There is no denying the fact that I enjoy my career as a freelance writer. That being said, many people believe that it is a career path that does not require much time and effort. Of course, anybody who has ever worked as a writer is well aware that this is not the case.
As of late, I have been working 10+ hours per day. In fact, I have been working so much that I have only made one post on this blog over the last month. Most of my “work time” has gone to client projects, as opposed to my own.
Fortunately, I have been able to maintain a solid balance between my work and personal life. Despite the fact that I am working quite a bit, I am still able to spend time with my family and on my hobbies.
Although I have done a good job maintaining a good balance, I speak with people all the time who are spending so much time advancing their career that the rest of their life is nothing but a blur.
If you find yourself in this position, there is no better time than now to adjust your priorities and focus on taking your life back. Over the next few months, I hope to make a few minor changes here and there to help better control my hours.
Too much work is a good problem to have. That being said, it can lead to potential issues if not addressed appropriately.
The following was submitted by a guest contributor
For obvious reasons, nobody wants to lose their money under any circumstances. But if the recent economic carnage (remember Bear Stearns?) and the ongoing turmoil in the Eurozone is anything to go by, the prospect of waking up to find that your bank has collapsed isn’t out of the realm of possibility. You should concern yourself with protecting your savings and maximizing the growth of these funds. There are various options that can result in gains each and every year and, fortunately, anyone can take advantage of these solutions no matter how much money they hold in their name. And while it may be tempting to just lodge your savings under the mattress at home, this is the last thing you should do because that money will not grow at all! So if you want to diversify where you invest to protect your interests, check out these options.
(Relatively) Safe Places for Your Money
Here are some of the safest places to keep money from We Know Money:
High-Yield, Low-Fee Savings Accounts
Unfortunately, most financial institutions keep their interest rates low and their fees high for savings accounts. The average bank hands out interest rates below one percent. This story is completely different for fees and penalties though. In fact, you could pay $35 for overdrawing their account a single time. Luckily, various financial institutions still offer accounts with high yields and low or non-existent fees. For peace of mind, just make sure that all of the funds in an account are insured by the FDIC up to a certain amount too.
Dividends and Investments
Investing in stocks and other holds does come with an inherent degree of risk. Still, a cautious and savvy investor can easily turn a profit from the markets. Dividends are payments made on a quarterly or annual basis by companies to their shareholders. Some investors receive thousands of dollars in these payments each year. Of course, the amount earned depends upon the company’s dividend and how many shares you own. The key to success is to build up a portfolio over time and choose stocks that will keep their dividends for the years to come.
High-Yield Certificates of Deposit
Certificates of Deposit (CDs) work like savings accounts, but the owner locks themselves into a certain investment period. Of course, this can range from three months to ten years based upon a person’s preference. The money cannot be touched by the owner during this time, but it earns a specific interest rate during that period. A higher initial deposit usually results in a higher interest rate. By the end of the term, an individual will receive the original balance and all earned interest. Plus, these accounts are insured by the FDIC.
Safety Deposit Box
Sadly, this option does not come with an interest rate or any real way to profit from the funds. Not everyone wants to profit from their savings though. Many simply want to set aside some money they know is secure and protected. In most cases, a bank is likely to feature safety deposit boxes that account owners can rent for an extended period of time. With this option, a person can stick their money in one of these boxes and know that it is protected in a safe at that bank. The safety deposit box costs money but offers definite protection.
Conclusion
In the end, there are plenty of great options for keeping your money safe and protected. Most of the previously mentioned solutions allow you to earn a return on savings too. Some of them are even insured by the FDIC, which means you technically cannot lose their money. Without a doubt, a saver needs to take advantage of the options that suit their needs best. Each and every situation is different, so one solution may not always work for another individual. It is always recommended that a person chooses an option that fits their needs best.
The following was submitted by a guest contributor
Freelancers know what they want and they aren’t afraid of risks. They have quit their nine to five to become their own boss, embracing the new challenge and all of the curveballs thrown into the mix.
But the transition from employed to self-employed can raise some red flags for lenders and most freelancers find that securing credit of any kind, whether it’s obtaining a mortgage or simply looking at a credit card comparison, is much trickier than before.
Options are Available
Being a member of a credit union or holding an account with a bank for three or more years looks good to those particular financial institutions that could extend you a loan. Check with your bank or credit union first for lines of credit, personal loans, auto loans and even mortgages.
No matter where you apply for credit, it’s important that a freelancer can prove their income. This is usually done with tax forms, although there’s a catch. Many freelancers may be tempted to claim fewer earnings on their taxes in order to pay fewer taxes, but the actual earnings for the year are not reported.
This means that the claimed income is a much lower amount, so getting approved for a loan becomes more difficult. Make sure that the amount of taxes claimed each year is accurate and not reflecting a lower salary.
A self-certified mortgage may be an option, although these are becoming harder to come by. This is a type of mortgage that doesn’t require the applicant, such as a self-employed applicant, to prove earnings.
You simply inform the lender of your income. The reason these are quickly disappearing is because people would often lie to get more money, so this isn’t always a viable option, but check with your bank to see if they still carry this type of mortgage product.
Improving your credit score is a good idea whether you are self-employed or not. Lenders most often take into account a person’s credit history as the number one indicator of financial responsibility, even if that applicant works freelance.
This doesn’t mean that there are no options available to the freelancer with poor credit, but interest rates will be higher for anyone with less than perfect credit.
The bottom line is that freelancers will have to do extra homework when it comes to applying for a loan of any kind. When the majority of income shows up on a 1099 tax form, lenders will have a stack of paperwork and plenty of questions for which you need to be prepared.
You will probably be required to show copies of bank statements going back several months or even a few years, commission sheets, tax returns going back at least three years and any other crucial paperwork that can verify income.
Rather than be discouraged at the extra steps you need to take, be prepared and always one step ahead in the game if you want to prove your financial responsibility to lenders.
