MANILA - Freelancing gives you a relatively flexible time but can it also give you financial security?

Certified financial planner Benigno Reglos shares some tips on how freelancers can manage their finances as they manage their time.

1. Ensure that you have savings

Before even taking the freelance route, one should have enough cash reserve, especially since freelancers tend to have irregular income.

Reglos suggests freelancers to prepare at least six months of their monthly expenses as their emergency funds.

"As a freelancer, you are responsible in all areas of your business, so financial planning is really really important. Before really jumping into it, you really have to prepare ahead. It's really crucial because on your first few months as a freelancer, your focus is more on preparing, you are still on your learning phase. You're just starting to build up your clients, and thus, you have to have enough money cover your monthly living expenses," Reglos said on ANC's On The Money.

2. Pay your taxes, dues

Aside from managing their time and their finances, freelancers, unlike regular employees, have to be responsible for everything, including paying taxes and other dues.

Taxes are not automatically deducted so Reglos suggests keeping a separate envelope where one should keep at least 25 percent of his or her monthly income for taxes.

The same should be done for payments for other social safety nets like contributions to Social Security System (SSS) and PhilHealth.

3. Avoid long-term loans

Reglos warns freelancers to avoid taking out long-term loans.

"If you cannot pay it for a short period of time, then treat it as a monthly expense," he added.

The trick to keeping track of one's finances it to have discipline, and a monthly financial target.

"Come up with an average monthly expense, and make it a point to hit the minimum expense," Reglos said.

4. Review investments

Should freelancers invest their money?

"Invest only those money that are really excess, not intended for emergency fund," Reglos said.

Instead of investing in other financial instruments, a freelancer should invest on self-improvement.

"Invest in yourself as well because that is your business," Reglos added.