How to manage your finances as a freelancer

The freelance lifestyle has its advantages. No daily commute, no rigid office hours, and the freedom to choose the projects and clients you take on.

However, it also comes with certain responsibilities — especially when managing your finances. As a freelancer, you don’t have the luxury of relying on an employer to ensure you receive your salary on time and pay the right amount in tax; staying in control of your finances is down to you.

That’s why it’s essential to arm yourself with the knowledge and tools to simplify managing your money. To get you started, here are four tips to help you master your finances.

1. Be ready to accept international payments

A fast and affordable way to take payment from overseas is key for many freelancers.

Thanks to improvements in global infrastructure, it’s easier than ever to access the internet and work from wherever you’d like. In fact, there are now an estimated 40 million digital nomads worldwide, as people explore different countries and locations while making a living online.

Even if you’re not travelling, you will likely benefit from a convenient, cost-effective way to receive payments from other countries. By offering your services to international clients, you can broaden your customer base and potentially increase your earnings.

But receiving payment from abroad can be slow and expensive, with high international banking fees and exchange rates eating into your hard-earned cash. That’s why using an international money transfer app like Skrill is a no-brainer.

Skrill makes it easy to receive payments from around the globe. You can instantly transfer funds from one Skrill account to another in 40+ currencies using an email address or phone number. Or you can send funds to a bank account overseas at great rates.

Send money with Skrill

2. Take steps to keep your money safe

Freelancers don’t have a corporate IT support team to call on when targeted by scammers. So, keeping your money and devices safe is up to you.

Take these measures to protect your accounts:

• Set strong passwords: Set unique, complex passwords and never share your login credentials with others.
   
• Use multi-factor authentication (MFA): Add another layer of protection by requiring a second login credential, like a code sent to your phone or facial recognition.
   
• Avoid sketchy Wi-Fi: It’s tempting to connect with free Wi-Fi networks when working from a café or hotel, but these publicly accessible networks are often less secure.
   
• Keep software updated: Verify that your device’s operating system is up to date and install antivirus software to bolster your defences.
   
• Stay alert for scams: Always double check to whom you are sending money, resist pressure to transfer money urgently, and be suspicious of offers that seem too good to be true.

With Skrill, your account login, personal information and transaction details are secured using Secure Socket Layer (SSL) technology with high-security 128-bit encryption, certified by VeriSign. We also use fraud prevention technology to detect unusual activity on your account and block suspicious transactions, so you can rest easier knowing your money’s protected with best-in-class security features.
 

3. Set a budget and stick to it

One of the toughest parts of freelancing is achieving a stable income over time. One month you're flush following a string of big projects, the next you're scraping by as clients tighten their purse strings. That’s why budgeting is key.

Track your income and expenses with a spreadsheet or budgeting app. This gives you visibility into your cash flow, so you know when you can afford to treat yourself — and when you need to rein in the spending.

You should also put money aside for an emergency fund. When you have reserves to fall back on, problems like late client payments and unexpected expenses become less of a worry.

Need help to stay disciplined? Deposit your budgeted spending money into your Skrill account and send or spend without going overdrawn. It’s a great way to stay on track and for extra flexibility, you can get a Skrill prepaid card to spend in-store or withdraw cash.

Get a Skrill card

4. Keep clear records for taxes

When it’s time for your tax return, you’ll need to know exactly how much you earned and spent. Keeping your personal and freelance finances separate makes life easier — and Skrill can help.

Using your Skrill account for freelance income means you’ve got a dedicated app to track all your payments and expenses. No messy bank statements to untangle. Just clear visibility of work-related payments when it’s time to file.

A few extra tax tips:

• Set aside a portion of your monthly income for the end-of-year tax bill.
   
• Know what deductions you’re entitled to in your country. You might be able to claim on home office expenses, business travel, and training courses.
   
• File on time to avoid late payment penalties and stay on the tax man’s good side.

Why Skrill is a top finance tool for freelancers

From getting paid internationally to staying on top of spending and taxes, freelancers have a lot to think about. Skrill makes it easier.

As a global digital wallet, Skrill ensures you can pay and get paid quickly, safely, and on your terms. More than just a payments company, we help freelancers connect with opportunities, work smarter, and delight clients with smooth transactions.

Ready to take control of your finances? Try Skrill, the digital wallet built for fast-moving freelancers like you.

*Skrill’s offering of and support to the Skrill Prepaid Mastercard® Program is limited to residents of the European Economic Area and UK.