South Africa’s current economic woes have been a reality check to many professionals reminding them the need to have that emergency savings account. Independent professionals were the most affected as they didn’t have enough income coming in due to lockdown regulations. Although it is hard to save money with an unpredictable income, it’s always better to save whatever little you have.
In this blog, UASA your trusted union have some tips for you on how you can improve your saving technique and make financial sound decisions for your future and career.
Put a bit of each pay check aside
Create a personal invoice book where you record all the payments that you receive from your clients. Before you use any of your income, split your money into several accounts including retirement, savings, emergency and a standard account for your day to day expenses. Apart from your main emergency fund account, you must consider a short-term emergency fund which can allow you to survive for at six months without touching your main emergency account during the dry period where clients might be scarce. This account will help you to pay your car, mortgage or rent and other personal expenses.
Keep track of your business expenses
Always keep track of each and every small detail on expenses related to your business. This can help you to write it off when you pay taxes. This can be your phone bill, computer (internet connection), travel to and from events or workshops, writing and editing classes. If you keep tabs on your business’s finances then you might just be able to get a tax return during the tax season which is a good thing for your business as a professional.
Have multiple streams of income
As a freelancer you already know that you solely depend on clients to survive but what happens when clients are hard to come by? This is when you must consider a second source of income. This doesn’t necessary mean working many jobs every time but just building a stable source of income. You can consider teaching English, editing, designing, making YouTube videos or buying a property that you can rent out to people and get money.
Eat at home and take care of yourself
Avoid spending a lot of money on ordering food every night and rather cook at home and save. If you have a busy schedule ahead of you consider preparing your meals ahead and save all the extra cash. While at it, taking good care of yourself will also help you towards your finances. Taking care of yourself will help you to avoid a number of stress-related medical expenses. Staying healthy will keep you feeling productive and motivated at your work. Just because you love your job, it doesn’t mean you don’t deserve any down time hence, remember to take some time out and rest.