Freelancing is quickly becoming the norm for millions of young workers, but that doesn’t mean that freelancers have it all figured out. There are still a lot of struggles that both new and experienced freelancers go through every day. It is especially difficult to manage the responsibility of creating your own income. With a reliable 9-to-5 job, you know exactly when your paycheck is coming and how much it will be. However, as a freelancer, your income can fluctuate and be hard to predict.
Consequently, freelancers must be even more careful with how they plan their financial futures. So, in today’s post, we’re going to look at 5 personal finance tips for freelancers!
When it comes to saving for retirement, there’s no time like the present. The longer you wait, the less you’ll have to live on once you retire. Moreover, if you fail to start saving for retirement now, you may have to delay retirement by several years. Unfortunately, freelancers don’t get access to a 401(k) or other investment benefits that come with many traditional jobs. So, you’ll have to manage on your own and open a retirement account as soon as possible!
Budgeting your money can be difficult when your income fluctuates. That said, it’s definitely not impossible. You simply need to hope for the best and plan for the worst. In other words, you need to budget your money so that all of your basic expenses are accounted for (housing, food, utilities, insurance, taxes, etc.) and make realistic estimates of your daily, weekly, monthly, and quarterly expenditures.
Many freelancers forgo health insurance because they don’t want to pay the monthly premiums. Unfortunately, this is a huge mistake. Without health insurance, you could get stuck with enormous medical bills when you go to the doctor. Even worse, without health insurance, you could get turned away at the door. So, even if you can only afford a cheap “emergency” health insurance plan, go ahead and enroll. It will be well worth it once you’re older and experiencing issues like joint pain, in which case you can go to the experts at ThriveMD for help!
Freelancers often feel like they’re completely alone. They create their own income, dictate their own schedules, and manage their own finances. Not only can this get lonely, but it can also cut you off from a lot of great and useful financial resources for freelancers. Rather than isolating yourself, reach out to communities of freelancers on websites like Reddit or Upwork. You’ll often be able to find invaluable advice and resources to grow your wealth as a freelance worker!
Finally, there’s no better way to increase your revenue and improve your personal finances than by diversifying your income. Whether you run a mommy blog or offer consulting services to real estate agencies, you need to find multiple ways to bring home the bacon. This way, you can worry less about finances and more about enjoying the fruits of your labor!
Are you looking for even more personal finance advice? If so, be sure to check out one of our other posts on Because I’m Cheap today!