Even then, insurance and financial planning should not be neglected.
Five experts in financial advisory and wealth advisory share 12 financial planning tips for freelancers to secure their financial future.
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| Financial planning tips for freelancers |
1. Set up an emergency fund of 6-12 months of expenses
- the more uncertain the income, the higher the buffer needed
2. Review medical insurance and healthcare insurance needs
- purchase private health insurance, especially important given that there is no corporate insurance schemes to fall back on.
3. Manage outpatient medical costs
- self-employed need to look for ways to reduce outpatient healthcare costs without employee medical benefits
4. Review life insurance needs
- these need not be expensive, look for income protection insurance, term life insurance quotes, cheap life insurance quotes online, or get the professional help of a qualified Financial Adviser or Insurance Agent
5. Minimize liabilities
6. Make regular CPF contributions
- especially if you are not a savvy investor, make full use of the CPF schemes
7. Top up CPF Special Account
- if you can afford it, benefit from the compounding effect of the higher CPF Special Account interest rate
8. Set up a budget and savings plan
9. Build up passive income
- build up multiple sources of income, including passive income. Through rental income from property investments, dividend yields and payouts from investments in stocks, bonds, unit trusts, annuities, and staggered insurance payouts
10. Stay relevant
- invest in your own learning and development
11. Retain profits
- for contingencies and expansions
12. Network
- to suss out business opportunities
Read the full article at https://goo.gl/vUoBn4
Disclaimer
You may also be interested in the following:
Singapore Insurance Planning Frequently Asked Questions
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