According to my observations, there are more and more freelancers, although I don't know the exact answer, but in general, freelancers have free working hours that can be completed anywhere and anytime without having to be a full time employee. A freelancer's income is uncertain every month (always changing depending on the activity), so many people think there is no guarantee of financial freedom in the future, so if you are a freelancer not only expertise, willingness and hard work are needed but also need to manage financially well. reliable. Here are 6 ways to manage freelancers' finances:
1. Record All Income and Expenses
As a freelancer you need to record all your income and expenses every day and add it up every month. You can record it in a special cash book or on your smartphone and desktop/laptop. After 3 to 6 months you can evaluate the cash inflow and outflow records, if your expenses are too large you can cut your expenses that are less needed.
2. Setting up an Emergency Fund
As a freelancer you also need to prepare an emergency fund, which at any time you need, set aside at least 10% of your income every month. If it's too big you can reduce it a little.
3. Create at least 2 bank accounts
You should also be able to save money at least 2 different bank accounts, the first account you can use to finance your expenses every month, while the second account you can use as savings and investment.
4. Pay Off and Avoid Debt
If you have debts, pay off immediately, but if your debts are large then you can pay the debt in installments every month. Avoid new debt, especially online purchases that offer paylater convenience.
5. Prepare a Budget
After you get an overview/insight about your expenses, you can start preparing a monthly spending budget for next month. You can also find out your average monthly expenses. Make a list of expenses according to priority needs, primary, secondary and tertiary, on primary needs focusing on basic needs, such as apartment rent, internet, telephone, electricity, water, food and beverage costs.
6. Perform Financial Evaluations Periodically
To carry out financial evaluations on a regular basis is not difficult, you only need to compare real expenses with the budget,
is it profitable or unprofitable?. So you can find out which expense items need to be revised.
7. Invest
The need for investment by freelancers to achieve financial freedom in the future. There are so many alternatives that can be used as investment instruments out there such as stocks, bonds, property, mutual funds, cryptocurrencies etc.
1. Record All Income and Expenses
As a freelancer you need to record all your income and expenses every day and add it up every month. You can record it in a special cash book or on your smartphone and desktop/laptop. After 3 to 6 months you can evaluate the cash inflow and outflow records, if your expenses are too large you can cut your expenses that are less needed.
2. Setting up an Emergency Fund
As a freelancer you also need to prepare an emergency fund, which at any time you need, set aside at least 10% of your income every month. If it's too big you can reduce it a little.
3. Create at least 2 bank accounts
You should also be able to save money at least 2 different bank accounts, the first account you can use to finance your expenses every month, while the second account you can use as savings and investment.
4. Pay Off and Avoid Debt
If you have debts, pay off immediately, but if your debts are large then you can pay the debt in installments every month. Avoid new debt, especially online purchases that offer paylater convenience.
5. Prepare a Budget
After you get an overview/insight about your expenses, you can start preparing a monthly spending budget for next month. You can also find out your average monthly expenses. Make a list of expenses according to priority needs, primary, secondary and tertiary, on primary needs focusing on basic needs, such as apartment rent, internet, telephone, electricity, water, food and beverage costs.
6. Perform Financial Evaluations Periodically
To carry out financial evaluations on a regular basis is not difficult, you only need to compare real expenses with the budget,
is it profitable or unprofitable?. So you can find out which expense items need to be revised.
7. Invest
The need for investment by freelancers to achieve financial freedom in the future. There are so many alternatives that can be used as investment instruments out there such as stocks, bonds, property, mutual funds, cryptocurrencies etc.
