Freelancer’s money management troubles, simplified!

Self-employment has been the choice for billions across the world, be it through business ventures, trading, or providing services. As organisations open up to third-party service providers, the number of freelancers and gig workers has further swelled in recent years.

If you join forces with the freelancing population, you will enjoy attractive flexibility in your work life. However, you are no longer part of a payroll, so money management becomes even more vital. By managing finances smartly, a freelancer can enjoy both flexibility and financial independence in life.

Before delving into a few useful tips on money management for the freelancer, let us look at scenarios that make it important in the first place.

Why money management is important?
 

Here are some of the typical challenges in a freelancer’s life that make smart money management important –

1. Income uncertainty–

There are no fixed salary credits at the end of the month. Your income becomes proportional to the projects and work you deliver.

2. No more perks–

You no longer save passively through an employee provident fund. Besides, you don’t have corporate health insurance coverage, paid leave benefits, leave travel allowance, and so on.

3. Work unpredictability–

Your clients may discontinue abruptly, or the project flow may change constantly. You may face lean periods with very little work.

4. Financial management–

You will have to assess and carry out your tax planning. The same goes for your investment planning as well.

Once you identify these challenges, you can adopt the hacks that will make money management easier.

Top tips on money management
 

Here are a few tips for freelancers on how to manage finances –

1. Treating it like a business–

Treat your freelancing profession like a business. Maintain a separate bank account and identify the freelancing expenses.

2. Accounting and budgeting–

Keep track of your freelancing income and expenses and record them meticulously. Pay yourself a salary and meet your personal expenses. Maintain a budget for your personal and freelancing expenses. For better income management, set an earning target for yourself and try to achieve it more often than not.

3. Building a buffer–

Set aside portions of your income from high-earning months and build an emergency fund with it. This fund will help you with money management during lean months or financial emergencies.

4. Monitor tax liabilities–

In a regular job, the tax deductions at source automatically manage your income tax liability. As a freelancer, you can assess your income tax regularly (say, quarterly) so your year-end tax burden doesn’t overshoot.

5. Saving and investing Financial planning–

   is incomplete unless you include your plans to save and invest. It will take care of your retirement planning and generate an alternate source of income through your investment portfolio. Things you can do under this activity include –

   1. Identify your retirement corpus amount and start investing towards it
   2. Design an investment portfolio as per your risk appetite and return expectations
   3. Monitor your expenses and look for cost-saving measures so that you can save and invest more

To maximise your savings through expense monitoring, you can also select a suitable payment option. The FIRST EA₹N Credit Card by IDFC FIRST Bank is an obvious choice for freelancers.

Introducing the FIRST EA₹N Credit Card for better money management
 

When it comes to money management, a virtual credit card like the FIRST EA₹N Credit Card addresses a lot of questions and concerns. This includes –

1. Easy to obtain–

No minimum income thresholds, no salary slips. All you need to get a FIRST EA₹N Credit Card is a fixed deposit (FD).

2. Easy access to credit–

As a freelancer, you may struggle with managing your expenses due to irregular earnings. With the FIRST EA₹N Credit Card, you get a minimum credit limit of 100% of your FD value. Open an FD with an amount of your choice and get the credit limit you need.

3. Earn interest on your FD–

While you enjoy interest-free credit for up to 45 days, your FD earns interest of up to 7.25% p.a. making it a worthy investment.

4. Earn cashback on all your spending–

The FIRST EA₹N Credit Card offers assured cashback, up to ₹500 per month, on all your spending. Besides, you earn cashback with each of your UPI spends – 1% cashback when spent via the IDFC FIRST Bank Mobile App and 0.5% when spent through other UPI apps. Cashback is a great way to save on your credit card bills every month.

5. Easy to use–

FIRST EA₹N Credit Card is a virtual credit card. You can link it to your favourite UPI app and pay online, at points of sale (PoS), through a QR code, etc.

Along with ease, the FIRST EA₹N Credit Card ensures that your money management goals are on track. It does so with features like –

1. Enjoy low interest rates on your credit card, starting at just 0.75% per month

2. 1% cashback on UPI transactions via IDFC FIRST Bank Mobile Banking App

3. 0.5% cashback on UPI transactions done via other apps like GooglePay, PhonePe, etc.

4. 5% cashback on EMI conversion made within 30 days of card setup

5. 25% discount of up to ₹100 every month on Paytm movie tickets

6. 20% discount available on over 1500 restaurants

7. Personal accident cover of ₹2 lakhs, lost card liability of ₹25,000 and complimentary roadside assistance of ₹1399

Meeting freelancer needs
 

With tailormade features for freelancers, money management becomes easier with the FIRST EA₹N Credit Card. Enjoy an assured credit card with a minimum 100% credit limit of your FD and easy everyday use through UPI, only with your FIRST EA₹N Credit Card!