3 Money Levels to Go Indie |
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Note: This is not financial advice, just my experience.
Managing money can be tricky. There are many incentives to live in debt.
If you work a 9-to-5 and want to go indie one day, it is vital to get out of the trap of living from paycheck to paycheck.
I’ll show you how I went from having zero dollars at the end of each month, to creating the freedom fund that today is powering my indie developer endeavors.
Money comes in, money goes out
I still remember opening my bank account and wondering what happened with the money that was there two weeks ago!
If you have been here, you know the feeling. There’s no easy way to tell where your money went after paying the bills and a couple of card swipes. What’s tricky about money is that our decisions about it many times are led by emotion.
At this stage you are not managing your money but surviving from month to month.
Level 1: Tracking expenses in a spreadsheet
My turning point came when month after month I realized my debts weren’t going down.
I created a Google Sheet. Nothing fancy, two columns: description and amount. One tab/sheet per month.
You don’t need to obsess over every cent. It is enough to update it once or twice a month to notice patterns. My realization was that I was spending too much and paying too little.
Level 2: Budgeting expenses in a spreadsheet
After a few months of tracking expenses I noticed it was easier if I grouped them in categories.
I didn’t know about the 50/30/20 Budget Rule back then. But that’s how I group my expenses today: needs, wants, and savings.
Having the categories in place allows you to see where the money is going, which means you can make better choices for the future.
Level 3: Using an app to budget and track expenses
Once tracking and budgeting expenses became a habit, I felt ready for more granularity.
First, I tried Spendee which didn’t replace my spreadsheet, but it helped me get a better understanding of my daily expenses. Then I took the jump to YNAB (You Need a Budget).
YNAB encourages you to give every dollar a job. If you have unexpected expenses, you can take from other categories. This approach has allowed me to be more intentional with money.
*You and I get an additional free month when you subscribe
Grow a Freedom Fund
When I decided to become an indie iOS developer I started saving money on an Emergency Fund, that I later called Freedom Fund.
I started small: 5% of my income to build the habit.
A mistake I made along the way was to borrow money from savings for things I wanted (not needed).
How much is enough?
Every situation is different. I calculated for one year ((Needs + Wants) x 12). However, reality always beats plans. When I decided to go indie I only had half, but life gave me a push.
Creating a Freedom Fund is not easy. It took me many years to start saving, and many months to notice mistakes like borrowing money from savings. Which leads me to my last point:
Set aside time for reflection. The only way to notice patterns is to take a step back and look at the past months. Reflect at least once every quarter.
🎨 Indie life
Last week:
- I wrapped up my last user testing interview.
- I spent time thinking about pricing, revenue goals, and business models—selling an app, white-labeling, or offering personalized experiences.
- I tried to enroll in Apple's Developer program, and faced a common problem.
Learning to create content while building my first iOS app is challenging, but exciting! You can also check out the video version of my previous recap.
🌊 Internet bits
