2 articles Tag debt

Freelancer? Find Out How to Add More Stability to Your Family Finances

If you are working freelance and don’t have a regular set amount of income, balancing the books might be challenging for you. There are some things that you can’t control each month, such as your income, but you can always shop around and wait for larger purchases to make sure that you can afford them without getting into debt. Below you will find a few tips on managing your freelance budget better with a family.

Image via Anete Lūsiņa@anete_lusina

Have Long Term Plans

Most people working as a freelancer tend to live from one month to the next. You will need to focus on your long term financial plans and change your attitude towards money. Whether you would like to save up for a family holiday, save up enough for a deposit or moving house, you have to create a bucket list of things to do with clear deadlines, so you can do things in your business that will help you achieve them.

Stay Flexible

One of the things you need when trying to manage your freelance family finances is flexibility. Not all the bills will be paid on time, and you might have to face delays when dealing with project work. This means that you need to have a flexible budget and allocate money for paying your bills first. If you have funds left over for a weekend away or a day out, you should plan this at the end of the month, but if there isn’t enough, save it up and add it to next month’s budget and plan something bigger,

Save for Holidays and Larger Purchases

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As a freelancer, you will need to make sure that you are not stretching too far, as your income for next month is not guaranteed. This means that you have to allocate excess money for larger purchases every month. Have a minimum saving plan to stick to, but if you have a particularly good month, put more toward the savings to have a rainy day fund.

Protect Your Finances

One of the things people forget when starting to work freelance is protecting their finances. It is crucial that you have an income protection for falling ill, as you are likely to lose your source of salary for a while. At the same time, you should ensure that the future of your family is safe, and get in touch with estate planning companies like Fielding Triggs to save money on wills and asset protection.  

Ensure You Get Paid

One of the uncertainties of working as a freelancer is when and whether or not you will get paid. You can eliminate the risks by consulting with a legal company and making your contracts legally unquestionable. Even if you are a freelancer, you will need to get paid for the work you do.

Managing your finances as a freelancer might be challenging. Make sure that you have a detailed financial plan and a rainy day fund, so you can look after your family and your financial future.

Dead Set on Resetting Your Debt…

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For a lot of us, being debt free is a rarity. Most of us have difficult financial situations to get out of, such as a credit card or a mortgage to pay, as well as other debts like student loans. So how can we find ways to build up our wealth and focus on our financial goals without it impacting negatively on our overall debt which will leave us swimming in a continuous cycle of ill finances?

Prioritizing Your Debt

This will be the key to addressing every aspect of your outstanding balance. You need to evaluate each aspect of your debt to determine what type of debt you have, such as whether it is “good debt” or “bad debt.” Good debt could be something like a loan for starting up a business. So you need to ask yourself if the debt is good or bad by determining if the debt is temporary and if it is worth it.

Debt Consolidation

There are many ways for you to consolidate your debt now, and this includes things like getting a balance transfer to pay off your credit cards or a debt consolidation loan. But getting the right loan opens up a myriad of questions too. There are so many different options available from balance transfers to long term or short term loans, so which one is best for you? The way to answer this question is to calculate the interest rates for each option and compare this with the repayment terms. If you can get a 0% offer for a long period of time, this will be a good option as you will be paying so much less in the long run.

Paying Your Biggest Debts First

Every item of debt is difficult in one way, shape, or form, but one of the best ways to tackle this issue is to pay off the most pressing debts or the most painful ones. For a lot of us, it’s not necessarily the largest amount of debt that requires immediate payment, it could be a loan from a family member that has been weighing heavy on your mind for many years, so it may make a lot more sense to pay that off first before something like your credit card. A big motivating factor in paying off debt could be to personalize it, and it can be a big weight off your shoulders meaning you are approaching the rest of your debts with a fresh mind.

Don’t Add To Your Debt!

This is probably the biggest life lesson for all of us. You may feel a sense of accomplishment by paying off your credit cards and loans. But if you don’t change your spending habits then you will get back into the habit of accumulating debt, so you need to avoid the most common mistakes that will keep you in said debt, which includes your attitude towards money.

It is possible for us to live a good life without mounting debts. But as long as you have a plan in place for what you are going to do with the money you save once your debts have been paid off, like setting up standing orders for money to go into savings, you are beginning to readdress your whole attitude towards how you spend and how you tackle it.