Why Freelancers Fail…And Why You Don’t Need To

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Today’s media is inundated with stories of small businesses trying to take off and failing miserably. From the extremes of the high-risk high-reward Silicon Valley startup culture to the everyday financial struggles of one-man shop creative freelancers, it seems like every freelance story is fraught with the drama of the constant fight for survival. 

But it doesn’t have to be. And there are a lot of success stories that we don’t hear about. What is one of the simplest things you can do to give yourself a good chance of success as a freelancer? Separate your business and personal expenses

When you’re first starting out, it seems to makes sense to use one account for everything. If you’re launching a gig that centers around a skillset, it seems logical–you’re one person, and the productivity of your income depends exclusively on you, not a team or company. You should only need one account. Unfortunately, this is also a great way to get your tax reports completely jumbled and your salary diminished. As you transition to full time freelancing, you may find it beneficial to consider keeping separate accounts–one for your freelance work and one for personal expenditures. Here’s why:

1. You’ll have greater visibility into the health of your business.

Much like keeping a physical folder of your business receipts and expenses, having a separate bank account for the money you spend and earn in your freelance work can help you keep painstaking track of your finances–and it’s digital, so you can’t lose it to a flood, fire, or wayward coffee cup. With two bank accounts under your wing, you can clearly see where money is coming in and out if you separate client payments from your personal bills and expenditure.

2. You can pay yourself a fixed salary, which could help your finances be more stable. Income fluctuation is a very real struggle for freelance workers, but with better management of your income and expenses, you can minimize the impact of a varying paycheck. It can also help you operate your self-employment like a small business, where you are both the employer and the employee.

3. You’ll be better prepared for tax season. Whether you need to file your estimated taxes quarterly or annually, separating your business from personal expenses can save you time and give you the peace of mind that comes from knowing you’ve met your IRS obligations. 

But if the prospect of somehow keeping track of two bank accounts sounds daunting, don’t worry–Oxygen is perfectly set up for you to have personal and business accounts that you can manage from one app. Here’s why:

  • Oxygen can help you establish an LLC in order to distinguish your personal and business spending. You can kickstart your business, and from the comfort of your Oxygen app. 
  • Oxygen presents your financial picture and projections so you can plan accordingly. Wouldn’t it be amazing if all your finances were charted out, and you could make educated monetary decisions based on that? Oxygen’s got you covered.
  • If approved*, you can immediately access a line of credit. Fronting bills, making advance payments, and getting what you need when you need it just got a lot easier. 

Don’t fall into the freelancer trap. Download the Oxygen App today and avoid the common mistakes and pitfalls of the industry. 


Oxygen provides personal and business credit and banking solutions for freelancers, including LLC creation services through our partner, CorpNet, Inc. Our team of experts has created a digital banking platform that provides a seamless user experience and instant credit. We are equipped to become the financial infrastructure for the 1099 nation and the face of financial inclusion. 

*Oxygen account holders can apply for credit after three (3) consecutive months of deposits is placed into your Oxygen account. Oxygen’s credit and loan products are offered by ReliefClub, Inc.; subject to application approval.

Banking Services provided by The Bancorp Bank, Member FDIC. The Oxygen Visa®  Debit Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.



Oxygen is providing today’s hustlers access to free banking and fair credit and has been awarded Best Digital Bank Account in the US.