As a freelancer, you don’t have the luxury of being paid when you take time off sick. Having the odd cold or bout of sickness isn’t going to make a big dent in your finances but being off work for several weeks certainly will.
Hopefully you won’t be unlucky enough to have a bad accident or serious illness but these things can happen. I know freelancers who have broken an arm, undergone major surgery, or have had to take extended time off to care for an elderly relative. And no work means no income.
Since you don’t get sick pay from an employer or Sickness Benefit from the State as a freelancer, you will need to build up what I call a ‘buffer zone’. Put aside a regular amount each month that you can draw upon if you’re ill and unable to earn money.
The buffer zone is also there to draw upon if you experience a lean time and you can’t make ends meet. And it’s there if you suddenly find yourself the sole earner in your household because your partner has lost his or her job.