Saving Money As A Freelancer: Best Money Practices

Freelancing has its perks:

The flexibility, the be-your-own-boss arrangement, and the opportunity to work with lots of different people and companies. 

However, you can’t have the ying without the yang: the inconsistent income; the added pressure of paying your own pension; and the likelihood of not being invited to office Christmas parties.

So, when you don’t have a reliable salary, what is the best approach to a long-term plan for your finances?  

We’re joined by Sheridan from Chip, the savings app offering the best return in the market, to talk about how to maximise your lifetime savings as a freelancer.

Don’t let your savings just sit in your bank account

With interest rates in the UK at a record low, it is more important than ever to make sure your money is working as hard as you are. 

Chip’s new account, Chip+1, offers the market’s leading return of 1.25% – that’s 125 times better than the big banks. 

Will this percentage may not look big to you, you’ll be earning a whole lot more bonus on your savings than if it was to just be sitting dormant in your regular bank account. 

To unlock access to Chip+1, be sure to use our exclusive VIP passcode, TW1N3P, when signing up. For more information on how to get set up, head to the bottom of this article.

 Adjust your mindset

Before adopting the practical methods, you have to ensure you are approaching your finances with the right attitude. 

If a global pandemic was motivation enough, having back up funds is very important, particularly for freelancers. 

It’s common to think of saving money as just less money to have fun with now, but really it’s just money for your future self to enjoy. You aren’t losing your money by saving it – it is still your money. 

As a generation who is often denoted by instant gratification, yes, saving isn’t as fun as spending, but by delaying, it makes the satisfaction of spending it that much greater.

Figure out how much you can afford to actually save first

You can often see a big spike in income when you start freelancing, but what are you going to do with it all, but remember you don’t have a pension, sick pay, or holiday pay anymore.

You can’t save what you don’t have, so step one involves auditing your ingoings and outgoings. 

Exercise a bit (or a lot, if you’re like me) of self-discipline when segregating essentials from luxuries, no matter how much you think you need Amazon prime; essentials include your mortgage or rent payments, bills, basic food needs, and any transport. 

Deduct the sum of the above from your pay, and what your left with is your disposable income. Decipher how much you can live off comfortably and move the remaining portion aside. 

Or, think about your money in terms of paying yourself. Could you live on 90% of your current income? What about 80%? If so, make it happen and save the rest.

Tools and apps, like Chip, calculate how much you should save based on your spending behaviour and automatically moves it asides into an account with the best returns.

Opting for having a separate account to your primary bank account, too, removes the temptation to spend.

Get into the routine of having a routine

Creating as much structure in a structure-less work environment will make developing good money habits a lot less difficult.

Try giving yourself a salary, and pay yourself based on that figure each month.

Check out Glassdoor or do a quick Google search of your average income for your industry online to gage what a realistic salary looks like for your role.

On the months or jobs you perhaps earn significantly higher than average, by all means put more away, but avoid “lifestyle creep”, that automatic thing we do of spending more the more we earn.

To help with this, when you know the date you are set to be paid, set up a direct debit.

Similarly, Chip’s Payday Put Away feature registers your pay day and moves the money aside automatically.

So, if you’re starting out freelancing, or just want to start building real wealth, download Chip for Apple or Android and unlock your Chip+1 account to access the market’s leading return. Be sure to use our exclusive VIP pass code TW1N3P when signing up. To find out more, head to Chip’s website at

How to use your VIP pass to unlock 1.25% on savings

1. If you haven’t signed up yet

If you’ve downloaded Chip but are yet to complete the signup journey, you’ll find the last page of the sign up process will ask if you have been invited by a friend and prompt you to type in your passcode (TW1N3P)

2. If you have signed up, but didn’t use your code

If you skipped the prompt, don’t fret. Simply head to the ‘Profile’ tab within your app and find ‘Enter VIP passcode’.

You’re done – you can now start automatically earning 1.25% return on your savings!



Chip automatically stashes away what you can afford so you can spend it on the things that really matter.