Financial Advisors for Freelancers: Why and How to Work With One
Freelancing can be messy. Financially. That’s not always a bad thing.
Messy can mean having multiple income from multiple projects or it can mean you’re struggling to balance your monthly expenses with how much you’re making. Either way, it’s a mess. It takes time to learn the ropes and perfect your cash flow and sometimes, the shitstorm happens. It happens to the best of us.
This is where financial advisors for freelancers come into the picture. I know, hiring someone is another expense but they can be pretty useful too! And yes, they can help you grow your business!
Is it worth hiring a financial advisor?
Short answer: YES
Okay, it depends on so many things. Financial advisors help you manage your wealth. And I’m not saying you should be hitting 10k months before you hire an advisor. Wealth simply means money, no matter how big or small. With freelancing, money flows pretty fast and the current can be unsteady—some months you have a lot, other months, not so much.
Dealing with these things, as well as learning about investing, taxes, and business growth would be easier when you talk to an expert. YouTube videos are helpful. Facebook groups are helpful. But having someone who understands your lifestyle, workflow, risk appetite… that’s so much better.
At what point in your freelance business should you consider bringing in an advisor?
If you’ve got something to manage, as in if you have multiple clients, it’s time to start thinking about bringing in a money expert. If you’re making, say $5000 each month, that sounds great and it may be enough. If you’re not managing it well, you’d still be in trouble. Especially if that 5k comes from different clients and hits your bank account at different times.
Of course, you can DIY these things. You can turn to good ol’ pen and paper to budget your money and make sure you don’t mix up the dates of your financial responsibilities like rent and bills. But if you’re upping your lifestyle or your business, it’s a good time to start looking for advisors to hire. Here are some questions to further help you:
Am I often overwhelmed with my finances?
Do I struggle with budgeting and saving up?
Do I struggle with growing my business?
Am I capable of investing and handling that investment on my own?
Things to ask when choosing a financial advisor for freelancers
Once you’ve figured out you need an expert, the next part is to figure out how to hire that expert. What questions should you ask them? Can you fully rely on the details on their website? How do you know they’re compatible with what you’re looking for? Finding a financial advisor for freelancers is like finding a dentist. You have to do your research and do it well. These questions would help:
What’s the difference between a fiduciary and financial advisor and which one are you?
How long have you been doing this and do you have a specialty?
Finances in freelancing are not always stable, how can we handle this?
What are your rates and how would you like to be compensated?
Can you share a little bit about your financial and investment philosophy?
Keep in mind that these conversations with your potential financial advisor are opportunities to get to know them better. It’s not just about how much money you have to pay them and what you can expect from them. More than that, these conversations will help you get a better sense of how they perceive money, investments, and the freelance business. Get to know them as people, not just as someone who can advise you and manage your money.
Financial advisors for freelancers you need to check out
Just like any kind of freelancer, the internet is an ocean full of people offering financial planning services and the likes. It’s not always easy to find one whom you can truly trust. One of the best ways to get started is to follow financial advisors on social media.
Just a quick disclaimer, the list of folks below are not affiliated with Wethos and I am no expert in vetting financial advisors. But they’re the ones I follow and I’m always learning something new from them. So, go check ‘em out!
Lisa Conway-Hughes
Based in London, England, Lisa founded Miss Lolly 8 years ago. I’m not a UK citizen but what I love about Lisa is that she explains complex things so easily. Definitely a must-follow if you easily get overwhelmed with pensions and taxes.
Zina Kumok
Zina is more of a money coach than a financial advisor but I’m a fan. Her target clients are people who want to ease their financial anxiety and if you’re not ready to dive in, she offers a free 20-min call!
Treyton DeVore
I discovered Treyton through Twitter around this year and I’ve been following him since. Treyton is a US-based financial planner specifically for freelancers and creative entrepreneurs. Whether you’re thinking about expanding your business, investing, or simply figuring out how to budget better with what you’re making, this guy can help.
ControlHQ
Another one specifically for freelancers, ControlHQ’s social media accounts are packed with tips and advice for solopreneurs. ControlHQ calls itself a “financial company for independents” so it’s not a single entity. But I’m telling you, if you’re just starting, following them will enlighten you about all things finance and freelancing.
Trusting a stranger with your financial plans is not easy. This is why doing your homework is vital. Make sure your financial planner or advisor is licensed and has a solid track record. And if you’re unsure, don’t rush it. Read articles, watch YouTube videos, follow relevant people on social media. Having a financial advisor can be very beneficial, but making this decision doesn’t have to happen overnight.