The working world is going through a revolution. There’s no such thing as taking or having “a job for life” anymore. That’s a thing of generations past. Full-time, nine-to-five careers and steady paychecks are becoming harder to find every day.
We’re in the new “freelance” economy.
For freelancers and temporary contract workers, there’s no such thing as:
- company sponsored registered retirement savings plans (RRSPs),
- company pension plans,
- paid benefits coverage,
- company sponsored group life, disability, home or auto insurance.
Not having a company-sponsored RRSP is a big deal. These plans let employers deduct a regular amount from paychecks and deposit it into a RRSP. And many employers will match contributions. But freelancers and contract workers are on their own.
As a freelancer, you’re responsible for your own future financial security.
That means you’ve got to learn about:
- tax-free savings accounts (TFSAs),
- registered retirement income funds,
- mutual funds,
- exchange-traded funds,
- all the other ways of investing and how to use them to your best advantage for your financial interests.
Not only that.
You’ve also got to make sure you put part of every check you receive from clients into a RRSP. And you’ve got to keep a regular eye on your investments. You must make sure they’re building the income you’re going to need in the future.
Sound overwhelming? It takes significant financial literacy to be comfortable doing all this on your own.
If you haven’t got the confidence and skills, the best thing you can do is turn to a professional financial advisor for help.