Money management for unstable income earners

Credit: Pixabay

By: MJ Gonzales | Executive Chronicles

During the non-peak or drought days of going solo, whether as a small-time entrepreneur or freelance worker, you may think it’s better to become an average income earner. At least those employees who regularly receive payments, can easily adjust and cope with their money problems than you. The truth is financial instability is not a myth, it can happen to anybody even from full time regular employees to freelancers. It’s how well you are prepared, saved and established in your income sources that make you financially fit.   Here are the few basic tips to handle money if you have unstable income:

Be a budget buff.  There are days that you earn a lot than regular employees. Thus, it’s tempting to feel awesome and splurge your money. If you’re not intrinsically thrifty, at least stick with a certain budget. You deserved a pampering reward for your hard work, but not to the point it’s all about luxury. Save that luxurious treat when at least you finally have stable income.

Try to become a “Slasher.” Have small cushions in the form of direct selling and simple consultancy works that you can handle whether you’re busy or not with your main job. Your earnings from direct selling may not be that big to pay your total monthly allowance, but enough to cover your house rent or weekly grocery expenses.  Remember that it’s better to have a small sideline is better than no plan b at all.

Don’t rely on just saving. This is tricky not only for freelancers, but also for regular employees. Save enough to cover your monthly obligations, but don’t park your money too long in the bank. As much as possible, try cost-averaging or conservative investments than banking all your money.  Inflation and taxes eat the value of your money, and you’ll feel that when you need it the most. This tip is not recommended for those in their early phase of going solo or not earning that much just yet.

Credit: Tatiana Lapina/ Unsplash
Credit: Tatiana Lapina/ Unsplash

Upgrade smartly.  If not slowly, at least smartly upgrade your work paraphernalia when you need it.  Arguably, freelancers and startup entrepreneurs have no choice but to become tech-savvy since their gadgets or equipment are their weapons. However, it doesn’t mean they have to spend a lot for those things.  They can look for places that legitimately sell high tech products, but for cheaper price.  Gilmore along Aurora Boulevard (Quezon City), Greenhills Shopping Center (San Juan City), and Raon Street in Manila are must visit for those thrifty buyers.  Meanwhile, Hidalgo Street in Quaipo Manila is a shopping haven for photo and video camera enthusiasts.  If you have friends or relatives in Dubai (UAE and Japan, you can ask them to buy for you as gadgets there are latest and affordable.