion industry but that didn't mean that my heart wasn't in it anymore. But after years of “typical” office work and water cooler gossip, I changed. Or to put it more honestly, I was seriously disillusioned with the whole concept because the veil had been lifted. This was not a glamorous life and I was not leading a life that was making me happy. But I am passionate about local businesses and sustainable fashion choices. I want people to engage in the fashion industry in an authentic way and so I create my work around that general principal.

Identify your mission.

The next step is all you - its work and networking and endless hours knocking on any conceivable door you can think of. It might seem crazy at times, (and Lord knows, I feel all sorts of crazy right now) but you can do it. With a trained perspective on finances you really can enjoy free and creative pastimes that will center around your passions and your values. It's time to let go and live. Your fear is the only thing holding you back.

Every other week, we’ll look at an important ingredient of your WFA experience. Things like:

project planning

productivity tools

self care

communication

scheduling

billing

home office design

and more

And if there’s a WFA topic you’d like to discuss, let me know! You can reply to this email, and it will come straight to me.

Thanks for joining me in our WFA journey. 

what can you cut out of your expenses right this minute? would love to hear your budgeting tips!