One of the best things about being a freelance developer digital nomad is that you can work from anywhere in the world and work for anyone in the world. This gives you an amazing sense of freedom and flexibility that is unrivalled in other industries. A drawback of this is that being this flexible makes it hard to stay on top of your finances. Here are some tips to help you manage your finances as a freelance developer digital nomad.
Request Payment in Dollars
The dollar can fluctuate against other currencies. This means that if you are paid in a local currency you may not know how much you will be getting until the money hits your bank account. It will depend on that day’s currency exchange rate which could leave you seriously out of pocket. If you always request payment in dollars, you know exactly how much money you are receiving for your work which makes it a lot easier to plan your budget.
You don’t need to overcomplicate the payment procedure. Ask your clients to use the Ria Money Transfer App to make payments and always make sure that your money goes into the same account. That way you will be able to see very easily what money you have coming in. This will help you to keep on top of what invoices have been paid and which ones you need to chase too.
Plan Your Budget
Make a list of the bills you have got going out each month and what you will expect to receive in payments to help you plan your budget. Keep your bill paying money in a separate account and make sure you always have enough money to make payments. Don’t forget things like your pension policy and any investments you pay into regularly. Keep a separate bank account for any surplus that you can spend as you want to. That way you can plan a fun budget too and you will be less likely to go overdrawn.
Request Regular Payments
It can be daunting to ask a client for money. However, if you sort out the finer points before you agree to take on the project, this will make things easier for you. If you are working on a long-term project, request payment either weekly or monthly. This way you don’t have to wait until the end of the project to receive money for it and you will still be able to pay your bills. For a shorter-term project, you can ask for a lump sum payment. Make sure that a short project doesn’t grow into something longer term without rearranging the payment terms though or you could find yourself waiting a long time for payment.
Follow these steps to stay on top of your finances while working as a freelance developer digital nomad and you will take the headache out of managing your budget on an irregular income.