A Freelancer is not same to employee. The Freelancer does not receive month paycheck like the employee does. Sometimes they get money twice in a month but sometimes they get nothing in a month. The freelancer often get more money than the employee receive. It is because the company does not need to pay the insurance, the health benefit, retirement fund to the freelancer. The freelancer must pay those benefit with their own money.
The freelancer face with uncertainty income, uncertainty benefit, and uncertain future. They have to make well preparation to face with the future. Here are financial planning for the freelancers.
1. Set most of your income to your future. The freelancer has no retirement fund and they must realize it. Collect as many as you can for your future. The money can be used for the big expenses such as medical bill, kid college, house and others.
Some freelancers trust to retirement fund. They can take the benefit when they need the money.
2. Saving and invest the money
Save the mot of your income. You will need the money someday. Invest the money on stock that can give high profit. If the freelancers still young, they can take the risk. Some stock is also good for long term too.
3. Find other income sources
Most freelancers open a business that has relate with his experts. For example: The website designer often found IT company who provide the IT service. They can ask other designer to join the company. The business might be other income source for you if your business success.
The freelancer may work for other people. You can teach at the university or school. It will not disturb your schedule because you just need two or three hours for teaching.
4. Set the tight budget
The freelancer must be a simple man. They do nor want to extravagant the money or overindulgence. They must realize that they are far from financial freedom.
Surely, you do not need to be misery. You can still donate some money or help the close people near you.
5. The freelancer should have a shelter
Like other people, the freelancer should have the house. The freelancers may be difficult to get the mortgages due they do not have salary. The bank might not approve the mortgage propose. If you can get the mortgage, you can save the money and pay the house cash.
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