In years past, people only dreamt of being able to earn a sustainable income while working at their own time and at their own homes. But what once was a dream has now become a reality for some.
Thanks to the success of the digital economy, freelancing has now become a common and popular career path. As a freelancer, you have the freedom to choose which projects to take and you are also in control of your time. Not to mention, you personally set the price for your services.
Of course, like any job, there are downsides, too. One of which is that you compute and file your own tax when you do freelance in the Philippines. There’s also no steady source of income, so saving for the future can pose a challenge. But we’ve got you covered on that end!
Listed below are some money-saving tips that are sure to help freelancers save for the future.
Closely Track Your Expenses
Before you can start saving money, you first need to establish a budget. To do this, you need to closely track your expenses. For at least three months, note your spending habits. Include everything you spend your money on including the amount.
Don’t just focus on your fixed expenses – rent, bills, taxes, insurance and the like – but include your flexible expenses or the stuff you don’t necessarily need but want.
After a few months of tracking your expenses, you should have a workable average that you can then use to set a budget.
Adopt the 50-20-30 Rule
The 50-20-30 rule dictates how you should spend your income. Financial experts made this rule to help people manage their budget.
Ideally, 50% of your income should be enough to pay for your fixed expenses. 30% is allocated to your flexible expenses. Finally, 20% goes straight to your savings account.
Now, you don’t have to stay true to this rule. You can divide your income however you like, but you have to make sure that you split them between your fixed expenses, flexible expenses, and saving.
Accept All the Projects You Can
As a freelancer, you are capable of choosing what projects to take, and you should take advantage of that. Accepting a lot of projects will guarantee that you have a constant source of income which is important if you want to have money on the side.
However, don’t overwork yourself. The point of freelancing is you won’t have to work yourself to the bones just to live a comfortable life. Always take your skill and current workload into consideration when you’re evaluating a project.
Key Takeaway
Freelancing is slowly and steadily flourishing and gaining popularity in today’s economy. Despite the fact that you have to manage your own tax when you do freelance in the Philippines, more and more people still aspire to become freelancers.
However, it’s harder to manage your expenses when you don’t know where your next paycheck will come from – which is a common occurrence for freelancers. The reality is you don’t have to do anything special if you want to save money!
You just have to track your expenses, budget your income, and maintain a steady source of income by accepting multiple projects. By doing this, you will be able to have enough money for all your expenses and some extra for your savings.