My Income Will Probably Decrease in 2024, and That's OK. Here's Why

One of the challenges of being a freelance writer is not having a steady income. My earnings could swing considerably from one month to the next if clients pull their projects or if circumstances make it so I have fewer working hours.

Of course, the benefit of being a freelance writer is that the more work I do, the more I get paid. When you're a salaried worker and you have a tough week at the office with long hours, your paycheck doesn't necessarily increase. When I put in more time and do more work, more money lands in my checking account.

Next year, however, I expect to earn less money than I did in 2023. And while that's something I'm okay with, I also do need to plan for it.

Why I expect my income to take a hit

The main reason I expect my income to decrease in the new year is that my kids are involved in more activities now than when they were younger. And now that they're a bit older, signing up for sports teams requires more of a commitment. There are multiple practices during the week and travel games that sometimes have us in the car for an hour each way to participate.

Because my kids' activities are starting to require a bigger time commitment on my part, I expect to have fewer working hours available in the new year. And the less time I have to work, the less money I can anticipate making. It's that simple.

A scenario I'm planning for -- and am really okay with

I won't pretend that I'm jumping for joy over the idea of earning less money in 2024. But I'm okay with it because of the reason for it.

When I had kids, I made a commitment to put them first whenever possible. And since I'm fortunate enough to have a job that gives me the flexibility to work more or less, I owe it to my kids to be there for them and allow them to pursue the activities they work really hard at.

My sixth grader, for example, gets up at 6 a.m. on his own several days a week to run before school. I'm sure he'd rather be sleeping or lounging in his bed playing video games, but instead, he gets up and hits the pavement. So if he's going to put in that effort, how can I not take the time to drive him to his cross country meets?

My husband and I have talked about our finances and this upcoming change, and we may need to make some adjustments to our spending, depending on just how much less I end up earning. One thing we may need to do is spend less on leisure and vacations. As it is, when we go away with our kids, we tend to travel cheaply by driving instead of flying. But we may need to choose our vacation spot more carefully this year if we can't afford to spend as much as we have in the past.

We might also need to assess our general spending and see if there's room to cut back. It might make sense to reduce smaller expenses, like a streaming service we can do without.

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Thankfully, though, my husband and I made a rule long ago that we would only take on major expenses like mortgage and car payments based on his income, since he's the salaried worker. So I'm not worried about a reduction in my income impacting our ability to cover our essential expenses.

Balancing a fluctuating income

If you're someone who works on a freelance basis, there may come a point when you decide to cut back for the sake of being able to use your time for another purpose. In my case, it's being there for my kids. In your case, it might be to pursue a passion you don't get paid for, volunteer, or help an aging family member.

Any time you anticipate a drop in income, it's a good idea to audit your spending and see where there's room to make cuts. But if you plan out your personal finances strategically, you may find that you're able to absorb a hit to your income without having it wreak too much havoc.