In freelancing, spendable income refers to the amount of money that the freelancer has available to spend on their personal and business expenses after deducting all necessary business expenses and taxes from their gross income.
As a freelancer, gross income is the total amount of money earned before any deductions. However, freelancers are responsible for paying for their own business expenses, such as equipment, software, rent, marketing costs, and more. Additionally, they must also pay taxes on their income, including self-employment taxes.
Therefore, spendable income is the amount of money a freelancer has left over after accounting for their business expenses and taxes. This is the amount of money that the freelancer can use to pay for personal expenses such as rent, food, transportation, and other living expenses.
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