In simple words, investment is an effort to invest in getting profits in the future. There are so many goals that can be achieved if we invest our money.
The pandemic has indeed succeeded in taking lives, jobs, and valuable time from humans. Many people have lost their jobs because of this pandemic without having any investment.
After losing their jobs, many people are overwhelmed with their daily needs. This is because they do not have an emergency fund that can be collected during their work.
They prefer to spend their salary rather than secure it for investment or saving. Finally, when faced with times like this, they find it difficult to make ends meet and eventually become dependent on assistance provided by the government or those who are still affluent.
Like the case of this pandemic, for example, when we have invested our salaries in recent years, it is very likely that when faced with difficult times like today, at least we will not starve. All our basic needs will be met.
Maybe there are still fellows out there who have not been involved in investing. My advice as to the author of this article immediately starts investing and learn how to invest well. Don’t waste your salary.
Nowadays, we’re blessed to have so many resources on the internet that can easily help you learn more about investment, how-to, and where to start.
If you have decided to start learning to invest, there are lots of challenges that you will encounter. One of the challenges that caught my attention was how to support when our salary is not fixed in value or when the job is commonly referred to as a freelancer.
If you are an employee of a company, you will be paid a fixed amount according to the salary value that you and the company have agreed. If you want to manage the salary, you just have to allocate it with the portion that you think is suitable.
Now the real question is, how to invest your salary if you’re a freelancer? So, here are six investment tips for friends out there!
1. Pay off debts, installments, and other basic needs first.
In essence, Young Business friends can invest after basic needs are met, debts and receivables have been successfully covered, and all installments will be paid off. After that is all done, Young Business friends can start investing. Remember, the investment does not need to be a fantastic amount; the most important thing is routine.
After you allocate the salary you have received for basic needs, you can use a few percent of your young business friend’s salary to invest.
2. Minimize expenses
These tips are accurate for all workers, regardless of whether the salary is fixed or the compensation is not fixed. Minimizing expenses is indeed one way to manage finances well.
For you guys who work as freelancers, it is more advisable to reduce spending on things that are not necessary from now on.
When you did it, the money previously used to buy many unnecessary clothes can be invested or used for other purposes.
3. Looking for other sources of income
Freelancers are the type of workers who earn money from work offered by clients. If there are no clients who offer work, then the freelancer doesn’t get money.
To overcome the financial crisis that occurs when there are no clients, a surefire step that a freelancer can take is to spread their wings to find other sources of income. You need to be able to learn additional skills that are considered to generate money to overcome the crisis that occurs when there are no clients who offer jobs.
4. Investment funds are allocated to several instruments
If young business friends have started investing, it is highly recommended to give their funds to several investment instruments. This is done to reduce investment risk.
For example, if you have an investment in the stock market, that is high risk. Spread your Young Business friends’ investments to safer instruments, such as gold.
5. Prepare an emergency fund
This is an option, which can be selected or not. An emergency fund is a fund that can be used if something unexpected happens.
If you have previously raised an emergency fund, then the funds can be used to meet your needs until you get another new client. The investment you have allocated to several instruments can be used as an emergency fund, but it would be better to raise your emergency fund.
Maybe a lot of people look down on insurance. If you have health insurance and life insurance, if something unexpected happens, the insurance can cover hospital costs or during an emergency.
Once again, insurance does not only apply to freelancers; whatever work you are doing, you should immediately have insurance.
Even jobs that have irregular salaries can make investments and can even exceed other workers. It all depends on the will of each.
If you want to invest, Young Business friends who work as freelancers must be competent in allocating the money they get and do the six tips above. Hopefully, the tips above can be helpful for all young business friends.
Source: Bisnis Muda ID
Flexgigzz is the Asia leading marketplace for freelancers service and together with SOHO Learning Hub which is an online platform for short courses and both of them aims to be the number one provider in Asia. For growth industries such as E-Sport Authority which is dedicated to providing independent media coverage to all E-Sport News related from around the world and for the art world, there is Atelier Auction which is an investable art auctioneer and being in the art scene for decades