Today I want to talk about something that makes a lot of us uncomfortable: money. Or, more specifically, how easy it is to use money as your sole barometer for success as a freelancer.

This is something that’s been top of mind for me recently (and by “recently” I mean for the past couple of years—especially since having kids).

Case in point: Over the past month or so, a couple of potential projects landed in my inbox. And I found myself thinking about them not through the lens of, “How much money could these earn me?” but rather, “How do these mesh with the work-life balance boundaries I’ve set for myself?”

After years of chasing the “six-figure freelancer” thing when I started my business, considering my quality of life before the size of my bank account felt like a fundamental shift.

But it’s also one that didn’t happen overnight. So, let’s dig a little deeper here—starting with this question: Why is it so tempting (and easy) to measure your freelance success using only your income?

• Money is quantifiable and tangible: You can look at your financial records and see if you earned more this month (or year) than last. If so? You conclude that your business is doing better than it was. You’re moving in the right direction. Without a performance development plan, a defined career path, or a traditional boss to offer frequent praise, your income becomes your north star.
   
• Money is important: Listen, I’m not running my business for a good time. I need to help pay our mortgage, childcare expenses, and the bulk boxes of expensive, organic granola bars my kids won’t stop eating. It’s tough to untangle my work from my earnings when the earnings are the very reason I’m doing the work.

But while money is an easy and intuitive default metric when evaluating your business or setting goals, it’s not always a helpful or reliable one.

Part of that is because it doesn’t allow for much nuance. Sure, maybe you earned less this month than last month. But did you take a vacation? Or prioritize other business development activities ahead of client work? Or wrap up a major project? Or has the market been super weird in general (something I know many of us are feeling right now)?

All of those factors—and hundreds more—can impact your earnings without being surefire signs that your business is crashing and burning.

Additionally, I know firsthand that using money as your only benchmark can quickly lead to burnout. You stop evaluating clients and projects based on how they fit in with your priorities and values and instead think, “…but it’s more money.”

During my highest-earning year of my freelance career, my business did a little over $300,000 in gross revenue—eye-popping numbers I never, ever, ever thought I’d achieve.

Was the money nice? Absolutely. Was I stressed, spread thin, exhausted, and irritable with the people I love? Also absolutely. 

In the years since, I earn less (but still more than what I need to comfortably cover my expenses). And while my business looks less “successful” if you look strictly at my profit and loss statement, I feel way more successful than I did when I was sending huge invoices.

Of course, money plays a role in the overall health and sustainability of your business—and I’m not saying to ignore it entirely and build your business based on vibes, as the kids say.

Instead, I recommend broadening your view to look not just at your numbers, but also less tangible milestones and metrics like:

• Your flexibility and work-life balance
• Your relationships with clients and other freelancers
• Your passion and enthusiasm for your work

My fellow freelance writer friend, Bani Kaur, shared some of her non-monetary metrics on LinkedIn this week. They provide some more great inspiration if you need it.

And finally, there’s one more thing that’s helped me turn down the relentless “money, money, money, money, money” voice in my head (at least a little bit): setting an income cap.

Sure, people talk a lot about income goals. But once your business is in a fairly stable place, an income cap helps you get what you need out of your work—and then pump the brakes.

Crunch your numbers to figure out what you need to earn (not just bring in, but take home) from your business every month.

What do you need to cover your living costs, business expenses, retirement savings, time off, and all of the other aspects of being a human that have a price tag attached? What do you need on top of that for “fun” money or to feel like your business is providing for you in the way you want (and not just need)?

Once you have that magic number, use it as your compass when accepting and booking work. When you’ve hit it? Start pushing work into the next month.

It’s not a perfect system—and some time periods might inspire you to reduce or raise that number accordingly (hi, hello we need a new furnace).

But knowing what you need is majorly helpful when it comes to stopping yourself from chasing excess (because, let’s face it, more money never feels like a bad thing in the heat of the moment).

Whew, okay. I know money is one of those topics that’s nuanced, personal, and often a little icky feeling. But I hope this month’s newsletter has given you a little bit of permission and inspiration to think outside your bank account (especially if the current market is inspiring plenty of self-doubt for you).

With all of that said, I’ll leave you with a little homework. Figure out your answers to the following:

• What freelance goals can you set for yourself that have nothing to do with money?
   
• What amount of money do you actually need/want to take home from your freelance business each month (or year, if you prefer to think that way)?

Find your answers and then use them as your guide, my friend. ❤️