5 ways to have sufficient savings as freelancer

Everyone needs to save. There are no two ways about it. However, it is especially critical for freelancers to have a healthy corpus to fall back on. With a bit of financial flexibility, freelancers can enjoy the freedom of choosing their assignments and being their own bosses. However, the trade-off is that they do not have a fixed stream of income, and building their savings is one of the fundamental ways to not only survive but thrive and have a financially secure future.

1. Sail through slow months

One of the most significant downsides of freelancing is that there is rarely a steady rotation of clients. Some months you will see so much work that you would be working day and night, while there will be a dry spell in other months. While your income is sporadic, your expenses are not. You still have to pay rent, buy groceries and meet other expenses. Having robust savings can ensure that you are not under stress during slow months. Whatever your shortfall, it can be fulfilled through your savings.

2. Pick projects that excite you

Having to take up any projects because you need the money is not a good place to be in. When you have sufficient savings built up, you have the liberty of picking only those projects that are within your core expertise and that excite you. One of the biggest reasons freelancers choose to freelance is to have a say in the kind of work they do. If you do not have that option, then the purpose is lost. Hearty savings give you the freedom to say no and move on.

3. Ensure work-life balance

There is no luxury of paid leave with freelancing. If you are not working, you are not earning. But this does not mean you should not take vacations to recharge. Having a savings pot earmarked for such a hobby or passion allows you to cover for your trips, as well as counter the lost income for the time period. You can go on vacations or even take self-care days with peace of mind and strike a healthy work-life balance.

4. Invest systematically

Savings can ensure that you invest and spend in a disciplined manner to achieve your life goals. Whether it is the short-term goal of a vacation, the medium-term goal of buying a car or building a contingency fund, or the long-term goal of buying a home or retiring comfortably, a corpus can make everything possible. A disciplined savings approach allows you to invest systematically each month in various financial instruments such as mutual funds' SIPs and take a goal-based approach. You can budget for multiple needs and stay on track even if work doesn't pan out as you expect in certain months.

5. Create wealth

While freelancing is wrought with financial unpredictability, a savings account and its associated features give you all the tools to make the most of your resources. The account provides you with a comprehensive view of income and expenditure, making budgeting easier. You can set up standing instructions for making and receiving payments which save your precious time from mundane tasks. The availability of various digital mediums allows you to expand your business across geographies. From investing in bank deposits, mutual funds to an equity trading account, you can achieve all your dreams with savings and a savings bank account.

Wrapping up 

A savings bank account is critical to succeeding as a freelancer. An IDFC FIRST Bank Savings Account is the ideal tool to grow your savings. It is a one-stop solution to manage all your finance management needs. With monthly interest credits on your savings balance, it allows you to earn more with the power of compounding. Moreover, it provides a superior digital experience by making banking accessible via mobile app and internet banking. It also offers pre-approved loans and makes investing easy with a consolidated dashboard. Take a step towards building a financially secure future for yourself and your loved ones. Open an IDFC FIRST Bank Savings Account today. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.