Financial Planning Tips Freelancer

Diposting oleh pak yons on Minggu, 23 Desember 2012

MAKE A financial plan and budget is a great way to organize your financial life. However, for a freelancer with a fluctuating income, it is certainly a challenge.

The situation is quite difficult to deal with because the income of a freelancer can not be predicted. However, there is still a possibility of creating financial stability with the following steps:

1. Analyze how much money you need to make ends meet every month. Sum of all costs rent, meals, personal care, insurance, cable tv subscriptions, credit card bills, and so forth. Bring a small notebook to write down the details of expenditures.

2. Open a savings account for each category of expenditure that has been boxed-boxing, and deposited the money into any category that receive income. If you have extra money, gave away into each account. Do not spend money on things that are not essential to successfully meeting your savings targets for each account. Suze Orman advised to have savings for living expenses for at least eight months, because you depend on freelance income. In fact there is nothing wrong if you target savings for a period of 12 months.

3. Keep a written record of the amount of money coming in and when you receive it. Over time, you will be able to estimate when the prosperous period'' when'' and'' financial period began to drag.'' The move also gives clues on when you should be looking for additional freelance work.

4. For people who have a steady income every month, pay off credit card debt as quickly as possible is the most sensible step. However, it is not the case with freelancers. Better, make sure you have sufficient savings for living expenses for eight to 12 months. If revenue was sluggish, you can still make minimum payments and thinking about simapanan money in savings.

5. Generally, people are advised to pay off credit card debt with the highest interest first. However, it makes more sense for the freelancer to pay off credit card bills lowest first. Every time you manage to pay off the debt in full, it means one less bill each month to think about.

6. If finances this month was sluggish, take only the amount of funds needed from savings. Also, it would be better if you could cut certain expenses that month.
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