3 Tips to Overcome Tax Anxiety

I received my 1099 in the mail a few days ago, and it reminded me just how much I'm not looking forward to preparing my taxes this year. I'm in the habit of always preparing my own taxes, and am completely comfortable with it. That's not the problem. My fear is that I will owe money on income tax. That has me overly anxious about this upcoming filing. This is the first year where I have worked as a contractor all year long. Many of you have been doing this for years, but I'm just getting started.

The truth is - any anxiety I have is my own fault. That's right - I brought it all upon myself. Someone wise told me that the first step to overcoming a problem is admitting that you have a problem. Well, there. I have a problem that keeps me awake at night. It keeps me from focusing on being my best each day. I tread that ticking clock going for April 17, 2012. Each day I feel that January is passing too quickly.

Here are a few things I plan to implement to overcome tax anxiety:

1. Do something fun. Whenever you start thinking about your taxes, resolve to do something else fun (preferably something that doesn't cost any money). This will relax your mind and (at least temporarily) help re-focus your attention on something more positive.
2. Start organizing your receipts early. When you are prepared, your mind is much more at ease. This also goes back to my point on why schedules are important.
3. Just do it. That's Nike's slogan, but it's also very relevant to everyday life. The more time you spend being anxious about something, the more anxious you become. Get it out of the way so that you can focus your energy on more productive things.

I haven't yet made it to the "do it" stages yet, but I am in the planning stage. While it's true that I should have prepared for tax time much earlier, my mind is much more at ease knowing that things are coming together. 

Have you done your taxes yet? If not, what's stopping you? Anxiety? Procrastination? Something else? How do you plan to overcome tax anxiety?

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2 Words to Start Your Freelancing Career

Photo credit: Jonny Goldstein

You're fired.

That's right - those two little words can catapult you from the "safety" of your cubicle to the unemployment line and possibly onto the verge of freelancing. Is that a bad thing? Heavens no! While it may be unplanned and could send your finances through a temporary whirlwind, you will be able to get back on your feet.

That's right - even if you are unemployed right now and don't feel like you can find another job, you will be able to get back on your feet. The key is to keep yourself busy. Not everyone is meant to be a career freelancer, but even temporary freelancing can help a jobless individual keep their sanity.

Have those two words changed your professional life? Do share!

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3 Tips for Ending Client Relationships

There is a point where all things must come to an end. Maybe you've lost your passion and drive for the work you do and want to switch fields. Maybe you realized that you don't want to freelance anymore. Maybe you're fed up with your client. However you've come to this end point - the biggest thing is - you made the decision to end your working relationships with your current client(s). There's no need to beat yourself up about it. After all, you became a freelancer so that you do get to pick your clients and the projects your work on. If your mind changes, your business can change right along with it.

I've been in both shoes - as the freelancer ending the relationship and as the client who is losing a freelancer. On either side of the equation, this can be a stressful time for both parties - but more specifically for the client. You must remember that your client was counting on you for something. You may be the strings that holds their business together. We're talking about their livelihood - which is no joke.

Knowing that this situation can be particularly difficult to handle - how can you get through it? Keep these three pointers in mind:

1. Don't disappear. Of all the things you can do, don't just disappear into thin air. Give your client the respect they deserve and try to get a reasonable notice (2 weeks or so) so that they can find someone to replace you.
2. Don't forget the final deliverables. Try to write up/update any procedures so that your client can easily pass along your work to the next person.
3. Make recommendations. If you know someone who may be a good fit to step into your role, please let your client know. They will appreciate not needing to invest extra time searching for someone they feel comfortable with.

The most important thing to remember is that you want to make sure that you build a strong list of contacts that can vouch for your work or provide testimonials/references in the future. The quality of your network is even more important as a freelancer than as an employee. Clients will remember how you leave - so make it professional.

What are your tips for ending client relationships?

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I'm Blacked Out Today in Opposition of SOPA and PIPA

Image from http://sopastrike.com/strike/

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I'm Joining the Yakezie Challenge!

I am joining the Yakezie Challenge! The goal: grow this blog to be under 200,000 Alexa Traffic Rank. Here are my stats as of this post's writing:

What's more amazing is the power of the Yakezie network. On January 11 (the day I found Yakezie), here were my stats:

All I did is mention my site in one of the forums and visit a few other Challenger's sites. The motto of the network is "selflessly helping others". I'm amazed at all of the things that have come from this so far, and I'm proud to announce my participation in the challenge. 

I'm pretty busy with business today, so I will post more about Yakezie later on this week, but I wanted to share this with you, and I hope that you all follow in my journey to grow this blog!

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The One Surefire Way to Recoup from Backsliding on Your Goals

Start over.

Too many people waste time worrying about the fact that they didn't meet their goals. They then continue to miss their goals, and in the end, they forget what their goal was to begin with. This is a vicious cycle. At the end of the day, if you didn't meet your goal, don't cry about it. Vow to look forward and don't look back.

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Will You Quit Freelancing in 2012?

I was reading the 12 Must Read Freelancing Predictions for 2012 on Freelance Folder, and what I saw was very troubling. Believe it or not, some of you will quit freelancing in 2012. Some of you will simply give up. I thought about that, and I know that I cannot let that happen. I cannot let you go back to working in a cubicle for a salary. It may seem "safe" right now, but ultimately you are jeopardizing not only your happiness but your ability to make a professional decision.

Let me tell you a story... back in April of 2010, I went to work just like I did on any other day. The difference was when I left work that day, it was a bit earlier than usual. Why? I had been fired. My thing is, I wasn't a puppet, and I would not tolerate being treated like one. I've always felt that I have the right to stand up for what I believe in, and well, not everyone likes that. When you are found to have that spirit of a leader, you will surely be singled out and working in an "At-Will" state, they could say anything to kick me off the payroll. I was still able to draw unemployment, of course, but that was not the point. I actually felt rather defeated. I felt like I failed. Yes, I had my dignity, but I didn't have my job. It almost made me question how much my dignity was worth. The people around me didn't make it much better, as I didn't tend to find myself surrounded by other entrepreneurial people. Everyone else had a 9-5 (aka a "real job"). I had no one to lean on to find out about transitioning into the world of freelancing.,

I had worked as an independent contractor before, but it was a bit scary. So, instead, I applied for job, after job, after job until my knuckles hurt from typing. My full-time job was trying to find a full-time job. In a down economy, that was a recipe for disaster. I was at the mercy of employers who had plenty of other people to pick from -- perhaps and most likely more educated and/or qualified than myself. After all, I had taken a slew of college courses, but to date had only completed a high school diploma. Pay no never mind to the fact that I was expecting to graduate soon. The jobs that did hire me were all sales jobs and all completely out of my element. I've never been a person to enjoy high-pressure sales. I sucked at both jobs.

It was not until August 2010 (4 months later) that I found the perfect opportunity - even though it was an independent contractor position. The good thing about it was, though, that I could work from home around my own schedule. I gave heavy consideration to it and ultimately decided to go with it. I don't regret it for even one moment.

Why do I have no regrets? I love the freedom that comes with it. I have the type of personality where I don't like to be micro-managed (who does like that?) and appreciate having more free-reign in my work. I also was put into greater control of my own earnings. I could take on as much (or as little) work as was available to me. I was given freedom to choose who I work with. I never declined any project, but it was good to know that I did have that freedom.

I want you all to know this freedom. That's why you can't quit freelancing. If anything, I recommend you come up with a plan to quit your day job to freelance. Once you do, the freedom you experience will be amazing. You will be able to set your own schedule and work on your own terms. You will be able to do the work you truly desire. The bottom line is -- you will have choices.

So, stay strong in the fight. Don't be a statistic. As a matter of fact, you can make it one of your SMART goals to continue freelancing at least for the rest of 2012. Once you've done it for a year and given it your best effort with no real results, it may be time to re-evaluate.

What is your plan to make sure that you don't quit freelancing in 2012?

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Current Blog Stats (And Why I'm Sharing)

"We wear the mask that grins and lies, 

    It hides our cheeks and shades our eyes,— 

    This debt we pay to human guile; 

    With torn and bleeding hearts we smile, 

    And mouth with myriad subtleties." (Dunbar)


Image courtesy of the Smithsonian Institution

I refuse to wear a mask on this blog. I will not fake it until I make it because that won't be authentic. Right now, there are not that many visitors to this blog. I haven't made much money at all from it (last time I checked, I think it was $0.14). Yet and still, I refuse to hide.

Showing you my stats will keep me accountable. You (and I) can see where I started and compare it to where I am December 31, 2012. Anything that I achieve, I want you to know that it's possible - even for the average Joann.

Here are my current stats for the past month (December 4, 2011 - January 3, 2012):

As you can see, the stats are definitely nothing to brag about. That's not why they're here. The intent is not to brag. The intent is to show that real people can grow their blogs.

Are you tired of folks who hide behind the mask? Share your stats and let us watch you grow... (be sure to post the link here).

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My SMART Goals for 2012

A few days ago, I discussed the importance of setting SMART goals. I also defined the acronym SMART as specific, measurable, achievable (or attainable), relevant, and timely. Hopefully all of you have outlined your goals and posted them publicly (I still want to see links!).

It's Friday, and I know you're ready to party hard, so without further ado, here are my goals for this year:

1. Start earning at least $500 per month in passive income by the start of the 4th quarter (October 2011). Right now, I work for all of my money. I'm not paid on an hourly basis, but my income is a direct result of my effort each day. I love my work, and I still plan to work, but I also want to start earning money "in my sleep".
2. Post at least 10 comments per working day on new blogs. This allows for new blog discovery and helps others find my blog.
3. Lose at least 50 pounds by December 31, 2012. Like anyone else, I have weight loss goals. These goals have previously been the form of a resolution, but now that I'm announcing something publicly, I should be better on track to reach it.
4. Build an emergency fund of at least $2000. That may seem like chump change to most of you, but as of right now, I don't have any money saved. That would be a major deal for me.
5. Grow this blog to receive at least 5,000 monthly page views. Again, this may seem like a small goal to most,  but I have nowhere near this right now.
6. Grow this blog to have at least 1,000 subscribers. Do you notice a recurring theme here? I think that big things come in small packages. (smile)
7. Post to this blog at least every Monday, Wednesday, and Friday from now on and for the rest of the year. This is a big one. I can remain dedicated to this blog for a short time, but I always end up falling off the metaphorical wagon. This, of course, is important to achieve the two goals before it.

That's it. Seven goals. Well, it's the lucky number seven. I feel like printing this off and posting it on my desk so that I don't have to remind myself to look back on my blog to see my goals. I think I will (once I buy printer ink). *smile*

So, let's hear it...what are your goals for 2012?

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Your Guide to Remaining Productive Even on Non-Productive Tasks

There are two things that are productive in business: serving clients and attracting clients. Everything else is not productive. Many of these tasks don't fall into the category of "counterproductive", but they are not doing anything to grow your business. These non-productive tasks are things like: bookkeeping, filing, reading emails (unless it's an email needed to service a client), shopping for supplies, etc. While these tasks are often necessary, they aren't productive. They aren't going to make you any more money in the long run. So why do freelancers waste their time on such tasks?

Well, most small businesses doesn't start off productive. As a matter of fact, most business owners spend countless hours doing things that don't grow their business. They can run a one or two man show giving up their time to do things themselves instead of paying others. More often than not, they aren't able to afford to pay anyone else to do these things. New business owners are much more "stingy" (for lack of a better term) with their money, and they should be. After all, according to the Small Business Administration, over 50% of small businesses fail within the first five years. The time from launch to maturity of a startup is critical. There must be money available to continually reinvest in the business. If this is spent passing off non-productive tasks, the average small business owner/freelancer can easily find themselves in a bind.

It's simple enough to find someone else to do the work for you, but it's more challenging (and arguably more rewarding) when you find a way to do it yourself. I know what your next question is -- there are only 24 hours in a day. How can I make time for these activities when I should really be growing my business? That's a great question.

The best thing for you to do is to review how you spend your day. That means it's time to start tracking your time. How much time do you actually spend working? Are you spending too much time reading blogs (other than this one), browsing social networking sites, etc.? Once you know how your time is spent, you are then able to figure out where to "trim the fat". If you spend over an hour per day on social networking sites, that is probably too much. Try cutting it down to 30 minutes to see if that will allow you more time to work on those non-productive tasks.

Do you have any other ideas for staying productive while running a small shop?

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SMART Goal Setting for Freelancers

If you haven't already thought about your goals (or resolutions) for the year, now is the time to start. After reading a bit on Pat Flynn's Smart Passive Income blog (which I recommend, in case you don't follow it), I plan to post my 2011 goals to this blog.

One of the biggest keys is that you set SMART goals. What is a SMART goal? Simply put, it's a goal that is Specific, Measurable, Achievable (or Attainable), Relevant, and Timely. You should make sure that any goal you set meets all of these criteria.

Here are a few quick questions you can ask yourself to determine if your goals are SMART enough:

1. Is it specific enough? Would someone who doesn't know anything about me know exactly what this goal is without any help from me? For example, don't say "Learn to do something". Instead, say "Learn to play the guitar".
2. Is it measurable? Can you qualify or quantify this goal? Using the guitar example, you can say something like "Learn to play six rock-and-roll songs on the guitar" instead of just "Learn to play the guitar" as mentioned above.
3. Is it achievable (attainable)? Is it impossible to complete your goal? Very few things are truly impossible, so most goals will meet this criteria.
4. Is it relevant? If you are a musician and learning to play the guitar will better your career, great. If you love music, even better. If you aren't a musician, have no desire to learn music, etc., the goal is not relevant to your professional or personal interests.
5. Is it timely? You have to set a time limit. If you don't, you'll have no way to gauge your success. To wrap up our guitar example, you can say "Learn to play the guitar by September 2012."

I have been using this methodology since 2007 when I started working at my last "real" job. Each year, we were required to set SMART goals. Whether or not we reached these goals was a part of our annual review. Goals setting for freelancers is equally important. However, since you don't get reviews from a boss, it's important to make sure that you can be honest with yourself on whether you met or didn't meet your goals.

I challenge to you, for 2012, to publicly announce your SMART goals on your blog or some other public forum (post the link here, I want to see them!). At the end of the year, you can review your progress, also in some public forum.

So, let's hear (read) it! What are your goals for this year?

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