How I Plan My Finances as a Designer in 2025

Tips on managing money as a freelance designer for a sustainable and balanced business.

I’ve received many requests to share insights into the “non-design” aspects of running a design business - especially how I manage money. Today, I’ll give you a glimpse into how I approach financial planning. Hopefully, it can serve as inspiration for your new year.

The Challenge of Managing Money as a Designer

For many of us, managing finances as a designer isn’t intuitive. In Italy, financial education isn’t part of our schooling, so most of what I’ve learned comes from books, courses, and trial and error. The typical mindset is: earn a salary, save a little, and spend the rest. However, as a designer or entrepreneur, this doesn’t work. We need to think like business owners, not employees.

I don’t have images for this topic, so I’m putting some random stuff to give color to these words.

Where I Learned About Design Finances

Here are the key resources that shaped my approach:

1. “How to Run a Successful Design Business” by Shan Preddy
   A practical manual, not a flashy “get rich quick” guide. It helps you define the fundamentals of running a design practice and clarifies your priorities.
   This helped me to understand that being a design can’t be improvised and I learned the basics to give a proper structure to my job. It’s very detailed.

2. “Profit First” by Mike Michalowicz
   This book introduces a simple, actionable framework for managing finances. While it’s more generic, it’s a great tool for refining your financial strategy as a freelance designer.
   This was a good start to do a first step in how pratically manage some business money.

3. The Design Trust Courses by Patricia van den Akker
   Focused on small design businesses and self-production, it provided useful tools to price work effectively and plan finances strategically. It’s not a book, it’s more a web resource, now I think it’s by subscription only.
   This was a mix of the two, useful to clarify my mind and start to set up a proper strategy.

These resources taught me the importance of clear planning and separating business finances from personal expenses.

How I Allocate Income as a Freelance Designer

Here’s an example based on percentages, assuming a freelance income of €50,000/year (something decent contextualized to the territory of Italy). Adjust the numbers based on your actual income and expenses.

1. Taxes (35%): Always set aside enough to cover taxes. In this case, that’s €17,500. Check your local tax laws to calculate your percentage accurately.

2. Salary (35%): Allocate a consistent salary for personal expenses. That’s another €17,500.

3. Business Growth (25%): This portion funds your studio, tools, networking, and media. Break it down further:

   • Rent: Around 5–10%. I currently allocate 7.5% for my studio and lab, which supports prototyping and content creation.

   • Software & Tools: Essential investments like design software or new equipment.

   • Networking & Media: Focused investments in marketing, exhibitions, and building connections.

4. Savings (5%): Set aside a small emergency fund or end-of-year bonus.

Key Lessons on Budgeting

1. Invest Wisely in Your Studio
   If you’re just starting, avoid overspending on rent or unnecessary equipment. For example, if you earn €2,000/month, paying €800 for studio rent isn’t sustainable. Keep it under control - around 5–10% of your income.

2. Prototyping and Exhibitions
   If you’re self-funding prototypes, these should come from your business growth budget. For exhibitions, carefully evaluate the return on investment. Are they helping you build valuable connections or showcasing your work effectively?

3. Networking with Purpose
   Attending events is only worthwhile if they align with your goals. Focus on meeting people genuinely interested in your work rather than chasing every opportunity.

4. Media and Social Presence
   Social media can be a powerful tool, but managing accounts professionally can be costly. A basic social media manager may charge around €600/month (still contextualized to Italy) - over €7,000/year. Make sure the investment aligns with your business goals.

My Financial Plan for 2025

This year, my focus will be on networking and media. Initially, I planned for an exhibition, but feedback from experienced designers shifted my priorities. Networking and media offer a broader reach and better ROI for my current goals.

For example, with €12,500 allocated to business growth:

• €3,750 goes to rent.

• €2,400 is reserved for software and tools.

• €6,350 is for networking, media, and exhibitions.

This distribution ensures my business stays balanced while allowing room for growth.

Managing money as a designer requires discipline, planning, and adaptability. What works for one person might not work for another, but having a clear framework is essential. I hope this breakdown helps you think about your own financial strategy for the next year.

Let me know your thoughts or share your approach to managing design finances. Reach out via Substack (send direct), Instagram, or LinkedIn.
This newsletter is a bit different from the previous, let me know if you liked it pushing the ❤️ at the end of the text.

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A design I like

This newsletter is already packed, so I’ll keep this short by sharing a design I truly admire.

Let me introduce you to Animal Factory by Luca Boscardin—a brilliant combination of simplicity and functionality. This series of large metal animal structures is designed for outdoor spaces, serving both decorative and functional purposes. These playful creations can be used as public gym equipment or as part of children’s playgrounds, making them versatile and engaging additions to urban environments.

What’s particularly fascinating is the origin of these designs. Luca, an illustrator by trade, began with a creative exercise: drawing animals using a single continuous line. From those minimal yet expressive sketches, he brought his illustrations to life in three-dimensional form. The result is a perfect blend of artistry and practicality - a whimsical idea turned into something tangible and interactive.

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I hope you found this newsletter interesting and I’m open to any feedback or request.

If you are curious about a particular argument, feel free to ask and I’ll do my best to talk about it.

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📣 Please join me in spreading the word—not only to share these insights, but also to inspire others to do the same.

The more of us there are, the better it is!

Cheers!
Mario

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