Tips Set Financial for Freelancer

Being a freelance worker or freelancer is currently increasingly in demand, especially by workers aged young age millennial.

The advantage of being a freelancer is quite a lot, especially in terms of time flexibility in working.

A freelancer can also freely manage the workload. If you already have a good network work, a freelancer does not have to worry about running out of orders.

On the other hand, the freedom and flexibility possessed by a freelancer, also has a lot of risk.

For example, in terms of income stability, depends on the number of orders coming. When order a lot, earnings can be abundant.

Vice versa. Not only that, a freelance worker also does not have the usual benefits enjoyed by employees.

For example, insurance protection, tax benefits, and other benefits that support financial needs.

Thus, for freelancers, financial arrangements need to be more disciplined so that financial condition is more stable even though the income stream is not fixed.

There are four important things about the management of personal finances that need to be considered by freelancers:

1. The emergency

Every earn a living, set aside some to collect emergency funds. Large emergency funds tailored to the needs.

For example, if your status is single, then the ideal emergency fund is 3 times the average monthly expenditure.

Meanwhile, if you are married, ideally emergency fund is 6 times the average expenditure per month.

The function of this emergency fund is to help you cover emergency needs.

For example, when suddenly have to seek treatment or have to renovate the house. Emergency funds are important so that you do not go straight to debt when cash comes in.

2. Have an orderly financial record

Good financial habits are very important to run by freelancers. By having an orderly financial record, such as incoming or outgoing cash flow data, you can have a trend picture personal finance.

From such financial data, you can manage your finances more closely. For example, if you find that spending too much is spent on non-primary needs, you can immediately change your lifestyle to be more efficient.

3. Have insurance

As a freelancer, you do not have the ‘luxury’ status of an employee who enjoys health insurance benefits up to tax allowances.

Therefore, you need to complete your own protection needs, whether it is life protection if you are currently listed as a breadwinner. Also, health insurance to cover financial risks due to problems health.

Signing up as a participant of BPJS Health can be the right choice. For life insurance, try to choose pure term life insurance (term life) in order to the opportunity to get affordable premiums with the sum assured as needed.

4.Be careful with credit cards

Credit cards can help you transact finances practically. However, do not let credit cards make you become more consumer by shopping without a plan. Get used to paying full credit card bills and take advantage of interest-free installments only 0% interest alias.

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