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Budgeting
without a 9-5.
Money Talks feat. Cordae
Season 1
Working freelance? Occupying another role outside of the traditional 9-5? Then you know being your own boss can come with the need to better protect yourself from bumps in the road.
That’s why it’s important to set aside funds for when unplanned expenses come up – otherwise known as a cash reserve.
This content reflects the real-life experiences of individuals. Participants received compensation for sharing their stories. Venmo is not making any recommendations regarding finances. Consider seeking advice from your financial advisor.
Why cash reserves are essential.
Setting aside a meaningful amount of money with bills on the way can be stressful. Doing so, however, reduces the need for riskier options in a crisis – like unsecured loans. These have the potential to harm your long-term financial stability worse than the issue at hand.
It’s ok to start small.
Remember that you can see real, meaningful progress with only a few dollars from each paycheck. Stay consistent and you can make larger contributions as you gain confidence.
How much should you save?
Experts typically recommend having 3-6 months' worth of savings in your cash reserve, but not everyone’s situation is the same. Consider these factors...
What amount feels right?
Is work consistent enough to lower your goal or contribute less?
Are there other savings to account for?
You can also simplify things by getting help. A financial expert, for example, can give advice and directly manage your money. Automatic transfers can make contributions to your reserve without you forgetting.
Did you know?
You can get paid up to two days early at no extra charge with Direct Deposit on Venmo.1
Set boundaries with your reserve.
One of the biggest challenges in building a reserve is leaving it alone when you want to shop. That cash can be tempting but remember it’s there for a reason. Keep your reserve somewhere accessible, but not instantly available, so you avoid the urge to use it for other reasons.
How to build a cash reserve.
There are a lot of ways to save money, but here are a few ways to do so while still setting aside money for unplanned expenses.
Start a habit.
Use the advice above to set a goal and make a schedule for contributions – then stick to it. Keep track of your progress so you can adjust spending, but don’t forget to reward yourself when you’ve reached the goal.
Monitor your cash flow.
Trying to make contributions on top of bills and rent? By looking at your cash flow over time, you may notice weeks where you have more income than others, making it easier to set a little extra to the side.
Find savings opportunities.
If cutting into your income is too much, take advantage of moments when you have a temporary influx of cash. Birthdays, holidays, and debit or credit card rewards are just some of the ways you can make regular contributions without affecting the bottom line.
Looking for more ways to manage your finances?
The Venmo Debit Card lets you automatically2 earn rewards on everyday purchases – no monthly fee or minimum balance required. Use your Venmo balance to pay in store or online the same way you settle up with friends. Plus, no-cost ATM access in the U.S. lets you withdraw cash when you need it.3
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