Freelancers vs. Inflation: How to Stay Profitable in Tough Times

Inflation doesn’t just hit the grocery store—it hits freelancers differently.

Being self-employed can be a struggle, especially in the beginning stages. There is a lot of information on how to weather financially difficult times as an employed individual. So what can freelancers do when their paycheck isn't always guaranteed?

Maybe your clients have cut their budgets. With inflation, your bills go up, and fixed-rate contracts don't cover as much as they used to.

The first step is not to panic. In this article, we'll go over all the steps and challenges you might face to get through an unstable economy.

Step 1: Raising Rates Fairly (And Communicating It Well)

I know it can be scary to think about raising your rates. There's always that fear of losing clients. I get it, I've been there and felt that same fear.

But what I found was that raising my rates helped improve my work, my time, and my quality of life. Instead of juggling six clients and stressing over deadlines, I could work with three high-quality clients who respected my time and my work.

Raising your rates forces you to have to level up in order to either keep high-value clients or obtain them. It pushes you to focus on improving your skills, attracting better clients, and moving away from the ones you honestly can't afford to work with anymore.

It’s not something to fear, it’s something you should want to do. Your business should always be growing and adjusting in ways that allow you to make money without sacrificing all your time, energy, and money (aka suffering).

If things are worse for you than they were when you were working a regular job, then you're doing it wrong.

If you never adjust your prices, then you’re actually losing money every year.

When to Raise Your Freelancer Rates

• Once per year (minimum)

• When your cost of living increases

• When demand for your services grows

How to Raise Your Freelancer Rates

For example:

Let’s say you’re a freelance content writer charging $150 per article.

A 5% inflation adjustment means you’d now charge $157.50 per article.

If that client orders one article per week, it’s a small change for them, but over the course of a year, that small difference adds up a lot for you and your annual income.

That’s the power of protecting your income.

If you're charging hourly, here’s some quick math:

• $45/hour × 0.05 = $2.25

• $45 + $2.25 = $47.25/hour new rate

Small numbers when you look at one job. Big impact when you add up a month’s or year’s worth of work.

How to Communicate a Rate Increase

You don’t need to apologize. You don’t need to write a novel. You just need to be clear, professional, and confident.

Sample Letter to a Client:

Hi [Client Name],

I’m reaching out to let you know that due to inflation, I’ll be adjusting my rates by 5%. For example, my rate per [FILL] will move from [AMOUNT] to [AMOUNT + 5%].

This still includes the all the same services I normally provide each [DAY/WEEK/MONTH].

The new rate would start in [Month]. I want to be sure this works for you, so please let me know if you have any questions or concerns.

Thanks so much for being a great client! I look forward to continuing our work together.

[Your Name]

Notice how it’s calm, clear, and respectful, without begging for approval.

What to Avoid When Raising Rates

• ❌ Don’t apologize ("Sorry for the inconvenience...")

• ❌ Don’t overexplain ("Due to XYZ personal reasons...")

• ❌ Don’t ask permission ("Would it be okay if...?")

You’re informing them of your situation, you have to raise your rates, and you're not asking for permission.

Offer Flexibility (Without Undercutting Yourself)

If you’re worried about client budgets, offer options without lowering your rates.

Remember, they have the right to say no if it doesn't work with their budget. At that point, you can work out something that does work with their budget.

Maybe it means doing less work for that client at the new rate. Here's some ideas:

• Tiered service packages: “Here’s what I can offer at different price points.”

• Monthly retainers: “You get X deliverables per month for $X.” this simplifies planning for both sides.

• Trimming deliverables instead of lowering price: Fewer revisions, less add-on work, but keep your hourly value intact.

  
  

You stay profitable while staying professional.

Step 2: Adjust Your Services for Profitability

The next thing you have to do is tighten up what you offer and how you offer it.

One of the best ways that you can do this is by productizing your services.

When you offer clear, flat-rate packages, it’s easier to raise your prices, and it’s easier for clients to say yes.

No guessing. No scope creep. No endless haggling over hours.

Double down on what actually pays. If a client or project feels like it's draining you dry for barely any return, then maybe it's time to cut it loose.

It’s better to have fewer high-quality clients than a bunch of ones who don't help you elevate yourself.

With working for clients, the goal is that both you and your client level up. They get your best work, and in turn that helps you get better work in the future. It should always be mutually beneficial.

Create flat-rate bundles. The more variables you remove, the smoother your business runs. Clients love knowing exactly what they're getting, and you’ll love knowing exactly what you’re delivering.

I survived inflation not by working more hours, but by charging fair rates and streamlining what I offered. Work smarter first. Work harder only if you have to.

Step 3: Financial Tips That Help You Weather Hard Times

When the economy gets shaky, you can't afford to be sloppy with your money. You need a plan that helps you stay standing even when everything around you feels unstable.

✅Build a Buffer

Your emergency fund isn’t optional, you need a safety net as a freelancer or solopreneur. You could find gaps in work from clients needing to take a pause, or maybe they no longer need your services.

Start building it until you’ve got at least 3–6 months of living expenses set aside.

When new client money comes in, pay yourself second.

For self-employed individuals, savings first, lifestyle second. Always.

✅Cut Unnecessary Expenses

Take a hard look at your monthly costs:

• Cancel any software you haven’t used in the last 90 days.

• Kill off forgotten subscriptions.

• Plan out meal costs.

• Consolidate tools where you can.

• Create a spreadsheet listing all your monthly expenses and use a budget system such as these:

  • My Rule of 3 for Optimal Money Management

  • Freelance Budget Calculator

  • Nerd Wallet's 50/30/20 Budget Calculator

Lean and flexible beats bloated and trapped.

✅ Keep Your Income Flowing

Don’t let yourself rely on one or two clients. Aim for at least three active clients or income streams at any given time.

Set aside 21% for taxes and savings automatically, so you’re not having to scramble later.

And if you can? Start building digital products like templates, checklists, or guides, something that earns for you even when you're not working.

💡My Personal Tip: If all your money depends on one client or one platform, you're one bad day away from finding yourself kicked into panic mode. You always need to be working on your backup plan. I write about this in my 30-hour freelance rule article you can read for free.

Step 4: Smart Ways to Adapt Without Burning Out

There is immense pressure when money gets tighter. Your instinct might be to hustle harder. Don’t. That’s how you burn out and break down everything you built.

Here’s what works instead:

• Batch your work. Group similar tasks together to keep your energy clean and focused.

• Say no more often. Protect your time like your future depends on it, because it does.

• Use slow seasons wisely. Update your portfolio, tweak your service offers, fix your backend systems. Get more certifications. Plant seeds while everyone else is panicking.

• Collaborate, don’t isolate. Partner with other freelancers. Send referrals. Join coworking calls. Having a community keeps you sane and sometimes opens up new client doors.

  
  

💡My Personal Tip: Burnout doesn’t happen from working hard. It happens from working hard with no plan.

Final Thoughts

You can’t control inflation. You can't control the economy. But you can control how you show up, how you charge, and how well you prepare.

This economy is tough for everyone. But you don’t need to underprice yourself or grind yourself into the ground to survive it. Raise your rates, adapt your systems, and keep pushing through.

Stay strong enough to keep building the life you actually want.

That’s just my two cents on the matter.

Until next time,

-Jess

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