Gig economy is at an all time rise. So many people are gravitating towards careers they love and they are passionate about. With bosswoman and bossman becoming their new designation, the exhausting and demanding freelancing career is seeing no downward trend. It’s quite the contrary. 

Freelancers are apt at multi-tasking. However juggling home, work and finances can be daunting. Financial health is crucial to make your freelancing career even more enjoyable. You want to focus on creative challenges as opposed to money hassles. The only way you can do that is by ensuring your finances are in control, you are financially protected and on your way to financial freedom. 

Is that thought and all the talk about money management making you anxious? Fret not! To help you plan your finances well, we’ve narrowed actionable and insightful tips. 

1.Pay yourself first

iPad, new jewelry, a wallet, gift for loved ones. The moment a project fee is credited, you’re thinking about how you’ll spend it. Expenses cannot be avoided and needs are what brings us happiness. So how do you go about spending your earning. 

First step is to think about you! And paying yourself. This is your way of ensuring you get a monthly paycheck, you save that amount and invest it wisely to sustain and grow your money. 

2.You are your brand and income

As a freelancer, you’re already aware, how you are the brand, face and voice of your skill. Without you, there will be no work or income flow. It is for this very reason that you need to make sure you have enough insurance and health care protection. 

If you’re the bread winner in your family, your life becomes even more valuable. Assess your financial standing and make sure you sign up for insurance that will cover all your needs medically in your presence and absence, should a day like that arise. 

3.Plan for contingencies and dry days 

Freelancers do not have a steady income. It is easy to take a detour from budget and overspend the earned money. Imagine you just bought yourself a lavish car, dipping into your income and savings. Next day the government announces a lockdown on account of the pandemic. How do you survive without having enough money in your account?

You need to build an emergency fund to cover six to twelve month of expenses at the least. Invest this money within an easy reach. This will be act as your umbrella on rainy and gloomy days. 

4.Time is money

People mistake money to be the only factor to measure growth and success. They often overlook the importance of value and time. Without time, money have no value and without money your time is spent doing things you don’t necessarily want to. 

Start investing early and make the most out of the time you’ve on hand. Take small steps and you’ll accomplish big goals in no time. Plan milestones, invest towards them with a time horizon in mind. 

5.Make the most of compounding

Compounding is to financial plan what oxygen is to life. You need to inhale the benefits and exhale any fear, doubt and apprehensions you’ve with the right guidance and financial planner as your mentor. 

The only way to make your money work for you is leveraging the magic of compounding. Financial planners are the key to unlocking the doors through the maze of confusion, multitude of investment choices and finding the treasure that’s yours to own. 

If you’re a freelancer, ensure you’ve your money management in place from the get go. You’re never too early or too late to begin your financial planning journey. Don’t let the volatility of your income flow discourage your big dreams. Reach out to our award winning financial planners to plan, monitor and help you achieve life changing financial freedom.