As the years were outnumbering arithmetically, modern technology on the other hand surpassed the growth of time with an alleviated exponential growth in cyberspace which gave rise to freelancing, a well structured new frontier of employment division. Freelancing in normal enjoys the immunity from auto dependency and has the privilege of elasticity in structural working systems. Freelancers can work as per their adaptability and don't follow the predetermined statutory work which is followed in the normal course of employment. Freelancers get the complete power of anonymity regarding the deadline, position, and saturation of work. Corporates are also moving towards the concept of freelancing, as they enjoy the variety of advantages and gains through the structure of subjective delegation of work. They also get their tasks done in specified periods then and there necessarily without any strains on the investment in human resource employment.
But, discretion able flexibility is always inherited with obligations. Freelancers in common have the same long term financial plans as projected for the common traditional employees. Normal employees have sufficient enough surplus for their future planning such as retirement, future children's education, and health services. Unlike the inhouse job structures which have constant salary and incentives and funds, the credit inflow of the freelancers is speculative difficult to predict and makes them lose their prudential plan savings.
Due to the lack of regular course of employment, freelancers should focus more on maintaining a flashpoint monetary fund for zero hour situations whenever needed and also must focus on keeping an insurance policy to avoid risks. In simple, they must purport for an exigent financial aid in the match to a range of six to twelve months of monthly expenses. They also must acquire proper insurance policies after sufficient reviews and decisions. They can even focus on term insurance which offers large covers for small premium plans.
A systematic investment plan in an equity fund is needed for the freelancers for their extended life plan goals such as retirement etc., Whereas equity funds are mostly market funds which are inconsistent in their values and tend to fluctuate in the interim period whereas the long term will give cover from the inflation-based risks. The par investment value can be ascertained as the investment is made through the analysis of ups and downs in the market conditions which are possible when the equity volatility is checked in the capital inflow of the systematic investment plan.
As for the freelancers, who are dependent on their speculative income resources, the investment would be a come hell or high water situation for them to maintain an investment plan. But such a plan is not an impossible one to perform. The investment plan can be initiated by the freelancers with whatever minimum they can use to invest. In addition to the equity fund, the freelancers can also create a feeder fund. The additional investment can be done by the freelancers during the period of surplus, in the feeder fund depending upon its nature which may either be a savings account or through a liquid form. The freelancers can withdraw from their feeder fund and can invest at any period if the surplus falls from the regular investment plans.
The important part of the systematic investment plan is the process of increasing the initial investment for the reason that the initial investment itself is not enough to maintain the required yield. For example, an initial investment of Rs. 5000 in the equity fund for 30 years will give a return of the overall total amount of 1.54 crores at 12% per annum. At this point, if the initial investment is increased by 10% the overall return will be of 4 crores. To put this in the crux, The systematic investment must be increased at a certain point of time up to the level of expected saturative returns.
As above said, freelancing is one of the highly preferable ways of working for freelancers as they have their life under their control. Discipline is the primary requirement as to the freelancers to be the successful one. And the projected financial freedom can be attained when there is the discipline of focus and commitment in the maintenance and reviews of the systematic investment plans as it is common for everyone.