Are you tired of working hard all year long, only to realize that you have no idea how much money you made from your side hustle? Tracking your income is crucial for freelancers to understand their earnings, expenses, and, most importantly, profits. The side hustle income tracker in this blog will help you stay on top of your freelance finances so you can track your financial goals, and avoid surprises when you file your taxes.
Why Tracking Your Income Matters
Working a side hustle is a great way to build financial independence. Still, without a solid grasp of what you’re earning, it can be difficult to accurately plan a budget or gauge how profitable your side hustle truly is.
Track your earnings to plan budgets, meet tax obligations, and achieve specific goals like paying off debt!
Tracking your earnings will help you:
- Identify patterns and trends in your cash flow.
- Make smart decisions regarding your business investments.
- Prepare for tax season and avoid surprises
- Create a realistic budget that supports your financial goals.
Free Side Hustle Tracker
Find Patterns and Trends in Your Earnings
By tracking cash flow, it is possible to identify trends and patterns that indicate problems or opportunities in your earnings. For instance, if you notice that you are consistently making more money during certain months, you can adjust your spending habits accordingly.
Understanding your expenses and income will also help you spot any discrepancies or areas where you have overspent or under-budgeted.
This knowledge helps prevent freelancers from overspending when their income is variable or uncertain. A deep understanding of your cash flow makes it easier to plan ahead, save for the future, and pay taxes on time.
Freelance Budgeting for Success
Whether you’re a full-time freelancer juggling numerous gigs or someone with a small part-time side hustle for extra cash, you should track your income and expenses.
Calculating the profitability of your side hustle and determining available funds for bills and financial obligations is key. This allows you to accurately allocate money, predict future earnings, and strike a balance between personal and business expenses. Stay on top of your finances by assessing the financial viability of your side hustle and planning accordingly.
If you’re new to budgeting, you can find guidance and a free worksheet on our budgeting blog.
Meeting Tax Obligations
As a freelancer or side hustler, your tax obligations may differ from those of traditional workers.
Tracking your side hustle income can help you:
- Determine whether you need to make quarterly estimated tax payments.
- Identify deductible business expenses, which can save you money in the long run.
- Avoid any unpleasant surprises from the IRS during tax season.
Earning side-hustle income to pay off debt?
Using a side hustle to earn extra money is a popular way to pay off debt! Despite the obvious benefits and potential of having a side hustle, it’s not always easy to make ends meet. If your side hustle income isn’t enough and you’re still struggling with debt and financial hardship, don’t blame yourself!
It can be tempting to work yourself ragged to make more money, but this can be detrimental in both the long-term and the short term. Instead of trying to work around the clock in hopes of earning more money, focus on finding ways to make your side hustle income go further while taking care of yourself.
If you still live paycheck-to-paycheck despite your side hustle income, it might be worth exploring alternative options such as debt consolidation.
Setting Financial Goals and Paying Off Debt
When you track your side hustle income, you gain valuable insights that enable you to make informed decisions about your financial goals (e.g., saving for an emergency fund or splurging on a well-deserved vacation).
It also allows you to allocate funds to pay down debt. Dealing with debt is an essential part of creating financial stability, and the extra income from your side hustle can significantly accelerate the process.
Want to learn more about different side hustle ideas? Check out our blog post!
Make the Most of Your Side Hustle Earnings
If you are working a side hustle to help pay down your debt, talking to a Consolidation Specialist at Accredited Debt Relief could help deal with debt more effectively and make the most of your side hustle earnings. Working with a Consolidation Specialist is a great way to get your finances on track and could even lower your monthly payment!
*Please Note: This blog does not substitute professional advice from a financial advisor or tax preparer. We aren’t qualified to make final decisions about your finances or taxes. The information, content, and tools referenced provided in this blog should be used for education purposes only.