6 Things a Freelancer Under 30 Needs to Know About Finances

For many young people, the “twenty-something” age is the best excuse for being financially careless and making poor decisions. Meanwhile, research on the Polish loan market shows that more and more people under 30 are indebted .

Although the “record” age is difficult to treat as a determinant of duties or the level of responsibility for yourself, “30” is a good time to organize your finances and think about the decisions you make.
So what should a 30-year freelancer know about financial planning?

1. Buy or borrow?

The first thing that comes to mind in the context of such a question is, of course, buying or renting an apartment. With a small share of rental in the total housing market and rental fees comparable to the installment of a mortgage, for many people the answer is obvious. The decision to buy an apartment is one of the most important in life – a mortgage means long-term, long-term conventions.

“Buy or rent” is a question not only about the house. It may also apply to a car (public transport or a bicycle plus occasional car rentals or buying your own) and work tools (buy a license, look for free equivalents or subscribe).

2. Life from the first to the first

“Too many months until the end of the money” is a picture we all know from our own experience or from the observations and stories of others. It doesn’t mean, however, that it has to be normal for you too.
For some people, the solution is to use credit cards, which “virtually” increase the amount of available funds, which in turn means the need to regularly pay off the card with interest.

What to do to avoid a spiral of credits, loans and repayments when you have a limited budget?

• start by auditing your expenses and see what you are actually spending your money on
• cross out expenses that are not needed
• if you are still missing some “up to the first” amount, look for extra work – freelance job sites like useme.eu also have sections dedicated to students
• to get out of debt, start with paying off the smallest obligations – the total amount of debt will decrease, and so will the interest

3. “Emergency Fund”

why a freelancer should have his or her “crisis fund” and take care of financial security . Life is not very predictable, and even with the best planning, things can go wrong: from illness to failure of work tools.

The amount of your emergency fund is an open question and depends on your earnings, but the safe amount is assumed to be the value of your three month income . At the beginning, assume the value of PLN 1,000 and try to increase this amount regularly.

4. Diversification of income

Financial security isn’t all about saving – we all know that constantly denying yourself pleasure and tightening your belts in the long run is frustrating.

To avoid this, increase your professional activity and look for additional work. It doesn’t have to be another part-time job. Fulfilling two additional orders per month does not require a lot of time, but it can increase your financial possibilities.

Consider what type of services you can provide, in what field you have knowledge or useful skills. Maybe there is an industry in which you have long wanted to try your hand at but lacked the skills? What you learn while completing additional assignments may turn out to be the seeds of your future career!.
On freelance job sites such as useme.eu , you can see which types of services are most frequently sought after.

5. Self-cooking

Sounds funny? Check how much money you spend on food in a month – bought in stores and ready meals eaten out in the city. Food is an expense category that you simply can’t ignore.

Cooking yourself is always cheaper and more profitable than dining out. For the equivalent of one dinner in your favorite bistro, you can prepare several home-made meals, which also works in terms of time. It takes two hours to prepare lunch for four days – you have three afternoons free and you save money.

It is worth learning to prepare the simplest dishes and gain control over what you eat. In the era of blogs and culinary television and celebrities, you will have plenty of inspiration.

6. Choosing a partner

Money is given as the most common cause of divorce in Poland, so if you found or found your dream partner, it is worth making efforts to ensure that your relationship lasts.

When a partner has a serious debt relationship or a bad credit history, this is not a minor detail to ignore. The other party’s finances always have an impact on the relationship, including the ability to buy a home, start a family, and other wholes that are important to you.

So it’s worth talking about finances before the sacramental “yes” is given. How do each of you feel about money? Do you spend money similarly? Do you think about securing for the future, save for retirement? How do you deal with impulsive purchases?

6 things freelancers under 30 need to know about finance – summary

Remember that money is a tool, not a goal. Do you think that you are not suitable for managing your own finances or that it is beyond you because your environment lacked good models of financial responsibility?

One of the things about growing up that you might not have heard in school is that if he doesn’t follow common sense about the things above, no one will do it for you.
Nobody can force you to do this, and you shouldn’t expect a quick reward for following certain rules, but the consequences will be primarily for you, your sense of security and your comfort.