👩💻 Financial advice for freelancers: A real guide to Hong Kong

Many Hong Kong freelancers and slashers find financial management difficult, but with a strategy, you can steadily save money even with a fluctuating income and reduce stress! I've combined years of experience with SOHO and self-employed friends with the latest local tips and tricks to help you find the best deal! 🧑💻💡

🏦 1. Dual bank account system to distinguish income and expenditure

• Open a "business account" to collect money from customers and pay for daily SOHO matters (such as equipment, outsourcing, and taxes).

• Transfer a fixed "salary" every month to your "personal living account", and use your personal account for all daily expenses, meals, and entertainment. Don't mess around!

• Advantages : Clearly know your monthly "spending amount", "performance" and "actual profit before tax", and check your financial status in three seconds.

💸 2. Save tax money and reserve funds first, then invest

• For each customer payment, 20-25% will be reserved and transferred to the "Tax Reserve Account" (for tax payment only).

• The emergency fund should be stronger : save at least 6-12 months of daily expenses to deal with case shortages/client delays.

• Insurance is not hea ! It is recommended to agree to external insurance for basic medical/hospitalization and major illness, and set aside at least 10% of your income for premiums.

📈 3. Three-tier asset allocation: cash, stability, and value-added

• Cash/short-term deposits (40%) : This is used to prepare for any shortage or large expenses. Some can also be placed in short-term fixed deposits or high-interest accounts.

• Conservative investments (30-40%) : Government iBonds, corporate/government bonds, interest-bearing products, and income funds, ensuring that passive income covers at least half of expenses.

• Growth investments (20-30%) : stocks, ETFs, REITs, or skill monetization (e.g., publishing e-books/courses/royalties, etc.).

• Review every six months and adjust the portfolio according to different market conditions to diversify risks.

📋 4. Keep accounts and manage cash flow carefully

• It is recommended to use accounting apps such as Excel, MoneyHero, CWMoney, etc. to track income sources (which customers are stable?), monthly balances/gross profits, and all daily expenses.

• Collect debts promptly, record outstanding debts, and strictly investigate overdue payments to expedite cash flow.

• During unstable periods, it is important to reduce unnecessary consumption and avoid spending like a tycoon just when you have a big deal.

🏥 5. Plan your insurance/MPF/taxes

• Must-buy local medical, hospitalisation, critical illness and accident protection .

• Voluntary Mandatory Provident Fund : If your annual income is HK$7,100 or above, you can contribute 5% as required by law. Regular contributions will help you buy a property/finance more easily in the future (with tax returns as proof).

• Every year when filing taxes, be sure to check your expense receipts to see if there are any legal deductions you can claim, or if you can plan your company or personal MPF contributions.

🔄 6. Professional skills improvement + diversified income to avoid all-in on one industry

• It is recommended to continue studying professional skills/certifications to improve bargaining power and diversify income (such as multiple platforms, publishing e-books/using AI tools).

• Pay attention to industry trends, build a customer backup group, and proactively develop new opportunities/slash income if there are no cases to take.

✍️ 7. Editor’s Lazy Checklist (for Hong Kong freelancers)

1. Separate Accounts: Business vs. Life vs. Taxes

2. Monthly self-salaried and personal budget

3. 10-25% tax reserve fund will be allocated upon receipt of payment

4. Emergency funds extended to six months or a year

5. Protect your life first (basic insurance), then consider investment

6. Three-tier allocation: cash, stable, and growth investment

7. Easy-to-use accounting app + cash flow review/debt collection management

8. Upgrading skills + multiple income sources = no worries about market downturns

9. Tax filing + MPF regular planning to avoid shocks

10. Actively seek help from financial advisors/banks when facing financial pressure

🎯 Editor's Friendly Reminder

1. "Freedom does not mean willfulness" - To know how to allocate money, you must first have financial control !

2. "Don't mess around when there are many cases, and don't panic when there are few cases."

3. "Passive income/stable pool is a safe support, and appropriate investment in yourself is a springboard for the future" !

I hope all Hong Kong freelancers can adjust steadily, take on more and more cases, and steadily increase their income! 💪🐱🏍