Get Paid What You’re Worth: Smart Money Moves for Freelance Designers

From One Designer to Another: My Journey to Getting Paid Right

So, you’re dreaming about jumping into freelance designing full-time? I totally get why because it’s tempting, right? You call the shots on projects, decide how much you’re worth, and hey, maybe even work with sand between your toes someday. But let’s keep it real: it’s not all smooth sailing. There’s a bunch of stuff behind the curtain that can trip you up if you’re not ready.

Here’s the truth—freelancing isn’t just about delivering designs. You’re juggling a million things such as chasing clients, sorting bills, tracking expenses and sometimes even calming the client’s freakouts. It’s a lot to handle, and if you’re not smart about it, the paperwork and emails can swallow your whole day.

Pricing: Get Paid What You Deserve

Back when I started, I went with hourly rates. Felt like a safety net, you know, getting paid for every second I put in. But here’s the thing, hourly work can screw you over if you’re not careful. You might end up grinding longer for peanuts

Then there’s taxes you have to pay. Yes, freelancing means you’re the one doing the math and cutting the check. Could be 20-30% extra depending on where you’re living. Let’s say 25%, that’s another 30k. Now you’re looking at 150 grand total.

Next, figure out how many hours you can really charge for. No way you’re billing 40 hours a week, every week. Life happens so include time off, sick days, and endless email threads in your plan. Maybe you’ve got 1,500 billable hours a year

Simple breakdown: 150k ÷ 1,500 hours? That’s a clean hundred an hour. That’s your solid starting point. Peek at what other designers nearby are asking too, just to stay in the game.

👀What about charging by the job? That’s golden if you’re quick. Say a client wants a website done, and you estimate around 20 hours. At 100 an hour, that’s 2 grand. Finish it in 15 hours instead? You’re still earning the full amount, which means more cash per hour in your pocket, around $133. Not bad,right?

But be very careful if the project takes longer than expected, you’re stuck with that fixed price. Make sure to clarify exactly what they need from the start, and add a little extra room for the unexpected.

🤔When to Pick What:

-Charging by the hour makes sense when the scope’s unclear or if you’re still new to the game.
-Project fees are perfect when you’ve got your workflow down and the client knows exactly what they want.

Time to Bump Up Your Rates?

Discussing Fees with Clients (Keeping It Comfortable)

When they ask what you charge: Don’t impulsively state a price. Say something like, “My price comes from years of grinding and results I’ve pulled off for organizations like you and designs that turn heads and generate big sales.”

For late payers: Stay chill but drop them a message saying “Quick reminder about that invoice from last week, let me know if you need me to resend it.”

Accounting: Run It Like a Real Gig
Sure, accounting’s not the fun part, but trust me….it’s crucial. Handle it right, and your freelance life gets way smoother.

Money Moves That Work

• Split Your Cash: Open a separate bank account just for your freelance income. It keeps your books cleaner and your tax headaches smaller.
• Split Your Cash: Open a separate bank account just for your freelance income. It keeps your books cleaner and your tax headaches smaller.
• Choose Smarter Payment Tools: Avoid using personal apps like Venmo. I moved away from PayPal’s high fees and started using platforms like Hopscotch and Wise—faster transfers and zero extra charges

Keep the Cash Flowing!

Protect your wallet from slow-paying clients. Here’s your game plan:

• Send that invoice the second you’re done: Bill quickly. No need to wait a day or two for payment. Clients can’t pay what they haven’t seen. The sooner it hits their inbox, the sooner the clock starts ticking. Plus, it shows you mean business and keeps your workflow sharp.
• Set expectations early: Include payment terms right in your proposal or contract. Let them know upfront: “Invoices due in 7 days,” or whatever works for you. It cuts down on awkward follow-ups and keeps everyone on the same page

• Add a late fee clause: Nothing too scary—just a small line to remind them. Something like, “A 5% late fee applies after 10 days.” It’s not about being harsh; it’s about getting paid on time

• Automate reminders: Use invoicing tools that send them firm reminders when payment’s due. That way, you’re not chasing people down. It’s all handled while you keep creating

Handling Taxes Without the Headache

• Log Every Penny: I know its quite hectic when you are doing designing, learning, client hunting as well as spending at the same time but try to track your income and who paid what and when. Use apps or even good old spreadsheets, it’ll make your tax prep much smoother when it’s time to file.
• Set Aside Money for Taxes: A rule of thumb is to save around 25–30% of your earnings for taxes. While it might feel like a big chunk, it’s better than scrambling to find the cash when the tax bill comes knocking. Automate this if possible, by setting up a separate account for taxes so it’s out of sight and out of mind.

• Always keep Your Receipts: Every penny you spend on business expenses like software subscriptions, new gear, or even your internet bill, could be deducted from your taxable income. So, save those receipts! They’re your ticket to lowering your tax bill, so don’t just through them. A simple receipt management app can keep this organized.
• Don’t Wait Till the Last Minute: Leave yourself plenty of time to file. Procrastination won’t do you any favors. If you’re feeling overwhelmed, consider filing an extension, but be aware that doesn’t mean you’re off the hook for paying any owed taxes. It just gives you more time to file the paperwork

Invoicing That Doesn’t Suck

Chasing payments is the last thing we all want to do after finishing a solid project. But if your invoicing game is very sluggish, you’re just asking for delays, confusion, and worst of all—unpaid work. Getting paid should be the smoothest part of the whole deal. But What makes a good invoicing tool that will keep your cash flowing?

Set It and Forget It: Freelance Edition

Make use of:

• Invoicing Apps to Auto-send bills.
• Payment Systems: for lock in regular gigs.
• Client Templates: Smooth out the welcome.

💡Bonus Tip: Standardize your offerings. A logo package with a fixed price and scope keeps expectations clear and saves you from extra emails.

Grow Your Hustle

In the beginning, you will probably be freelancing without a plan. That’s like designing without a brief and seems messy and just all over the place. Set some goals and refine as you move ahead.

🎯Set Milestones: Whether it’s hitting 10k/month or acquiring that dream client, give your hustle a clear aim.

🌟Keep Leveling Up: Try new approaches,stick with what works, and don’t stress over the stuff that flops. Afterall, it’s just part of the game.

Ready to Roll?

You’ve nailed the design game already. Now its time to sharpen the business side of yours. Start small: open a separate work account, streamline your workflow, or finally charge what you’re worth. Each step brings you closer to the freelance life on your terms.

Tired of freelancing in the shadows? Get seen. Get hired and Get paid what you’re worth. Join Readymadework and turn your portfolio into profit.