Freelance meets finance

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Working freelance? Taking gigs? Occupying a role outside 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 temptation to use riskier options in a crisis – like unsecured loans and retirement funds. These have the potential to harm your long-term financial stability worse than the issue at hand.
It’s ok to start smallIt’s ok to start small
If cash reserves sound intimidating, remember that “meaningful” is subjective. You can see real progress with just a few dollars from each paycheck so long as you stay consistent and make larger contributions as your confidence grows.If cash reserves sound intimidating, remember that “meaningful” is subjective. You can see real progress with just a few dollars from each paycheck so long as you stay consistent and make larger contributions as your confidence grows.
5 common emergency expenses5 common emergency expenses
When you might need a cash reserveWhen you might need a cash reserve
1. Medical/Dental Bills 2. Pet Care 3. Home/Car Repairs 4. Unemployment 5. Essential travel 1. Medical/Dental Bills 2. Pet Care 3. Home/Car Repairs 4. Unemployment 5. Essential travel
How much should you save?
Experts typically recommend having 3-6 months’ worth of expenses saved in your cash reserve, but not everyone’s situation is the same. Some factors to consider...
  • What amount feels “right?”
  • Is work consistent enough to get by with a lower goal or contribution amount?
  • Are there other savings to account for?
Another way to simplify things can be to get some help. A financial expert, for example, can give advice or help directly manage your money. Automatic features such as scheduled transfers can also make contributions to your reserve without a second thought. Direct Deposit on Venmo can even get you paid two days early - at no extra charge – so you can settle up and still contribute on time.* Learn more.
Out of sight, out of mind
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 plenty of ways to save money, but here’s a few popular methods for doing so while still setting aside money for unplanned expenses...
Start a habitStart 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.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 flowMonitor 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.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 opportunitiesFind 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.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.
Plan your reserve
Feeling stuck? Use our cash reserve estimator to get a quick idea of how much you should set aside, plus insights on how long it could take to reach using your current savings plan.
Looking for more ways to manage your finances?
The Venmo Debit Card allows you to make all your regular purchases while earning cashback automatically.¹ You can instantly add funds from a linked account, then pay friends and your favorite stores from the same source. Additional features like automatic reloads (if available), which pull from a linked account to cover what your balance can’t, and no-cost ATM access also help ensure you’re always connected to your money – even when you need cash.²
*Early access compared to standard banking practice of posting funds at settlement and subject to your employer providing pay information to the bank prior to payday. It may take up to two pay cycles for Direct Deposit to take effect. Transactions are reviewed, which may result in delays or funds being frozen or removed from your account.¹Each Venmo Offer Powered by DOSH is available for a limited time only at participating merchants on qualifying purchases (as stated in the particular offer and subject to the full program terms). By participating, you agree that DOSH may create a wallet for you on its system in order for you to earn and redeem Venmo Offers. Any Venmo Offer that you earn will be transferred to your Venmo account. All offers made available to you may become unavailable without notice. Additional terms and exclusions apply. See full Venmo Offers Powered by Dosh Terms of Service and Privacy Policy here.The Venmo Mastercard® is issued by The Bancorp Bank, N.A pursuant to license by Mastercard International Incorporated. Card may be used everywhere Mastercard is accepted in the U.S. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. The Bancorp Bank, N.A is issuer of the Card only and not responsible for the associated accounts or other products, services, or offers from Venmo.All trademarks and brand names belong to their respective owners. Use of these trademarks and brand names do not represent endorsement by or association with this card program. All rights reserved. Standard data rates from your wireless service provider may apply.²ATMs must display the Mastercard®, Cirrus®, PULSE®, or MoneyPass® acceptance marks. Up to $400 USD daily withdrawal limits apply. Transactions at non-MoneyPass ATMs have a $2.50 ATM Domestic Withdrawal fee. No fee for MoneyPass ATM Withdrawals in the U.S. ATM operator fees may also apply. See Cardholder Agreement for details.