The Newsletter

My newsletter, published on the first Sunday of each month, supports seasoned freelancers and independent consultants who want to make sense of their money so that they can blaze a brighter trail at home and work while protecting their family's wealth and happiness.

How three steps can bring your financial power under control

Apr 7, 2024 | PSL Newsletters

Three revealing steps will determine how your money can give you the financial power to live rather than be controlled by it.
Three revealing steps will determine how your money can give you the financial power to live rather than be controlled by it.

Welcome to the Financial Common Sense for Freelancers Newsletter for April 2024. I hope you had a wonderful Easter break, if you celebrated. Easter was early this year, which leaves a good four months before the August holidays and plenty of time to mull over the role of money in your freelance life.

Of the many songs written about money, one of my favourites is the money song from Cabaret. It is performed outrageously by Joel Gray and Liza Minnelli in the 1972 film loosely based on Christopher Isherwood’s book Goodbye to Berlin (in which Sally Bowles is mentioned just once, but once is enough if you get it right, to misquote Mae West).

The song’s refrain is “Money makes the world go around,” a deliberate irony given that neither the Kit Kat Club’s MC (Gray) nor its star performer, Sally Bowles (Minnelli), is wealthy. However, Bowles ridicules the idea of sitting alone in your room. In the title song, she encourages her audience to put down the book and the broom and come to the cabaret to taste the wine, hear the band, and presumably use what financial power they might have.

Money does make the world go round. Even Bowles’ friend Elsie, “with whom she shared four sordid rooms in Chelsea” and who was not what you’d call a “blushing flower”, had to make enough to live by “renting by the hour”.

Your financial power is an ever-present consideration.

Suppose you are a freelancer today in the artistic, literary or media professions (or any other freelance profession, for that matter). In that case, you probably recognise the sentiment about money making the world go round, although your approach probably differs from Sally’s and Elsie’s.

Your financial power influences almost every decision and action you take. Even if you drop into Starbucks for a coffee, you might opt for a short Caffè Latte rather than a grande if money is tight.

But here’s the thing. Money may make the world go around, but if it becomes the centre of your universe, you are in hock to your financial power.

Letting money become the centre of your universe is undoubtedly an issue for the freelancing community today, where financial pressures continue to mount.

  • Your income may be irregular and unpredictable.
  • You are probably worried about retirement and how unprepared you are
  • You may well have got through a lot of your savings to keep afloat during the pandemic
  • You can’t get loans or remortgage because of your freelance status
  • Your clients don’t pay you promptly and put a strain on your cash flow
  • You worry about falling sick or taking holidays, both of which prevent you from working and earning
  • You are not sure where the next assignment is coming from, not helped by the April 2021 changes to IR35 in the UK

Money pressures also make the liminal space between work and home even more challenging to navigate (see my recent post at https://shrtm.nu/vsh).

As an experienced freelancer, you might also be questioning your purpose in life, possibly thinking about making a difference by helping refugees rather than making films. Again, money will influence your thoughts.

But don’t let your financial power shape your universe.

So, how do you solve the issue of financial power, knowing that it makes the world go around but also that making it the centre of your universe will likely damage your spirit, imagination and vitality?

First, know your figures. Work out your income, expenses, assets and liabilities; they will tell you a lot, which is liberating. The exercise will reduce your anxiety around money. Even if your situation turns out to be bad, at least you know where you stand and can take action.

Second, understand your figures. The raw data of your financial statement will provide some clarity, but you can better understand your situation by calculating your key personal financial ratios and understanding their relationships.

Third, read the story behind your figures. Your figures are cold, hard facts. The magic and power of the figures lie in the story behind the figures. Set down the story of how you got here, the story today, and, most importantly, how you will rewrite your story and your numbers going forward.

Your numbers are your story.

This last step is the all-important connection between your life and your money. It enables you to explore the relationship between your financial power and your life and determine how your money can give you the power to live rather than be controlled by it.

During April, I will focus on the power and magic of money and your money story. My Insight posts each Sunday will delve deeper into the three stages of your financial journey, setting out how to make your world round through your money.

References and attributions

Image

Photo by Carl Jorgensen on Unsplash

Audio link

https://audio.com/jeremy_deedes/financial-power/

References

Isherwood, Christopher. Goodbye to Berlin. London, The Hogarth Press, 1939.
Cabaret (1972) Liza Minnelli, Michael York, Joel Grey, Directed by Bob Fosse

Related posts

Master the liminal space between work and home

https://wordsnotdeeds.co.uk/liminal-space/

Discover three ways to deal with the emotional and practical challenges you will meet in the liminal space between home and work

Do you work for meaning or money?

https://wordsnotdeeds.co.uk/meaning-or-money/

Even successful freelancers sometimes wish their businesses provided them with as much meaning in their lives as money.

How to beat financial fear

https://wordsnotdeeds.co.uk/self-image/

Your wealth is a reflection of you, so re-draw your self-image to avoid fear and guilt about your money.

 

About Jeremy Deedes

My name is Jeremy Deedes. I combine financial life planning and life coaching to rewrite your story through your figures, deepen your relationship with money and reorganise your money to achieve your goals.

I help seasoned freelancers make sense of their money so that they can blaze a brighter trail at home and work while protecting their family’s wealth and happiness.

Discover your money maturity score by taking the Money Maturity Quiz at https://shrtm.nu/n2D. It’s free, takes only a few minutes, and you will get your score and recommendations by email immediately.

Then, schedule a free 20-minute call with me using the link below so we can start you on the path to understanding your money and creating a new story to tell your family and friends.

I look forward to hearing from you, and I hope the sun shines for you in April (literally as well as metaphorically).

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so share your thoughts in the comments box below, and thank you for your time and generosity.

What do you think?

Your views are important, and your fellow readers would love to hear your opinion, so share your thoughts in the comments box below, and thank you for your time and generosity.

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