Smartmoney

The challenges. Without proof of a regular income you’re too risky for lenders, so be ready for a larger down payment on that new car. Unforeseen expenses seem insurmountable when incomes dip, especially since you don’t have the savings discipline enforced by a provident fund and the like. Further, you don’t have the insurance cover provided by employers, which adds to the risk. Here’s how you can bring method to the madness.

• Save during high-income months; set aside money that’ll see you through 9-12 months.
• Take on adequate insurance, since you have so much more to lose...
• Establish a good credit record. It’ll help when you need a loan.
• Never take on a bigger loan than you need; prepay whenever possible.
• Enforce financial discipline, and earmark part of your savings to meet long-term goals.

Rolta’s stock, trading at Rs 140, discounts its first-quarter earnings, annualised, seven times. Cheap, but given the concerns, I’d stay away.

Sum insured ($)

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