Imagine you plan to buy a house or have children. This is especially poignant considering the irregularity of paychecks when fulfilling contract work.īeyond your monthly expenses, financial planning helps you to build a stable future. While workers who are full-time employees of a company often receive benefits and resources to work with, freelancers need to rely on their own financial planning to cover these costs. Simply put, financial planning is a long-term strategy that helps you cover your current and future costs and mitigate the impacts of unforeseen changes.įinancial planning not only helps you to cover the expenses of fixed costs (like your rent or utility bills), but it also helps you to manage the less attractive elements of freelancing.Īccording to freelancers who participated in Fiverr’s 2020 Annual Freelance Economic Impact Report, the top three drawbacks of being an independent worker are irregular income, a lack of benefits and having to provide their own tools and equipment. What is financial planning and why is it important? StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here In this article, I will share the top financial habits that will help you achieve this balance. But if you have a good financial planning in place, you can thrive as a freelancer and enjoy stable finances at the same time. You’ll need to cover your own benefits, build an emergency fund and plan around inconsistent income. While freelancing comes with advantages, such as flexibility and independence, there are also plenty of drawbacks. While 48% of new freelancers view freelancing as a long-term career choice, this is only realistic if you have a long-term financial plan.
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