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From your posting it looks like the break-even point will be somewhere between $550 and $800 gross receipts per month to meet those expenses depending on your tax bracket and the amount of eligible deductions. She should expect the first 90-180 days to be at a loss unless she has a backlog of work already. Once the money begins to flow, the simple budget is that her cumulative costs against cumulative earnings should be used to track expenses and a reserve of one to three month's cash should be a goal. In other words, until she has a sense of how the money will flow it's best to consider money spent unless she has more than 3 x $450 net in her business account. After a while she'll be able to adjust it to reflect her actual cash flow and either keep more or less in reserve.
She should keep a good account of when work is billed and when payment is made by client name. Some clients will consistently pay faster or more consistently than others. Some may cut freelancer checks only once a month. Some will delay payment as long as possible but are good steady clients so worth the effort. Knowing the expected lag time helps to budget.
Second, she needs to think about estimated taxes before the end of the first quarter of freelancing because depending on the amount she earns she may need to start paying taxes this year rather than wait until she files for 2007. There are forms, worksheets, and instructions available at www.irs.gov and the the key ones are Estimated Tax form (1040-ES)and Schedule C.
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