Financial instability is one of the main problems of freelancers and self-employed professionals. In order not to be left without money, you have to plan your budget, create a financial safety cushion, calculate supply and demand – i.e. project load. In general, everything like in a real business.
To get the skills you need, take a financial literacy class. I’ve gathered the best paid and free courses, as well as cool books, videos and podcasts. Get better, get better and earn more!
What is financial literacy
Financial literacy is the knowledge that helps you make good decisions about all things money: spending right, saving safely, and earning more.
What financial challenges await those who have found themselves in freelancing?
“It’s empty, it’s thick.”
There is no money at all if there are no projects, and vice versa, a huge load of projects and a lot of income to your account. The human brain really dislikes instability, so this situation makes us nervous and makes us worry if we’re going to be left with no money at all. Many people burn out quickly due to regular overload, productivity drops, and money becomes scarce again.
If you take a vacation or sick leave, you’re out of money
That’s why many freelancers continue to work even with a high fever or having gone on “vacation”. This is probably what some freelancing courses warn us about, showing us pictures of people with laptops on the beach.
Social insecurity
Not every freelancer pays taxes, insurance payments and pension contributions. And this is fraught with all sorts of trouble: from fines to more serious problems. That is why it is important to know how to make your activity legal, what taxes to pay and how to ensure a trouble-free old age.
Why do you need financial literacy?
Not to become rich overnight. Financial literacy gives confidence in the security of the future, reduces anxiety and allows you to live better. Statistics show that 55% of Ukrainians have no financial cushion at all. This approach to finances is dangerous for life. You can always change something for the better, at least take free courses and understand why exactly you have such a relationship with money.