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"5 Essential Money Management Tips for Creative Professionals"

applicable exclusively to freelancers in India 5 strong strategies to maximise your yearly profits

Every year, we learn more about ourselves by getting new assignments and using our current skill of making pictures for brands, agencies, and corporations to help ourselves and our loved ones. It's not always easy to stick to deadlines and contracts, which can affect our yearly and even monthly goals. Instead of trying hard to control the fantasy of on-time payments, we should accept that we chose this way of life freely and that we can always control its beauty. Making a budget, learning about some must-do investments, and learning more about money and how to give it the best chance to grow will help you get started on your path to living a life and doing what you love for as long as you want. The most important thing is that you should be proud of taking the road less traveled and being a part of a society that helps itself.

This blog doesn't offer any quick ways to make money, like recommended insurance plans, stocks, or mutual funds. Its only goal is to help us understand money better and give you some tips on how to make the most of your yearly earnings.

Financial literacy is a basic right that we were not taught well in school. I'm sure people who grew up in the 1990s can connect to this. Instead of being afraid of missing out, we should be thankful that we live in a time of opportunity and massive knowledge exchange.

Go ahead and start!

1.Monthly expenditure: Starting modest is always a good notion when you're dealing with a non-linear earning fashion because your living is uncertain. The following may or may not be monthly necessities: Housing, A Mortgage EMI (if you're a house owner, that's great!), maintenance fees (for homeowners), power, internet, groceries, gas (not for eating out), travel (and EMI, if applicable), personal care items, medicine, home cleaning (including fees for domestic help), subscriptions to educational or entertainment services (like Netflix or work-related accounts) and anything else that's necessary for your survival.

If you add together all of the above and multiply it by 12, you will have the minimum amount needed to live comfortably in India. The figures will change based on factors like location and individual tastes and habits.

Let's consider that we require 25,000.00 INR monthly on average and 3 lakh per individual every year.

2. Investment matters:When you're your own boss, you have to be just as proactive as an employee, even though you can't see the big picture. It is essential to get both term insurance (only if you have a family to support in the event of your untimely death) and health insurance (not negotiable) since, even if you haven't been sick very often, the skyrocketing costs of medical care will catch you off guard.

Under section 80C, you can deduct the aforementioned expenses.

Always, always and for god sake always Avoid any MONEY back or Guaranteed return Policy in the name of insurance or else. IT'S A SCAM!

An excellent method to prepare for any kind of disaster is to have liquid funds or a fixed deposit on hand. It's recommended to set aside at least six to twelve months' worth of expenses in these categories. They not only provide an opportunity for your rainy-day fund to grow, but they also serve as a mental wall to prevent you from spending more than you have.

3. UNDERSTAND MONEY: The government of India strongly recommends that self-employed professionals register a PPF account since it serves as a tax saver and also offers a return that is free of taxes, at a rate of 7.1% per year, which is higher than the average inflation rate in India. For the time being, let's focus on PPF as that's all we have, even though it has its own advantages and disadvantages and has long been considered equivalent to EPF.

I think it's a great method to put my money to work for me and get me closer to my goal of financial independence.

A PRO TIP: Always invest in your PPF account a maximum of 1.5 lakh a year between 1st and 5th April to gain the maximum rate of return. 15 year lock in period and can be extended for 5 years and more consequently after the completion of 15 years with a minimum topup of 500 INR only.

Just like our parents, who were and still are huge fans of FD for the peace of mind it provides, we now live in a time when everyone expects too much. If you want to give your money the boost it deserves, a mutual fund is a fantastic option. Stocks are great, but I think you should stick to mutual and debt funds unless you want to join the financial fraternity and have the time to learn all there is to know about the stock market and beyond.

The world of mutual funds is vast and complex, and it is necessary to explore it thoroughly periodically to learn about its ins and outs and choose the one that best fits our needs. After you've mastered the fundamentals, you'll never have to worry about anything else; in fact, you'll look back on your younger self with gratitude and pride.

4. MUTUAL FUND: We photographers and creative professionals have varying needs and wants when it comes to equipment, subscriptions, and study materials, and for many of us, travel is more of a necessity than a luxury. Investing the traditional way is clearly not the way to go if we want to pursue our life's passion, and there's no denying that we need a safety net. Among the many alternatives provided by mutual funds, one is a liquid fund; I keep some of my savings in this type of account because it's easier to access than a fixed deposit (FD). Index investing allows you to sit back and enjoy the ride, while a few flexi-cap funds allow me to get the most out of everything.

TO NOTE: I am not a financial advisor and highly suggest to seek a professional's help which suits your needs better.

More than a thousand schemes are at your fingertips, with many catering to more seasoned investors with offerings like credit risk, sectoral, or focused funds. That shouldn't discourage you from studying and learning the essentials. I hope you're sticking around to the end of the article because I recommend a few books to anyone who wants to learn more.

In my experience, mutual funds consistently outperform fixed-income investments (FDs) due to their higher average returns, which help to maintain a domestic purchasing power parity (PPP). It should be remembered that these goods are linked to the market, which means they are subject to volatility. Be aware of your risk tolerance before investing in these financial assets because of the impact of political, geopolitical, and specific domestic and worldwide pandemic events. For goals that are five or six years in the future, I prefer these methods; for goals that are shorter than three years, I prefer to use traditional methods because I can guarantee the amount I need at that time.

If you're just starting out as an investor, the sheer number of considerations may be intimidating. Take a deep breath and believe in your abilities; you can turn financial complexity into lovely, graceful rewards.

5. MAKE YOURSELF A PRIORITY: Everyone has the same basic need for survival, whether they are self-employed artists or salaried workers. Nevertheless, we can achieve greatness and dominate our field provided we have the mental and physical resources to do so. The greatest insurance is merely a safety net; we still need to put ourselves first every now and then.

  • Get out of bed and exercise at least once a day so you can enjoy the sun's rays.

  • Prepare your own meals and eat those low-fat, low-cheesy options. Prioritize your health over medical expenses.

  • Because life is so cutthroat and your mind is racing from all the negotiations and bad self-talk, it's important to take some time to meditate and be thankful.

  • If you do care about money, if you can afford, you should give to charity every so often.

  • Firmly decline employment that isn't a good fit for your aspirations.

  • You didn't sign up to be bullied or disrespected just because the creativity business is cutthroat.

A third party is often necessary to assist us reorient ourselves when the boundaries between our personal and professional lives get blurry on the long and winding road that is being a creative professional wherever in the globe. Despite our best efforts to avoid playing the "money game," the constant barrage of negative social media posts serves as a constant reminder of how little we actually have. Be patient, my friend; a man once told me that things will get better and that I will get what I want when the time is right.


I, Shovona Karmakar, work in advertising as both a commercial photographer and a computer-generated imagery (CGI) artist. Location: Mumbai. This online journal serves as a window into my worldview and interests, and I hope that you will find something of interest here. My life is consumed by the desire to learn more, so if I'm not doing my homework, you can probably find me at a garden center or a bookstore.


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