Budgeting as a freelancer in the film and TV industry: A 10-step guide

Freelance trainer David Thomas shares his top 10 tips to help creative freelancers manage their finances with more confidence and clarity.

1. Start with your spending habits

When people think about their finances, they often focus on their income first, using that as the basis to work out how much they can spend. For freelancers, this doesn’t work when your income is so unpredictable. So, start by looking at your spending needs, thinking about your personal relationship with money and how you can control your spending. For freelancers, it’s much easier than controlling your income. 

2. Run a detailed spending diary for one month

Write down everything you spend in detail. You can use a small notebook or just make notes in your phone; you don’t need to use an app for this. Itemise your supermarket shops too as this will give you a detailed picture of where all your money goes, whether it’s bananas, beer, or beauty products. 

3. Don’t ignore the small stuff 

Small amounts add up. £5 per weekday is the equivalent of £1,300 per year. Sometimes we spend large amounts a little at a time, and we don’t even realise we’re doing it. Break through that so that you’re making your purchases active rather than passive. 

4. Create a monthly budget 

Once you’ve done a spending diary and understand your habits, set typical monthly budgets for every part of your life. Break the categories down into rent/​mortgage, food for cooking, eating out, etc. 

Don’t forget to budget for activities that keep you mentally and physically fit too. You need to keep funding those, particularly if they make you happy. 

Try the MoneyHelper Budget Planner for an easy to use tool that helps you track your spending and manage your money each month 

5. Research typical freelance rates 

There are typical rates for every job a freelancer does. Find out what people are normally paid for your job role. If you’re new to freelancing, it’s important that you ask around and use the BECTU rate cards to get a feeling for normal pay rates: Bectu Rates Card

6. Work out how many days you need to earn to cover your monthly spending

Now you know two important figures: your monthly spending budget and the normal rate you can expect to be paid. Use these figures to set yourself a target number of days you would need to earn in a month to cover your annual spending target. 

7. Plan for seasonal gaps 

Freelancers don’t earn all the time, but there is usually an annual pattern. In film and TV production, many job roles don’t get work in the first months of the year. You need to know the number of months per year your job role can expect to earn. In an earning month you need to earn more than you need for that month and not spend the extra. The extra days of earning need to be put aside to cover the months when you can’t earn. Download a free and simple spreadsheet from my website David Thomas Media, which does all these calculations for you. 

8. Find ways to hide savings from yourself

Some people find it hard to stop themselves spending money they have. Here are some ways people use to avoid temptation: use the features on your bank account to move money automatically in to a separate pot (digital banks like Starling and Monzo are particularly slick at this), move a percentage of any income into a different bank account which you don’t use every day, give your money to a trusted friend or family member to look after for you. I’ve met people who use all these methods. Find a method that works for you. 

9. Use your figures to run a freelance cash flow planner

The financial future can seem like a mist in front of a freelancer’s eyes. A cash flow planner is a tool that cuts through that mist and helps you to not run out of cash over the next 12 months. It works by asking you to guess what might happen with income and spending every month for the next year, using rough figures. It uses that information to show how much money would be left at the end of each month. Try the free cash flow planner and view a video explainer from David Thomas Media.

10. Face your finances head-on 

When money is tight, we often feel like hiding from our finances. But this is exactly the time to look them in the eye. Use resources on this website to get things under control and set yourself a plan. 

If you’re not sure where to start, call the Film and TV Charity Support Line on 0800 054 0000 or explore our range of tools and guidance to help you manage your finances.