The M word :-@

The Berry/Brewer girls over at Freelance Parent want us to talk about that dirty word - Money. As in how much do freelancers really earn.

I touched on this here back in May but it's time to spill the beans - bearing in mind I am currently very, very, part time the figure that I expect my accountant to come up with at our meeting next week is around £10,000 - which works out to £833 a month (and seeing as I recently worked out I need £800 a month to pay my share of the bills that's just about right).

Since May I have been making positive efforts to increase my work load and my pay rate so I'm hoping for an increase next year - especially as I will be less part-time in 2009.

So, no, I won't earn my fortune freelancing (at least not in publishing) but being my own boss is priceless ...

Late Payment Charges

(Image from freeimages.co.uk)

The time has come to get serious with one of my clients. For the second week running I've received an email asking me to be understanding as they can't pay my invoice due to 'insufficient funds' (a phrase I'm about to hear from my bank).

The invoice isn't for a great deal but 6 weeks ago when I completed the job and raised the invoice I'd been working long hours to get the project finished within a tight time frame (I had to turn it around in 5 days).

At a colleague's advice I added the following to the bottom of my invoices about 18 months ago:

Payment within 30 days please.
I reserve the right to claim statutory interest at 8% above the Bank of England Base Rate from the date the debt becomes overdue in accordance with the Late Payment of Commercial Debts (Interest) Act 1998 and to claim an additional sum for pursuing the debt as provided for by the Late Payment of Commercial Debts Regulations 2002.

Usually referring to this is enough to ensure that timely payment is made but not in this case so I'm having to follow through for the first time.

There are detailed instructions on how to calculate the interest bit here. At the moment it is 13% of the amount owed, divided by 365 days, multiplied by the number of days overdue - which doesn't look like much really.

But I can also claim compensation arising out of late payment £40 (more is due if the original invoice is over £1000). Which should just about cover any charges by my bank due to insufficient funds.

I will let you know how I get on with this client - they are usually quite good and at least they have let me know the situation rather than hoping I don't notice.



I'm assuming there is similar legislation in other parts of the world - do you find that small businesses or sole proprietors tend to be taken advantage of by larger companies in this way?

Motivation's what I need

I've definitely left the holiday feeling behind with an urgent and taxing job during my first week back at my desk.

Since then though, well lets say I need a good swift kick up the proverbial. It may be that there was three weeks worth of Sky+ to watch (and that the box kept breaking down as it doesn't seem to be able to cope with being more than 40% full) or just the first signs of Spring but I just keep finding that the day has passed and I've done virtually nothing on the work front). I can't even say I've been doing much on the home front either - the dust that we left at the end of January is still evident (though if the in-laws decide that they are coming for Easter after all I'll have to get myself into gear on that too).



My usual motivation is money or lack of it and that should be the case here - bills to pay at the end of the month and insufficient funds to clear them. So what could it be? - wanting to be back on holiday? no. More pressing social and family matters? no. Boredom? hmm, maybe.



As much as I moaned about my client from another planet their project was the last one I worked on before I went away and another from them was the first one when I came back. It was all high pressure and confusion, frustration and talking at cross purposes - in short a bit like my old in-house job.



But the time has come to give myself a serious talking to. If work was always like that I'd have a serious burn out (been there, done that and got the t-shirt) or I'd blow my client relations by actually saying the things I'm thinking and blogging about. The 'boring' stuff is my bread and butter and something interesting is always waiting in the wings :-) Obviously my timing is as wrong as ever - as the preschooler is now out of nursery for the Easter holidays!



I'd be interested to know how everyone else pulls themselves out of a work rut.