A few months ago, I wrote an article for the Elance blog that discusses how I’m able to live the life of a freelance writer while going snowboarding almost any day I want. I talked about how to get clients onboard with your ideal schedule as well as ways to get more done in the time you spend away from pursuing your dream.

I didn’t have time to talk about personal finances, an equally important aspect of doing what you love every day. Would you care to guess how much money I’m making while I’m living my dream? The answer is a lot lower than you might think.

I make about $1,700 a month. I use this money to travel the world, purchase new snowboarding equipment, pay rent, eat, and go out (very occasionally). At $1,700 a month, I’m making a little more than $20,000 a year. After self-employment taxes, the real amount is much less than that. You see, I really don’t make that much. I just know how to spend it very wisely.

How You Can Pull It All Together On Almost Nothing

I can snowboard year round because I don’t pay much for rent, I almost never go out to the bars, I carpool to the mountain with my friends, and I stay at my parents house in between seasons. Is this the dream life? For me, it is. I love to snowboard, and I would have a very difficult time adjusting to an office job when I’ve tasted the joys of working in my pajamas and leaving the house whenever I want. I’m also philosophically opposed to commuting (unless I’m going snowboarding).

Here’s what I’m saying. There are two sides of the coin when it comes to living the dream. It isn’t just about making a ton of money. That doesn’t matter if you’re spending it on $200 nights on the town. If you want to live your dream, you need to figure out what matters the most for you, and you need to budget for it.

Avoid Temptation Daily. Stick To Your Unique Agenda.

There are a ton of ways to spend your money, and you’re always being tempted. A girl out here in New Zealand just won $27,000 on Deal Or No Deal. In less than 6 months, she blew it all. How did it happen? One dollar at a time. She had to buy the best of the best, and wouldn’t you know it, those expensive bar tabs added up.

What’s she doing now? Last I heard, she’s a gas station attendant making $13/hr.

Don’t buy the best food. Buy as much as you can on special. Cook at home, and never let your leftovers go to waste. This is some pretty obvious advice, but it bears repeating. If you land a client that pays $50/hr, don’t start thinking you’re gonna be rich. Celebrate quietly with a cheap bottle of wine. At my house, we’re all big fans of Carlo Rossi.

Be Prepared For Hard Times

I keep a cushion of savings in case times get tough. With at least a few thousand dollars in the bank, I don’t have to worry about going back into the restaurant business or finding myself working in a gas station. If you have a great month, put your extra money into savings. You’ll be thanking yourself when work starts to dry up.

Your cushion will also help you expand your business and reach new markets. You can always expect to make a little less when you’re shifting gears. That’s because you’re working your butt off to convince new clients that you’re worth more. Once you land those clients, you’ll see the benefits.

The people who really get into trouble are the ones who have nothing set aside. They end up taking very low paying jobs just to get through the month. Don’t put yourself in this situation! As soon as you start charging ridiculously low rates, people will walk all over you. Pretty soon, you won’t have the time to devote to blogging and building important business connections (Hint: you won’t get them from people paying $8/hr for your work).

I would be lying if I told you it’s easy to break into the online freelance writing market. My first freelance writing gigs paid less than $5/hr. For several months, I had no idea what I was doing. I worked in a restaurant to make ends meet, and I saved up as much as possible to launch my business. When the time came to make the transition, I had no other choice but to figure it out right away.

Expect to make much less than you would make at a corporate job in your first year. That’s the tradeoff when you are building your own business. You don’t have a boss to help you get new clients. You have to do it yourself. I spend as much time looking for work as I spend actually doing work. When I’m not snowboarding, I’m hustling harder than anyone I know.

My dream isn’t some far off beach cabana. It isn’t a life spent slacking. I love to work. I’m addicted to it. Even when I’m snowboarding, I’m working on new tricks and putting videos together. There’s nothing better than being involved, whether you’re working from home or at an office. I just prefer the former because there are too many sunny days in the year, and I don’t want to miss any of them.

Freelancing might be for you. It might not. If you’re willing to make some sacrifices, and you enjoy being in control, it’s the best thing ever. For me, it’s a chance to live the kind of life people only dream about.