Emergency Fund for Freelancing Web Designing

Freelancers of the modern days are quite impulsive and risk-takers. Most of them like to set out on our own and often crave excitement. But little do they understand that there is a difference between excitement and practical aspects of life. Signing the first contract with a client or just by creating the first design as a freelancer, however tempting may be but it really cannot make you a businessman. Before jumping into any conclusion one thing you should have before you start is an emergency fund.

It?s very important to understand what an emergency fund is. It is a kind of savings account with enough money to cover your living expenses for a minimum of 3 months. It is a cash account that you can access without penalty.

An emergency fund is essential and which is like a boon during an emergency. It provides security and some peace of mind during the start up of your business.? You?re doing not become dependent on the vagaries of your clients and you can use that security intelligently during the time of negotiation with your clients which will ultimately give you better deals for your business.? It is basically a state of mind After all, if you know you have enough money to not work for 3 months, you can be choosy about projects, clients and money.? This emergency fund allows you to understand every client and every job offer and their real worth.

Setting up an Emergency Fund

?The Major things you will need:

? ?A bank account - preferably one which online only and doesn't come with ATM card or check book facilities. As your main aim will be saving the money and not to withdraw the money whenever you need it.

? ?Save at least 3-6 months of expenses.

It is totally up to you to decide till how many months? savings is enough for you.
?
Suggestions for Saving the Money

T here is a few ways you can save the money:

? ?Give up your indulgence for 1 month and save the money that you would have spent for your emergency fund.

? ?At the end of that month, check for yourself how much you have saved by giving up all or some of your indulgences.

? ?If you can't leave them completely, find a cheaper alternative for all those things.

? ?Try to get a better rate on your credit cards. If you get an offer for a lower interest rate than you're currently paying on your card you can save it.

? ?Make a meal plan and stick to it. If you can properly plan your meals for the week then not only you will get healthier food, but you will be able to save money.

The Keys to a Good Emergency Fund

? ?Depositing money is easy, but somewhat harder to get money out of.

? ?The fund is cash; you can access it immediately without penalty during emergency.

? ?It's in a savings account so that you can earn some interest.

? ?It has an automatic deposit set up, so that you're always saving at least a small amount.

? ?Ultimately you have enough money and you are feeling secure.

Source: http://money.ezinemark.com/emergency-fund-for-freelancing-web-designing-7d380ba4f801.html

rashad evans jon jones chuck colson death meteor showers 2012 ufc 145 jones vs evans marian hossa