With the vast freedom of freelancing comes the great power of taking charge of your own financial future. Those who choose for the freelance world can’t depend on the company 401(K). Just like with healthcare, a stable flow of work and funding for office supplies, you’re on your own.
Next to finding quality healthcare, savings and investments are possibly the scariest topics for anyone managing life in the Gig Economy. However, those who put the same creativity and sense of ownership into building a freelance operation have the skills necessary to do the same with their finances.
Think like a business
A good frame of mind to develop and one that benefited my own career, is to think and plan financially as a though you’re running your own business. This means strict budgeting for expenses and thinking through financial decisions with an eye towards the future.
Financial planning makes certain best effort to secure your financial wellbeing. Even if you are one-person operation, you need to think about where future income is going to come from, operating costs and the overall financial health of the business. Unlike in a traditional job, there isn’t a set salary or annual pay bump to depend on. While specific advice varies, many financial experts propose that you live on half your income as an entrepreneur.
Invest for the long term
Some Apps are altogether excellent for how they have democratized access to investing, shouldn’t be the sole output of your financial strategy. The market is volatile. Stocks rise and fall. Day traders aren’t likely to strike it rich.
Look into investments that are built to deliver wealth over a long period that can ride the unavoidable rise and fall of the markets, especially if times when the market tanks will send you into a panic. Think about the bigger picture, especially if you are supporting a family or have a partner who also works independently.
Seek out advice
Financial advice may not be free, but working with an advisor is usually value it. As with choosing a good doctor or dentist, you may need to invest some time in finding someone who best fits needs and offers value to your specific situation. The best advisors didn’t overpromise, and they will build a financial investment strategy that suits your needs.
Expertise plays an important role, especially when it comes to your financial future.