How freelancers can secure finances, embrace freedom

Freelancers face uneven income, making it vital to budget, save and plan for the lean months

- Anagh Pal

Freelancing wasn’t something Kanika Khanna, a communications consultant, had planned. It unfolded naturally as the global job market evolved and flexible work gained traction.

For the 45-year-old, freelancing has been both rewarding and challenging. It took her time to get a firm grasp of financial planning, but one lesson stood out: saving is the real game-changer. She now looks for better-paying projects, explores new skill-based opportunities, and builds alternative income streams to maintain a steady emergency fund. Freelancers can follow these strategies to achieve lasting financial security.

Maintain a safety cushion

As a freelancer, you do not enjoy the luxury of a steady paycheck, so emergency fund isn't all about coping with unexpected expenses—it's your lifeline during periods of income drought.

The most effective way to build it is in layers. “The first step is to ensure that whatever income you generate through your gigs, put away 3-4 months worth of your living expenses from that income into a liquid fund or high-interest savings account that you can withdraw instantly,” said Shruti Jain, chief strategy officer, Arihant Capital Markets.