Most freelancers, especially beginners, work unofficially: they accept payment on e-wallets or a bank card, they are not registered with any company, they do not make pension contributions. Accordingly, there can be no question of any state pension and paid sick leave and vacations. How can you be confident in the future?
A freelancer is simply obliged to learn the question of competently managing their money. After all, he does not have fixed dates for advance payments and salaries, and any illness or desire to take a break from work immediately forms a financial hole. Therefore, if you want at least some stability, follow these simple rules:
- You should have some kind of emergency supply, in case of sudden no orders, illness and other unplanned downtime. Calculate your average monthly spending (not the minimum, but the average!). The size of the NZ should be 6 - 12 times your spending every month. Then you will work calmly, and not shake every time the customer delays payment or the laptop suddenly begins to behave incomprehensibly and with all its appearance shows that it is time to replace it. But you need to remember that this money is only for unforeseen cases. And if you used them, be sure to return to the account from the nearest receipts.
- Plan big expenses, be it training courses, a new technique, or a vacation. Set aside a part of each income for each category of expense (determine the amount yourself, it will depend on the remoteness of the event and your income).
- Take care of yourself in old age. Save money on a deposit regularly, study investment instruments, find ways to increase your capital that are acceptable for you in terms of risks and returns. For example, one of the options is accumulative life insurance: you regularly transfer money to the account of the insurance company, and at the end of the contract it returns it to you with interest. At the same time, during the entire term of the contract, your life and health are insured, and in the event of temporary incapacity for work, you will receive an insurance payment.
