The Smartest Thing Any Freelancer Can Do With Their Money

It is always a good idea to have a certain amount of money aside as a backup to use in case of emergency particularly when you are a freelancer.

This habit encourages you to beat normal things like an abrupt loss of a client or late payments.

The idea of an emergency fund means to have at least six-month worth of your expenses during an emergency, that can be your rent or mortgage, car payments, food costs, debt payments, and every payment you do in a month.

It’s always necessary to have an emergency fund, whether you’re in the gig economy or not. Moreover, If you are working as a freelancer, it can’t be neglected.

A survey by Bill.com revealed that 45% of freelancers weren’t being paid on time. For a freelancer, there is always a risk of no-payment at all or contract cancellation by the client.

Another positive aspect of having an emergency fund is that it will save you from unwanted or extra expenses you do. To build an emergency fund requires planning and discipline.