If you are an employee, you have numerous options of savings. To name a few, there are company retirement plans, employee provident funds, and so on. All of these can be deducted from your salary and can keep on accumulating side by side for your future.
BUT, the freelancers do not have any such opportunity. There is no fixed salary, and no deductions take place. Hence, auto pilot saving is also not available to them. For a freelancer, the financial planning hence becomes even more important. Since the earning is not fixed month wise or year wise, it is important for freelancers to plan out their finances much in advance.
Credits or Loans
When it comes to taking loan, your credit card karma is always taken into account. But for freelancers, taking credit can become risky since there is no fixed salary or office to show.
If you have done proper financial planning, then you can take loans or credit on the base of your savings itself. Create different funds for yourself as long as you are carrying out the financial planning. This way, your requirement for loan also becomes easy to handle.
Moreover, doing small investments and paying out the loans on time will only help you build your credit score, even if you are a freelancer. Getting store credit card will also become easy if your score is good enough.
Be Safe for Future
Since the earning is not fixed, there is no guarantee when you might become hand to mouth. There may or may not arise such situation. So to be on safer side, start planning your finances properly from today itself. Make emergency funds, long time funds, take health cover, and so on, so that you don’t have to depend on anyone else in the future.
For this, you need to be highly disciplined and carefully plan out what all you need to do. For every freelancer, the planning is not same. So take out time and carry out the planning carefully, and then start implementing it as soon as you can.
It is better to be safe than sorry.