In this era that cherishes freedom, we are often tripped up by all sorts of worldly concerns. Freedom has no set conventions, but there is one thing: without money, freedom is out of the question.

While the nine-to-five job can be constraining, it provides a sense of security and an income that one can control at any time.

For those with unstable incomes, how can they ensure their daily needs are met and also increase their daily income?

Keep enough living expenses for six months as an emergency fund.

It's not the big things that make you collapse; sometimes it's just the trivial things, like living expenses.

How can you have the confidence to live?

You can live without a house or a car, but you can't live without the expenses for daily life.

So, how long should you typically keep expenses on hand? Six months is the most basic requirement.Ensure you have sufficient living expenses set aside so that you are not burdened by the immediate demands of life. Money beyond your daily needs can be placed in fixed-term bank financial products. Typically, these products have terms ranging from 1 to 12 months with returns between 4.3% and 4.9%, which is essentially 2% more than what you could earn in Yu'e Bao, and there is no need to worry about losing your principal.

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If you keep this portion of your money in your bank account, the income from the demand interest would be negligible. However, we must avoid putting our money into high-risk products, as this could easily lead to the loss of the principal.

Fixed bank deposits can yield higher income than Yu'e Bao, and this income is stable, making it a reasonable approach for conservative financial management. Pay your social security contributions on time each month. Contributing to social security is important because if you fall ill, it means a pause in work, loss of income, and additional expenses for treatment. With medical insurance, at least many routine medications within the scope of social security can be reimbursed at a significant rate, which is definitely a cost-saving method.

Illness is an unexpected event, and no one can predict when such an event will occur. As everyone knows, the difference between having medical insurance and not having it is quite significant.Without medical insurance, the cost of hospitalization can undoubtedly be a disaster for those with unstable incomes. Whenever possible, don't forget to allocate a small amount of money to pay for medical insurance, which can be a lifesaver in critical moments.

Supplement with Commercial Insurance

It is advisable to set aside 5-8% of your annual income to cover the four basic types of insurance: critical illness, medical, accident, and life insurance. This is because medical insurance has many limitations, such as the deductible, the cap on coverage, and out-of-pocket expenses that must be borne by the individual. Commercial insurance can fill these gaps and provide more comprehensive protection.

Some argue that commercial insurance is unnecessary, as it is designed to cover low-probability events that may never occur. However, should the need arise, having insurance can help you navigate through difficult times.

Given the instability of income, it is even more important to understand how to use leverage to mitigate the occurrence of low-probability events. Therefore, it is essential to allocate a small portion of your income to secure protection.

Set Aside Funds Annually to Invest in Your Mind

If there is one investment in this world that is guaranteed to yield returns, it is investing in yourself. Learning new knowledge and skills not only broadens your professional horizons but also provides a more secure and stable path in the journey of self-employment.Learning to invest takes time to show results, but it follows a winding upward curve.

Once you pass that critical point, you'll find that the ceiling you couldn't reach before has become your floor.

If you can do all five of these well, even if your regular income is not much, life won't crush you. When you've spent enough time honing your skills, you'll find that your income has left a large portion of your peers behind.