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Gig workers, such as those in food delivery and transport, often enjoy the freedom that comes from an unconventional job. Webmaster tools tools But there is usually no certainty over when the next job will come.

Mr Christopher Tan, Providend’s chief executive, advises that it is prudent for a self-employed person or freelancer to be prepared for emergencies, to set future goals and to run his business like a corporation.

It is advisable to set up an emergency fund that will cover you for six months of expenses if you lose your job. Keywords webmaster tools Independent or gig workers should probably set aside a larger emergency fund to help them fund 12 months of expenses, said Mr Vasu Menon, OCBC Bank’s senior investment strategist.

“This is because with the economy going through challenging times ahead, regular freelance jobs may be harder to come by and the dry spells could last longer,” he said.

Google webmaster tools google analytics Last year, Singapore’s employment growth rate hit a 13-year low.

“A self-employed person should focus on accumulating enough cash reserve in order to meet high deposit payment for housing or other big purchases. Webmaster tools app Perhaps prior to becoming self-employed, one should consider having his home loan properly restructured before it is too late.”

“Unlike full-time employees, such workers do not enjoy medical benefits for hospitalisation expenses. How to get webmaster tools verification code So it is imperative that they protect themselves by buying hospital and critical illness insurance plans,” said Mr Menon.

Mr Tan advised that as a gig worker does not have medical benefits, he should ensure that he has a suitable medical contingency plan, so that in the event of a medical crisis, he will be able to afford good medical care as well as replacing any lost income.

Mr Brandon Lam, the Singapore head of financial planning group at DBS Bank, noted that if such a worker wants the option of treatment in a private hospital, staying in a higher-class ward or additional coverage, he should check out the integrated shield plans managed by a private insurer.

This is in addition to the coverage offered by MediShield Life for all Singaporeans and permanent residents, where the benefits are calculated based on the costs in Class B2/C wards in a public or restructured hospital.

“Without employee medical benefits, independent workers ought to look for ways to reduce outpatient healthcare costs. On the webmaster tools home page To manage outpatient medical costs, independent workers can do some advance research to seek out medical practitioners who impose lower charges for consultation and medications.

“Alternatively, for chronic illnesses, consider seeking treatment in government outpatient clinics, where Singaporeans can enjoy significant subsidies,” Mr Menon said.

“This is because with an irregular income stream, you may not be able to save enough to leave behind sufficient financial resources for your dependants if you pass away prematurely. Webmaster tools crawl If you find whole life insurance plans costly, you can consider term plans which are more affordable,” he advised.

Mr Lam recommends that a simple rule of thumb to assess the amount required for life and disability insurance is to calculate how much you need per month to support your family.

“Take that amount and multiply it by the period that your family needs in order to continue with their current lifestyle, such as until your children graduate from university. Webmaster tools meta tag You’ll need to take inflation into consideration.

“You also need to include any outstanding liability to repay if you do not have other insurance to cover them,” said Mr Lam, adding that an alternative method is to multiply annual income by 10.

For gig economy workers who are always on the move, such as drivers and delivery workers, where the risk of accidents may be higher, they should consider topping up their protection with personal accident insurance, said Mr Lam.

Mr Lam suggested regularly tracking your liabilities. Contact webmaster tools “If you are taking a home loan, consider a loan that is of the right size for you vis-a-vis the maximum that you are eligible to borrow.”

Mr Lam noted that your CPF savings in the Ordinary Account earn a guaranteed interest rate of 2.5 per cent a year, while savings in the Special Account and Medisave Account earn a guaranteed minimum interest rate of 4 per cent a year. Best webmaster tools The first $60,000 of your combined CPF balances, of which up to $20,000 comes from your Ordinary Account, earn one percentage point more.

“The amount will be spread across the Ordinary Account, the Special Account and the Medisave Account. Webmaster tools english In this way, you put yourself into a tax-efficient ‘forced-saving’ mode to save for your mortgage payments, retirement and even medical sinking fund,” he explained.

Do CPF top-ups into your Special Account if you are able to afford it, so that you can benefit from the compounding effect of the higher interest rate, said Mr Tan. Webmaster tools tutorial 2015 This will allow you to accumulate your savings faster and achieve your retirement goal earlier.

Mr Tan recommended setting up a budget to intentionally park savings meant for retirement and children’s education. Webmaster tools submit url to index It is equally important to have the discipline to keep to the budget to control your expenses.

“However, for independent workers whose income streams are unpredictable, they should aim to save even more when they can – perhaps at least 20 per cent of their income to meet their medium- to long-term needs like paying for their children’s tertiary education and funding their own retirement.”

Mr Ee advised creating a structured savings plan similar to that of a private pension scheme. Free webmaster tools This is because without CPF contributions, the self-employed person is way behind in terms of saving.

Those who are self-employed should save at least 20 per cent of their income and make maximum contributions ($15,300 for Singaporeans) per year into the Supplementary Retirement Scheme account.

“With irregular income, the self-employed may easily mismanage their cash flow. Top webmaster tools It is important to consciously keep the fixed expenditure low. Webmaster tools tracking code Unmatched financial commitment creates immense stress for the self employed,” Mr Ee said.

Ms Chung Shaw Bee, the regional and Singapore head of wealth management at UOB, said that for investors without regular income, it is important to build up various sources of passive income to supplement their earned income.

This can be rental income from investment properties, dividend yields and payouts from instruments like stocks, bonds, unit trusts, annuities and insurance savings plans that are staggered.

Mr Tan recommended setting aside an amount on a yearly basis for personal learning and development. Webmaster seo tools This will ensure that you remain relevant in an uncertain world so that you can continually earn an income and possibly increase your income.

Set aside part of your revenue as retained profits so as to give you the option of expanding your business if desired or to cope with business contingencies without affecting your own income or savings, said Mr Tan.

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