"Viruses" and "Worms" are forms of computer malware that replicate themselves, spreading as far and wide… [more]
Colors are everywhere and their impact on us shouldn't be under-estimated. Our nervous system requires… [more]
Even in the business world, what goes up sometimes comes down, and if the company is big, the sound of… [more]
Credit: BigStockPhoto.com
Do you long to be your own boss? Would you love to work from home, at least most of the time? Would you like to be in control of your own financial destiny rather than constantly making a buck for someone else? If so, the idea of a home-based business might appeal to you.
{
Credit: BigStockPhoto.com
Computers, no matter what kind you prefer to use, have become an integral part of not only business but our daily lives. Still, no matter how much technology advances nothing seems to overcome the temperamental nature of these machines.
Oh, you know what I mean — the blue screen of death (BSOD) Windows users have come to fear, the random power outages that come just as you’re about to save something but haven’t quite yet, or data that seems to go missing or become inaccessible like it’s playing a game of hide-and-go-seek right before your important meeting.
But it’s not a “game.” It’s war. And fortunately it’s a war you can win. Here are some tips to give you the edge, no matter what stunt your computer (or anything affecting it) pulls.
{What if you could grab 5-10 minutes of laser-focused attention here and there throughout the day? Would it help you be more effective? I think so. Micro-Focusing is something I’ve been using lately to try to grab a little bit more time each day that I might not be able to access otherwise. I got the idea from Steve Slaunwhite, who wrote about a similar concept called the 50-minute focus in his book The Wealthy Freelancer.
The idea is to grab little blocks of time, about 5-10 minutes whenever you can to focus on the important tasks you need to complete. It’s about the same amount of time it takes to grab a cup of coffee or run to the restroom. Everyone has it, and using it this way is a great way to successfully navigate life’s daily interruptions.
While nothing is better than being able to fully focus on your work for extended time periods, those blocks of time seem harder and harder to come by with all the daily distractions of client demands, email, phone and family responsibilities. And once your time is gone, it’s gone. It’s the most important non-renewable resource we have.
{Continue Reading 0 comments }General Business, Internet and Online
Today’s mobile devices and an always-on internet connection make it truly possible to work anytime, anywhere you want. But it’s also necessary to have the type of work that’s portable. If, like most traditional office workers, you spend the majority of your day using a word processor, spreadsheet or slide program plus occasionally surfing the web, there’s no reason you can’t periodically break free from your cubicle and work in the wide open world.
While I do most of my work from a cozy home office, I’ve got a mobile setup that gives me true flexibility.In this post I’ll show you the minimum kit necessary to work anywhere you want.
For example, I’m writing this article on my iPhone in my favorite coffee shop using Evernote, a ubiquitous note taking tool that will immediately sync my Evernote draft with my desktop as soon as I’m done. Pretty crazy, huh? Evernote syncs automatically across multiple devices – my iPhone, my laptop and the web. So I’ll be able to edit my article later wherever it suits me. You can signup for a free Evernote account at http://evernote.com.
Here’s a list of standard mobile office tools that make working anytime, anywhere a snap:
{Continue Reading 0 comments }General Business, Internet and Online, Recession
Many freelancers don’t know what’s happening tomorrow from an income standpoint, much less how to plan for retirement. But despite the everyday realities of freelance life, it’s important to plan for your future today, and the best way to do that is to establish an effective retirement program. So how can freelancers setup a regular savings program when their income varies from month to month?
When I started my freelance business almost 4 years ago, my husband and I decided that I would temporarily suspend saving for retirement for exactly that reason. But now it’s four years later and I realize that 1) it’s time for me to resume saving again and 2) I wish I had never stopped, but I was afraid at the time.
Back when I had a full-time corporate job, my retirement savings was automatically deducted from my paycheck every two weeks. We never even felt it and every quarter we were thrilled to receive a broker statement showing our growing savings.
Freelancers don’t have the same benefits as people with “real jobs” such as 401k plans or deferred compensation. If you’re self-employed, it’s totally up to you to make savings as important as completing client work. But since our income is so variable, it can be risky to put x dollars away every month when you might not know you’ll need the cash to fix unexpected car trouble, pay for your kid’s braces or some other unplanned expense.
In “The Money Book For Freelancers, Part-Timers, and The Self-Employed”, authors Joseph D’Agnese and Denise Kiernan suggest that freelancers should save at least 10% of whatever comes in using an online savings account such as ING Direct or Bank of America. They advise saving even more than that if possible, spreading it out across what they call the “Holy Trinity” of an emergency fund, tax fund, and a retirement fund.
While the authors recognize that saving 10% might be a little hard at first, the most important thing is to just start with whatever amount you can put away. The idea is to get in the habit of paying yourself first. As you get used to the process, contribute more and more over time until you reach your regular savings contribution goal.
After reading the book I was inspired to give it a try, and so far it’s working pretty well. As soon as I deposit a client check I immediately deduct 10% from my online checking account to my online savings account. It’s not automated, but it works and I’m really starting to develop the healthy habit of paying myself first.
As your savings begin to accrue, you’ll want to setup a retirement investment account if you haven’t done so already. For most freelancers a SEP (Simplified Employee Pension plan) is the way to go. A SEP is very similar to a 401k, in that it allows you to shelter a percentage of your earnings each year from income taxes. It can even be a better deal than a 401k, since you can shelter up to 20% of your net income each year up to a maximum of $49,000. But be sure and consult a qualified finance professional before you invest.
It is absolutely possible for a freelancer to save for retirement. Like anything else worthwhile, it takes upfront planning and regular attention. Setup an online savings account today and watch your retirement start growing.
You may also enjoy Guide to Financial Planning and How to Budget.
{Continue Reading 0 comments }General Business, Internet and Online
These days it seems harder than ever to get things done. Our always-on, emailing, texting, meeting and phoning society creates a world of distractions that’s often difficult to navigate. Thank goodness there are some online tools that actually make it possible to work smarter, not harder. Here are my 5 favorites:
1. Evernote
Evernote is a remarkable online tool that helps me remember everything – article ideas, to-dos, web clippings, all sorts of stuff. It even captures text within images and makes them searchable. I’m a big fan of David Allen’s Getting Things Done method, and Evernote is my all-in-one GTD reference tool.
Evernote truly feels like an extension of my brain, because I can access it from the web, my phone, or my computer. I used to carry around a pad and pen with me everywhere. While I still sometimes use my paper based tools, now I use my phone to capture ideas immediately that I can expand on later using the computer.
I use Evernote to save ideas, remember things I see, and note things I like. And since it’s web-based, I can view all these notes on any computer or whatever web-enabled device is available. Whether I’m typing a text note, clipping a web page, grabbing screenshots, or taking a photo, Evernote keeps it all searchable, safe and secure. Because Evernote syncs across the web, assigned devices and your computer, there’s always a handy backup immediately available.
Best of all Evernote is a free service. But if you have a ton of ideas, you can upgrade to the paid version for just $5 per month. http://evernote.com
2. Jott Assistant
Jott Assistant is a speech-to-text program that is available for a monthly subscription fee starting at $3.95 a month. The way it works is you simply call Jott, tell it who you want to contact (a single pre-assigned person or group), leave your message and voila! Your message is converted to text and emailed to your contacts.
I depend on Jott to help me remember things when I’m traveling. It integrates beautifully with Evernote, so if I come up with something when my hands aren’t free to type, I can just call Jott and send the thought to Evernote for later access.
I use Jott mostly for reminders. For example, if I forgot to pickup something at the grocery store and want to remember it later, I’ll call Jott and say “Pickup bananas”. Jott will email me the reminder immediately. If I want, I can set another reminder to email or text me the next time I’m out and about.
Along those lines, sometimes you remember stuff but can’t act on it until later, and that’s when Jott is a true lifesaver. Like when you remember that you need to get tickets for the community fundraiser the night before the deadline at 10:30 p.m. when you can’t do anything about it. Simply call Jott, say “Buy fundraiser tickets”, and set a reminder for the following day during a time when you can act on it.
Jott Assistant can really do wonders for your productivity. The company also offers plans for text-based voicemail and salesforce.com Check it out at http://jott.com
3. Outright
Outright is a free online tool that has greatly reduced the time I used to spend on bookkeeping. I use it to track income, expenses and run profit/loss reports. I used to keep all my accounting information in a spreadsheet, but that became tedious and difficult when I started getting more clients and had to manually copy and paste invoice data from one place to another.
Outright makes it easy to import data from other online accounts to put your bookkeeping on autopilot and prepare taxes. Easy-to-run reports give you visibility into your profit and loss, income, and expenses. It’s perfect for freelancers, independent contractors, or anyone who files a Schedule C income tax form.
For example, since Outright integrates with Freshbooks, my online invoicing tool, it automatically updates whenever I log a payment into Freshbooks. I simply enter expenses as they come in and Outright does all the math. And since you can assign categories to your expenses it makes preparing taxes so much easier. You can also export your data at any time to .CSV and other spreadsheet-friendly formats. Give it a try and automate your bookkeeping.
4. Basecamp
The folks at 37Signals hit a home run when they made Basecamp for their own project management needs back in 2005. This product is an excellent must-have tool for tracking client work and personal projects. Unlike traditional project management tools like Microsoft Project that use Gaannt charts, Basecamp is both a project management and collaboration tool that tracks all communication and documents around a given project, so it’s easy to see where things stand at any given moment.
The Basecamp interface is very simple and intuitive to use. Using a combination of Messages, Files, To-Do’s, and a special utility called “Writeboards”, the Overview section shows you everything that’s happened on your project in reverse chronological order. You can click into any item to view details, and all messages and to-dos have the ability for other team members to comment on them.
Sign up for a free account to try it out, and then choose from a variety of monthly subscription plans based on the number of projects you need. Right now I use the Personal Plan at $12 a month, which allows me to track up to 3 projects. When things get busier I upgrade to the Basic Plan at $24 a month, which gives me room for up to 15 projects. I really like the flexibility to upgrade/downgrade my plans depending on my current workload.
Basecamp also provides the ability to brand projects with your company logo and colors, which can help you show a more professional face to clients. No wonder some of the world’s biggest companies and agencies use it, including Adidas, National Geographic, and Ogilvy. It just works.
5. Highrise
Highrise is another product from 37Signals that brings CRM (Customer Relationship Management) to freelancers and other solo professionals/small businesses. This online tool helps you track sales calls and all conversations that lead up to closing a deal. It helps you remember who you talked to, what was said, and when to follow up.
Highrise is built around the concept of Contacts and all the ways you can interact with them. For example, yesterday I received a call to bid on a new project. I entered the contact’s name and information into Highrise and created a “Deal” to track the sales process.
Upon logging into Highrise, I entered a description of the pending deal, what I expect to earn if it closes, and all the notes from our phone conversation. I also scheduled a tickler email to notify me on Friday if I haven’t heard a decision yet. This is incredibly useful when you start tracking multiple contacts, conversations and deals over time. There’s no need to remember anything – you just check your notes in Highrise or it emails you with the next step in the sales cycle.
Like Basecamp, you can try Highrise for free and then signup for a variety of monthly subscriptions plans. Give it a go at http://highrisehq.com
These 5 online tools have made it possible for me to work more effectively with multiple clients, get work done and stay focused. See if they can help you, too, and let us know what you think in the comments.
{
We’re too connected. Many of us have laptops and internet-equipped cell phones so that we’re always able to stay in touch. We like to think this makes us more productive, but I’m beginning to realize that’s a myth. Checking your email every minute of the day doesn’t make you more productive; in fact, it robs you of your productivity. This obsession with making sure you get email the second it hits your inbox can become a major distraction that prevents you from getting work done.
Look, I admit it. I’m one of those people who has my Gmail open the entire time I’m working. I’m always looking at the tab to make sure a new message hasn’t arrived. And if a new message does pop up in my inbox, I’ll stop to see what it is. If it’s not spam, I’ll take the time to read it and respond if necessary. Of course, I receive emails all day long, both personal and for work, so this really does take up quite a bit of time.
But loss of productivity isn’t the only negative effect of checking email too often. Honestly, being plugged in 24/7 starts to get a little stressful after a while. It’s like you never get a break from it. I mean, it was only about a year ago that I didn’t have a phone with internet connectivity, but now that I have my iPhone, I suddenly feel like I have an obligation to constantly stay in the conversation. I’m sure I’m not alone, and I think that if left unchecked, this could lead to burnout.
What’s the solution? Here are some ideas I’ve come up with.
How often do you check your email?
{
Are you looking for a way to boost your productivity? There are all sorts of productivity tools and tips available. Many of them really are helpful, but some are myths. And if you buy into these myths, your productivity will actually decrease.
Here are the top 5 productivity myths. Add your own myths by leaving a comment.
At the end of the day, you have to want to be more productive. You need to be motivated, and you need to want to achieve certain goals. If you lack that desire to improve, no system will help you improve your productivity. It’s all up to you!
What have you done to maximize your productivity? Share your best tips by leaving a comment
{It’s tax time again. As freelancers, April 15th one of four big days we need to pay attention to from a business perspective. Why four? Because unlike our corporate counterparts, freelancers need to pay estimated taxes on a quarterly basis. If you’re only just now getting your freelance tax act together, this article will show you 5 last-minute freelance tax deductions you may not have considered yet.
Disclaimer: These are suggestions based on my three and a half years as a successful freelance writer and web consultant. Please consult a tax professional for your specific tax needs.
Tip #1: Books and Subscriptions
If you work as a writer, designer or other creative professional, all those books and subscriptions you bought to help keep your skills current are tax deductible. These should go on your Schedule C under Other Expenses and itemized in part V.
Tip #2 Mileage For Client Visits
If you work from home but occasionally need to visit clients at their place of business, you can deduct 55 cents per mile in 2009, plus any costs for parking and tolls. Make sure you keep a detailed journal of all business-related mileage plus a record of the overall annual mileage you put on your vehicle.
Tip #3 Shelter Your Profit With A SEP Retirement Plan
A SEP (Simplified Employee Pension) plan is very similar to a traditional IRA, and a great way for freelancers to shelter 20% of schedule C net income up to a maximum of $49,000 in 2009. If you haven’t opened an account yet, you have until April 15th to do so. Once in place, you or your representative will be responsible for directing investments and maximizing contributions.
Tip #4 Deductions For Internet Access and Other Communications
Many home-based workers use a dedicated cable or DSL internet connection for business purposes, while others use a household service that is bundled with household telephone and television services. Whichever you use, make sure to deduct the portion used for business. Don’t forget to include monthly data plans for smart phones or backup networks such as laptop network cards.
Tip #5 Home Office Deduction
If you work from home as a freelancer, you may be able to deduct expenses related to the business use of your home. These expenses can include mortgage interest, insurance, utilities, repairs and depreciation. The home office deduction isn’t just for homeowners – you can take advantage of it even if you rent.
To qualify, make sure you pass these two requirements: 1) You must regularly use part of your home exclusively for conducting business, and 2) you must be able to demonstrate that your home is used as your principal place of business. Most home office deductions are based on the percentage of your home used for business, so you’ll need to figure out the amount of space dedicated to your business. For example, if your home office takes up 250 square feet of a 2500 square foot home, you can deduct 10% of all qualified costs. But be careful with depreciation, as you’ll need to recapture it upon the sale of your home.
Pay Your Taxes, But Don’t Pay More Than You Have To
Deductions can mean the difference between profit or loss in your small business for a given tax year. The IRS knows you’re in business to make money, so if you show a loss over multiple years they will classify your business as a hobby rather than a going concern. Take your deductions honestly, but don’t pay more taxes than you have to.
{Continue Reading 0 comments }Banking, Economy, Finance, General Business
Many freelancers live a feast-or-famine lifestyle, meaning it’s hard to turn away projects even when we’re already booked up, especially in tough economic times. This often negatively impacts our relationships with family and friends since it always seems like we’re working.
One thing that’s really helped me strike a better balance between my work hours and personal time is learning to treat my non-work activities as if they are also client projects. When I do this consistently, I am much better at deflecting the all-work-all-the-time nature of freelancing.
You’d think I’d naturally always put myself and my family first, but it’s hard when client demands and deadlines are looming. Forcing myself to give equal weight to my off-hours responsibilities gives me a solid tool to manage both better.
Know Why You Are Freelancing
How do you do this? Take some time to reflect on why you chose a freelance career over a traditional 9-5 job and write it down. For me, I wanted to be home with my daughter after school and easily available if she’s ever sick during the school day. So for example, if clients ask for a meeting that conflicts with a scheduled doctor appointment, I simply tell them I already have a meeting at that time. So far it has never been a problem. Meetings are meetings.
Keep A Solid Schedule
Besides being flexible for my family, I want to make time for personal projects, socializing and daily exercise. This may sound counter-intuitive, but being flexible as a freelancer takes careful planning. One thing that helps me stay on track is keeping a solid schedule.
I use my computer calendar to book several 1-hour appointments to work on client assignments, personal projects, exercise and even after school activities. During these scheduled sessions I turn off my phone, email, internet, and any other distractions so I can focus on the moment. By actually paying attention to my schedule, things actually get done. Of course there are times I need to move things around, but those are the exception rather than the rule.
Make Room For The Unexpected
A critical aspect of keeping a solid schedule is not scheduling yourself with back-to-back appointments throughout the whole day. You have to have open slots in your calendar to deal with the unexpected. That’s why I rarely book work sessions for more than one hour at a time. Make room for the unexpected and it won’t take you by surprise as often.
Learn To Say No
Achieving a healthy freelance lifestyle is really about valuing yourself and your time. And that means learning to say no on occasion. When an unexpected client demand or social event pops up, you have to really ask yourself if it is worth adding to your already full plate. You only have so many hours in a day, and learning to say no politely with confidence will help you guard your precious time.
Embrace Responsibility and Accept Your Freedom
When you’re a freelancer, you’re responsible for everything. No boss is going to tell you what to do. Many people in the corporate world picture freelancers working in their PJ’s and watching TV. While many of us do that on occasion (I certainly have!), believe me it’s not the norm. Wasted time is wasted opportunity. To really accept your freedom you need to embrace and accept your personal responsibility for everything related to your freelance business.
Relax, This Is Your Life
So how can you relax with all this responsibility? It’s easy. By adopting these strategies you’ll be naturally more relaxed. You won’t have as many conflicts with work/family issues, you’ll be able to live more in the moment, and best of all, you’ll enjoy the success you’ve worked so hard to achieve.
{
