Making the leap from employment to freelancing can be daunting at first. As a freelancer, you’ll have lots of time in your hands, but you must work harder because there’s no steady paycheck. Every project you accomplish will bring in cash, and most projects are just temporary. Before you take the leap, you need to make sure that you have tons of financial sources. These sources can back you up and see you through the hard, initial times.
A Personal Loan
Personal loans are offered by banks, independent lenders, and other financial organizations. Most personal loans today have easy application processes. The funds can even be released within a day or just few hours, if ever you’re approved. Don’t take this lightly though – there’s still credit investigation involved to see if you don’t have outstanding balances.
Loan from Friends and Family
Another option is to get loans from your family and friends. This method is easier because they will likely trust you. There are also no interest rates involved and complicated paperwork. Even if this method is easy, you still have responsibility on your shoulders. Repay the loan or else you’ll gain the ire of your trusted friends and relatives.
Your Own Savings Account
The safest way is to draw your hard-earned cash out of your savings account. In this way, you have full control over your spending and you don’t need to repay anyone. Before getting any cash, you have to assess your finances. Do you have responsibilities that must be fulfilled in the future? In that case, draining your savings account is not good. Rather, get a small portion of the account and leave something as contingency.
Do you have these three sources at hand? If not, you should do your best in securing these sources as soon as possible.