There are a lot of perks to being freelance. You can choose your own hours, your own workspace, and even your own clients.
But as any freelancer will gladly tell you, it’s not all sunshine and roses. One of the most difficult things to come to terms with when working as a freelancer is the uncertainty around your future. A good month can be followed by a dry month, or, as we’ve found out this year, extreme circumstances can flip your whole world upside down in an instant.
When setting up on your own without the safety net of an employer, it’s important to not only to plan for now, but also for your future.
Get on top of your finances
Getting on top of your finances should be a top priority for any freelancer. It’s important to set aside your tax so that you don’t get any nasty surprises at the end of the tax year, and you’ll also need to keep on top of your invoices and expenses. Thankfully, there are now a number of online accounting apps and budget trackers that can help you do this, or you can do it the old-fashioned way by hiring an accountant.
In addition to the obvious, it is also essential to build an emergency fund to help you cover any slow months or periods of sickness. It’s all too easy to overlook the importance of an emergency fund but it is something that every freelancer should have if they plan to remain freelance in the long term.
As we’ve all just found out, life can be very unpredictable, which is why having insurance can be very handy. Some of the insurance products to consider as a freelancer include income protection insurance, life and critical illness insurance as well as public liability insurance. Having these products in place can cover you against all kinds of eventualities, should you be faced with illness, legal action or theft.
Think about your retirement plan
Without an employee pension, you’ll need to take your retirement fund into your own hands. An obvious place to start would be to open a private pension, but long-term investments such as stocks, shares, property and Forex Trading can also help you to diversify your income.
Invest in yourself too
Last but not least, don’t forget to invest in yourself. As the person behind the business, you need to ensure that you have the right tools to do your job, and this also means taking the time you need to look after your mental and physical health. Start to see yourself as the valuable asset that you are and invest in yourself the way you deserve to.