Money Management Tips for Freelancers during COVID19
It is hard to even imagine being a person who is expert at managing money. Even though you earn a substantial amount of money, many things fall through the cracks and you end up with broke, but if you look at the recent scenario, the situation is completely out of control. In the amid of COVID19 pandemic, many people have been thrown out of work and now struggling to land a job.
While full-time employees are facing the consequences of economic recession, freelancers are worst hit by COVID19 pandemic. When it comes to choosing between full-time employees and freelancers, companies choose the former as they are more productive, flexible and work at lower wages compared to the latter. As a freelancer, you do not have to worry as long as money is coming in, but the problem arises when all doors to income are shut and you end up dipping into your savings.
Nobody knows how long the economy is likely to face the impact of COVID19, but it is evident that it is not fleeting. When you know that the economy will likely be doom for a long period, you should try all your best to stay afloat. Here are some tips you should bear in your mind if you are a freelancer.
Do not rely on one income stream
Expecting that there is a business that is running as smoothly as before the outbreak of COVID19 is absolutely nincompoop. Every business is going through losses due to the pandemic and this is why it is not surprising if you have faced a drop in the number of projects. However, freelancers have some scope to take advantage of the pandemic crisis.
Since people have to maintain the protocol of physical distancing, many companies are asking their employees for out-of-house work. as freelancers get payment based on the project, which is why they are much more affordable than full-time employees. Even if you have been earning money from one patron, you should never stop to grab projects from other clients.
You may feel like you have won the lottery when you finally get a client, but you should be careful. You can lose all your income in one fell swoop if you and your client part ways from each other. you can diversify your income by approaching multiple clients and by offering different services. For instance, you can be a writer as well as social media manager.
Do not underestimate budgeting
Freelancing income is unpredictable and there is no steady paycheque. It is crucial that you have a record of each penny. It is likely that this month you have a large number of projects but next month you will not be having any.
If you recklessly spend your money, you will find yourself broke at the end of the month. On account of inconsistent cash flows, it is imperative that you create a budget.
Create an emergency fund
Budgeting will help you create an emergency cushion. Unexpected expenses do not intimate you before knocking at the door. Having an emergency cushion can help you meet unforeseen expenses down the line. Make a habit of setting aside a fixed proportion of your monthly income to create an emergency cushion.
Though you can Holen Sie sich Kredit ohne Schufa Erfahrung when you need money during emergency, it does not mean that you will not set aside money for a rainy day. Financial experts suggest building emergency cushion to keep the size of debt as minimum as possible.
Try to invest money
As you know that income from freelancing is unpredictable, you should start investing money. This is a great way to beat inflation. If you do not have much idea about the investing world, you should prefer investing money in bonds instead of shares.
Fixed deposit is also a great way to get onto the investment ladder. With investing in multiple assets, you can create wealth over a long period.
Money management can be tough for anyone during COVID19 pandemic. As freelancing is not a steady source of income, it can be a bit hard to manage money. However, the other hand freelancing seems to be a good opportunity during COVID19.
In fact, if you are a student, you can start freelancing. It will be easy to manage projects until schools and colleges do not resume. You can utilise this time to earn some money and when you come up with emergency, you can take out credit for students with no income.