Taxes & business banking for the self-employed


Self Employment & Freelancers #1 Anxiety: Money

Last updated on May 29, 2020

Kate Bailey

Freelance Editor

May 29, 2020

Money is it’s own special anxiety and you do not have to be self employed or freelance to know that. That is because it is a resource attached to our time and it also can determine how efficient or inefficient our lives, businesses and stability can be. Are there any pro-tips on confronting this number 1, and inevitable, anxiety? Of course, budgets and forecasts are the first things that come to mind but that is more just something that needs to be done - not entirely a method to ward off all anxieties and in practice it could even create more.

Mental Health, Poverty and Money

American scientists report that money problems can affect our thinking. Existential anxiety seems to occupy the brain so much that one can hardly concentrate on other mental tasks. This would mean that poorer people would also have such an effect difficult to find a way out of their situation. And it is entirely true, financial hardships affect the concentration, so you make more mistakes and those mistakes can make poor people even poorer in a worst case scenario. Even older studies have shown that people who have little money to live tend to behavior that harms their own well-being: For example, they often come too late to appointments, work less productive, more often than others do not follow their doctor's instructions and can handle money more poorly.  Some argue that poverty is often associated with a lower level of education and that poor people simply "do not know any better". Others argue that people without adequate cash have less chance of meeting expectations: for example, they may be late because they do not have a car and need the bus. Still others refer to the chicken-and-egg problem and see the cause of poverty in the inherently lower capabilities of certain people. As a freelancer you are probably experiencing enough privilege to already be in that situation and we are not shaming these studies, merely discussing them to preface the remainder of the article. 


This is financial anxiety: paying keeps you a second longer than necessary; or you look away when you give someone money; and all beautiful experiences you can not enjoy because of the associated costs.

Possible reasons for your fear of money: your parents have often argued about the money; They grew up feeling that the family never had enough money. This is how fear affects your finances: you do not invest your money or only poorly; You spend more than you can afford to have debts again; You feel poor, no matter how much money you have real.


This is financial shame: they think you do not earn enough; They envy others who have more.

Possible reasons for your shame when it comes to money: As a child, you were ashamed of the (alleged) poverty of your parents; They had a dramatic experience that others could afford more than you.

This is how shame affects your finances: you do not dare to demand a decent wage for your work; You neglect your finances; Defeats are not a problem for you, but successes.


This is financial rage: they are angry with others who do not pay you enough for their work; You're mad at yourself for buying unnecessary things with your money or for not putting it to good use.

Possible reasons for your monetary woes: You have seen in your childhood, how someone was financially exploited or tricked; This is how anger affects your finances: you feel that everyone wants to cut you over; They buy too expensive (with which your subconscious proves to you that you were right and were ripped off again).

Most people are convinced that their fear, shame or anger was caused by their money problems. However feelings start at the beginning. The financial situation then develops according to these emotions. Therefore, you should analyze these feelings before you can change anything in your budget.

Try This - Money Without Numbers

Take a piece of paper. Think about your current financial situation (loans, credits, expenses, current obligations, future prospects) and write in 3 or 4 sentences how you feel about it. Do not write numbers or financial jargon, just what you discover in your mind about money.

The First Feeling

Take a second sheet of paper. Put yourself back in your childhood and look for your oldest memory of money. Do not write down the story again, but only your feelings at the time. For example: "I felt rich with the medal, but I was afraid to lose it. My mother had taught me that. "

Disconnect from ownership

People spend a lot of money to buy things. They like to keep things in order to feel rich through ownership, and they are afraid of losing. But this fear deprives you of the opportunity to get more. Unnecessary ballast has the peculiarity of multiplying and forming negative compounding interest. Money spent on things that are not themselves generating money is dead. The healthy cycle of money is broken.

People Come First, Not Money or Things

Many people think you feel rich when you own a lot. But we become really rich through the recognition of the people around us. Do not hang your heart on things, but on people. Most important in your life is what you cannot buy for money: your partner, your children, your family. The things you can buy for money should not blind you to people. The next step to true wealth is the motto: less things, more money. Do not invest in the present, but in the future. Money in circulation is increasing, whether invested in equities, in real estate or in a company of its own. Money means possibilities.

Practically Save So You Have A Buffer

Truly a safe and top tip for those who want to run their own business full time is to save for a buffer that gives you a minimum of 3-6 months of not worrying about money. .It will come up with costs and expenses and the best thing you can do is be a little prepared to avoid the money anxiety from day 1. If you have a buffer, you also need not be desperate for your first customer or be stressed over unexpected costs. If you have a buffer, and it's okay to use it as an investment for this. It is a great idea. But it is still difficult to do and that is really understandable. Mentally people really seem to dislike being in the minus. And even when they are not on the minus, who knows what next month will look like? Saving for the buffer really is a fantastic long term goal.

Liquidity, Baby...

Many people think money is hard, but believe me, it doesn't get any better by ignoring the numbers. Be sure to keep a reasonable track of your costs and income. Calculate how much you should aim to get into the company in order to live with the salary you want. And adjust your spending by how much money you actually receive. If it's tight at first, maybe you can cancel Spotify and Netflix for a few months? Eat a little cheaper? Many streams small and so on.

We know there are just so many mistakes and issues and it really is just another one. That said, money is a universal concern and we hope that at least in regards to your business you are rethinking or wanting to rethink your approach to money and the inevitable anxiety that comes with it.