How Do You Bank as a Freelancer? Part One by Nicole Harmon

Heads up-freelance work equals 40+ hours work weeks.

Photo courtesy of Lifestyle-520CW-Pixistock-70

Hi all. Heads up-freelance work equals 40+ hours work weeks.  But the flipside is if you find a paying client-not actually working until 10 p.m. in the evening is very feasible. For most of us we start our days as soon as new tasks available.” For me its either 1:00 a.m. to 3:00 a.m. I’m so happy to see that email. I’ve got work. Seems hokey right? It is not.

What that means is I live paycheck to paycheck.  Is that wrong? For me it is semi-accurate. Let me explain. I get paid once a month. If all my checks for freelance work came in, I would be paid two checks per month. My last store job didn’t last. I am not currently working as a substitute teacher. So, I don’t have unemployment. I have been offered grant money which I am looking into accepting. The problem with the pay scheme as that scenario is- I need money to go into a bank and accumulate. I also may have to pay fees. Sometimes it could be weeks between paychecks as in more than two. I’m at one month. I need a bank that won’t charge me a fee, also gives me checks, charge card and a savings account.  What I have read is that freelancers would also like a bank that could tally taxes and pay taxes. Some prefer a QuickBooks type that also tracks expenses, mileage, petty cash, bills, cash disbursements plus pay checks. Recently there have been a lot of options to help people particularly freelancers’ bank.

There are several new banking options for freelancers. I’m keeping track. Why you ask? Because I have problems with my checking account at a brick-and-mortar bank. Mostly I keep track of my money but sometimes I didn’t. As a result, I couldn’t keep my accounts. Now I need a checking account even for freelancing because some want to give you a check to deposit by mobile banking.  Mobile banking is not as easy as it sounds particularly when you get email checks that you must print out to send into the bank.  Sometimes they cash them, bounce them and then sometimes they just bounce them.

Options for Banking

Photo courtesy of Charles Parker from Pexels

I started with PayPal. It was a personal account. I could be paid via ACH or electronic payment. For me I could get paid without fearing a bounced check or fraud. If need be, I found out I could send checks to me for deposit in my brick-and-mortar bank. I could transfer money to my bank if it was attached.  And I just found out I could cash checks through the website which then allows me to deposit and write checks.  As PayPal is my business account that would do me very well. My first PayPal was for non-business even though I got paid for freelance ghostwriting. I was given a cash-debit card. The only way I could use it was if there were funds in my account (secured credit). Since I never made enough money, I didn’t ask for a 1099 which I could obtain via my freelance website PayPal.  This year I have too because I opened my business: Nicole Harmon DBA Yasmine Jameson to an EIN.  I was informed by the IRS; I must put that on all my taxes from now on and I must file. My eyes were so happy to see I could use Direct Deposit with a personal account.  Then I changed to Thrive Cart for one of my affiliates-Hope writers.  Unlike my fellow affiliate counterparts, who got informed how to join without upgrading, I had to upgrade my account to a me a kick in the pants to start the DBA.

But I still needed a bank account for checking. Before you say what about local banks, let me inform you we have two. I have been at one since 2007 when I moved back home to my parents prior to my father’s death. My problem is with recurring payments. I give my credit card number to the bill collector on the account and information needed to pay monthly bills upon due date by automatic payments-and one of 2(3) things happen in tandem:

  1. I lose my job
  2. End of unemployment
  3. Low funds in a bank account.

Plus, I would forget who had automatic payments on which credit card which by the way was unsecured credit in the beginning. I would stop not all my automatic payments or get charged and overdraw my account, bounce checks or both. Hence, my account would be closed and I’m without a checking. I had to close three checking accounts not the PayPal.

I also opened a Skrill account because I write for Topcontent and at the time they did not accept PayPal. I do a lot of work overseas for United Kingdom blogs and businesses who have blogs including gaming and gambling establishments.  I also do work for the surrounding countries. Recently, I was granted “True Skriller” status. How? I downloaded the App. Now I can use as I use any other secured credit card. But I still need a checking account because most businesses give me a hard time with paying me via electronically.  Websites have no problem. Companies do because they would like you to have checking at a brick-and-mortar bank. Recently I was told to open an online checking account such as Citibank online banking which is an online checking account.  All is done via mobile phone and online.  We shall find out the status of that later in the post.

Yes, a lot of new ways to bank are being offered particularly to those who have no bank and freelancers.  All are being touted as the banking of tomorrow for freelancers. At last count four or five have been offered in my Facebook and Instagram account alone.  

See How to Bank as a Freelancer Part Two on next post.

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Author: Nicole T Harmon

I am a writer who is hoping to make it big in the publishing world. I hope to have my other blog up and running by next year. Please enjoy the journey with me. If you are looking to read some good stories check out www.murderonmymind.spaces.live.com.

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