Good money habits for freelancers

As a freelancer, you know that managing your money can be a tough task. You may not have an employer to help out with benefits like vacation time and health insurance. It's up to you to make sure you're saving enough for retirement and investing in ways that will grow your nest egg over time.

Here are some money habits that can help any freelancer stay financially secure:

Get a separate bank account solely for your business.

If you'd like to keep your personal and business finances separate, a good place to start is with a separate bank account. You may be able to get one right at your local branch or find an online bank that will help you manage both accounts easily.

If you don't already have one, creating this account can help keep track of expenses, income (if applicable), and other financial information related to your freelance work. It also opens the door for setting up budgeting tools so that you know exactly where all of your money is going each month—and why.

Choice of a business bank account could also include features that allow for the life of travel,  international bank transfers, and easily moving money from popular services like PayPal, Payoneer, cryptocurrency or whatever your preference is in receiving digital payments.


Invest in tax software.

Tax software is a good investment. Tax software can help you keep your records organized and track of your business expenses. It's important to keep meticulous records so that when tax season comes (and it will), you're prepared with all the documentation you need to file on time in your country. Again, if you are going to work with international clients, be sure your software accommodates this.

Know your cash flow

Knowing your cash flow is key to being able to manage your finances. You need to know how much money is coming in, and how much is going out.

  • What bills do I have? How much do they cost?

  • Where does my money go each month? Do I have any expenses that are higher than usual or unexpected (such as medical bills)?

  • When will I get paid? This is important as a freelancer since payment schedules can be erratic.

Always have an emergency fund.

Emergency funds are crucial to any freelancer's financial health. You never know when you might need money, so it's important not to be caught off guard by an emergency. If you've had a string of bad luck or unexpected expenses, your emergency fund can help get you through a difficult period until things get back on track.

If there aren't enough rainy day funds in the bank account, don't panic: there are other options besides taking out a loan or selling off assets like jewelry or furniture (although those are decent solutions).

You can consider reducing spending in other areas of your life such as eating out less often and getting rid of cable TV (or streaming services).


Watch for billing scams

When it comes to scams, you're at a higher risk than most because of the nature of your work. offers help with risk management through the Blue Board and reports on commonly used scams. Keep yourself updated and ahead of scammers.



The money habits you have as a freelancer can have a big impact on your financial health.

In order to achieve financial success as a freelancer, it's important to be aware of your income and spending habits. Your ability to control your own finances is essential for making sure you're able to make and save money in the long term.

Here are some basic money habits that freelancers should have:

  • Know how much you make each month (and how much you plan on making)

  • Have a budget for how much money you plan on spending during the month/year (and stick with it)

  • Use tax software so that taxes are all taken care of when they're due

I hope these tips will help you get started, but ultimately it’s up to you to make sure they stick.

Topics: freelancer, jobs, payments, ProZ*Pay

Mike Donlin

Written by Mike Donlin

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