9 Mar 2011

Managing unstable income

Unstable incomes can mean that sometimes get is but a regular basis, sometimes small but often, or sometimes even great, but rarely. However, have no fixed income as a freelancer does not mean you can not have fun, right? Like having his own company, a freelancer sued clever open employment for herself, determining monthly salary and think about how to 'smoke billowed kitchen equipment company. " The key is financial management. There are strategies for the financial condition remains safe and in control. Here are tips how to manage irregular income of a freelancer:

1. Record Spending. Want easy, just use a notebook to write down how much money is spent every day. Want more organized, there was nothing wrong with using free computer software that allows you to calculate. When finished, try to check the details of shopping today. Sure, you can know what the actual expenditures can still be reduced and how much money left over that still exist. That way, you can avoid running out of money prematurely.

2. Separate Accounts. One for personal accounts and one savings untu. Save 30% for compulsory savings that abstinence is used and input into the savings. It was prepared for unexpected expenses, for example, while there is no project or a late payment. The rest enter into a personal account to pay bills, everyday expenses and spending.

3. Pay Bill In Early. If you have an obligation that must be repaid each month, such as insurance or credit cards, pay off immediately before you plan to spend a lot of things. Do not let bills pile up while the money has been depleted because many unused. Paying bills at the beginning allows you to know how big 'net wealth' that you have in the account. Use a personal account to pay it off.

4. Separate Basic Needs. Not all freelancers can work at home. So, counting dressed and ate a lot of transportation money should be spent every day, still needed. Accumulate this spending for a month. Store with a special envelope and take in accordance with the quota per day when I want to use. Let it safe to avoid running out of cost when the project was not completed.

5. Expand Project. For freelancers, the more projects the more fun. That is, the more revenue. But it must not accept the offer as well, taking into account the estimated amount of expenditures and revenues. If the 1-time payment of this project, valid for 2 months, you should think about whether the project is profitable or financial detriment. If there is no choice and this is the only income, you can push the budget revenues, expenditures exclude spending, and decrease the percentage of compulsory savings.

6. Insurance. In contrast to the facilities acquired by permanent employees, various allowances such as employees' social security or health insurance is not obtained by freelancers. Although the condition of the body in good shape, you should not ignore this. Because, the condition of one's body no one knows, right? Both have now suddenly deteriorate tonight? One of them by having insurance. Choose a trusted insurance companies, which are well known and has a good reputation.

7. Pension Fund. When you decide to work alone, then you need to set up retirement funds early. Take a long term investment you can enjoy in the old days.


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