I’ve mentioned in several of my articles about all the perks that come with freelancing – the opportunities to work from any place you’d like, work on your own timetable and accept or reject work as you please.

That being said, all those perks can come at a cost: (literally!) one of the most challenging things as a freelancer can be managing your money. Freelance work means you won’t often have a steady, reliable source of income. Sometimes you might just be hired temporarily to help complete a time-sensitive project; other times you might have a little more stability in your position, but the pay won’t be nearly enough to help support you.

Now, don’t get me wrong; Freelancers who know what they’re doing and have reputable clientele can certainly earn more than enough to live comfortably. But when your income comes from multiple sources, it is vital you know how to manage that money.

1. Track Your Income

The first step in managing your money is to know how much money is coming in. Now, this might elicit a “well, duh,” statement, but many people don’t keep track of their income. Maybe you know how much money you received in your last paycheck, but do you know how much money you earned in the last month? What about the last year?

Kristen Euretig, a certified financial planner, said having a historical view of your income can help you prepare for the busy and slow times of the year, especially if your work is mostly seasonal.

2. Create A Budget

Once you’ve figured out your financial input, you can plan you financial output. Many organizations recommend the 50/30/20 method: you use 50 percent of your income for necessities such as bills and groceries, 30 percent for things you want but don’t need, and 20 percent for savings and paying off debt.

3. Save For Retirement

This could definitely fit under the category of creating a budget, but I made it entirely separate because of how daunting a retirement account could seem for freelancers. Many companies will help provide a 401(k) for their long-term employees, but freelancers don’t have the same luxury.

It is absolutely essential you set up a solo 401(k) or individual retirement account and try to contribute about 15 percent of your earnings toward that account.

4. Keep Money For Taxes

After each paycheck, set some aside for tax season. An employer usually holds off taxes for their employers, but freelancers are responsible for paying their own taxes once the season rolls around. Nerdwallet has a great tax calculator you can use to get an idea of how much money you can expect to pay during taxes.

5. Adjust Your Rates

There are two main things to keep in mind when it comes to adjusting your rates: first, know your worth and don’t undersell your skills. Second, know when a certain job warrants more than your flat rate.

Many freelancers tend to undersell themselves and their skill because they’re so eager to get any kind of job. Because of this, many companies often take advantage of the low rates they can get away with paying their remote workers. Don’t be afraid to ask for a higher rate.

You might start your work at a flat rate for any company, but if a certain job or project demands more of you than usual, you should increase that rate to get the payment the job deserves.

Managing money can be one of the most daunting aspects of being a freelancer, but as anyone who works from home knows, organization is key. When you can follow the five steps mentioned above, that “cost” I mentioned earlier doesn’t really have to be so.

Emily Brady received her Bachelors at Brigham Young University Idaho where she majored in Communication Sciences with an emphasis in journalism and professional management. She has written for Scroll News and Deseret Digital Media and is currently a freelance writer. In her free time she enjoys hiking, reading and swinging in her hammock.