Finance
I found David Thomas's finance class to be interesting and educational. Exploring various aspects such as sole trader types, freelancing, taxes, invoicing, and overall financial management provided valuable insights on how to monitor finances and plan for the future.
Budgeting sheet while at university:
Budgeting sheet while at university:
Short-term savings
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After analyzing my short-term savings needs, I concluded that saving at least £3000 is essential, given my monthly living costs of approximately £1000. To achieve this goal, I estimate it will take me around 1.5 to 2 years of consistent monthly savings.
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Medium-term savings
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My plan involves setting aside a consistent 10% of my income. This approach allows me to build a financial cushion for upcoming goals or potential opportunities without compromising my current financial stability.
Long-term savings
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When it comes to long-term savings, my strategy involves allocating a substantial portion of my income, specifically targeting a range of 15% to 20%.
Additionally, I am contemplating the possibility of diversifying my long-term investment portfolio by considering options such as contributing to a private pension fund and exploring opportunities in property investments.
Invoicing
Salary rates​
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Based on my research the salary for a junior animator can vary significantly based on factors such as the company and skill level. However, I would estimate that the average annual salary is approximately £25,000.a year.
Pay rate as a sole trader
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Based on my earlier analysis, I determined that my net income, after accounting for taxes, as an employed junior animator would be approximately £76 per day.
Transitioning to a sole trader model, where I am responsible for my taxes and may need to cover expenses like software subscriptions for Maya Indie and Adobe, it's clear that I would need to factor in these costs.
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With the 20% tax addition, my daily rate should be adjusted to £91. Considering potential software subscriptions and other associated expenses, a fair compensation range would likely be between £100 and £150 per day, depending on project complexity and delivery timelines.
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