Skip to content
Life Guide Situations Guides

    Type a keyword to search
    English

    By job ยท 3 tips

    Freelancers and gig workers

    With no employer to cover you, you have to arrange your own safety net: an emergency fund and insurance.

    1 Safety net

    Don't waste your money

    Build an emergency fund of 3 to 6 months of living expenses first, and keep it where you can withdraw it at any time

    Keep 3 to 6 months of living expenses in a place you can take it out at any time. Then when you lose your job or get sick, you don't have to borrow at high interest, such as by making only the minimum credit card payment, and you don't have to sell your investments at a loss. Money in a bank is covered by deposit insurance, up to 500,000 (50ไธ‡) CNY at the same bank.

    • High value
    • Evidence C
    • Saves money
    Don't waste your money

    Buy insurance only for losses you can't bear yourself, and cover losses you can bear with your emergency fund

    The premiums you pay do not all come back as payouts, because part goes to the insurer's costs and profit. So what's worth buying is cover for losses that rarely happen and that your family couldn't pay for if they did, such as a serious illness, injuring someone while driving, or the death of the family's earner. Small losses your savings can bear are left to the emergency fund.

    • High value
    • Evidence C
    • Saves money
    Don't waste your money

    If people at home live on your income, buy term life insurance for the earner first, not for the children

    Term life insurance covers only a fixed number of years, and if the insured person dies in those years, the family receives a lump sum. It is for family members who live on your income, for example when the mortgage isn't paid off and the children are small. If no one depends on you, you don't need it. Children don't earn money, and the law even limits how much a death policy on a child can pay.

    • High value
    • Evidence C
    • Saves money

    Related

    This site arranged the groups and order on this page; the tips come from the book. About