Freelancing and global work have ensured that distance and borders are no longer barriers to recruitment. Whether you are in Abuja, Abidjan, or Aberdeen, you can work with clients from anywhere in the world.
But there’s one thing many people don’t talk about: freelance payments don’t always come in regularly. Sometimes, you’re so busy you have to turn down work. Other times, there is a draught. This is very different from a regular job, where you know exactly what you’ll get paid each month.
With changing currencies, taxes, and unpredictable income, global workers need a strong financial safety net for emergencies. In this article, you’ll learn why a financial buffer matters and how you can build one.
Also read: How to save in USD as a remote worker
A financial buffer is an emergency savings fund set aside to cover unexpected, significant expenses or sudden loss of income, acting as a safety net for financial shocks. This money is kept in an easily accessible account, separate from investments, to prevent drawing on investments during a downturn or taking on costly debt. Common examples include covering car repairs, medical costs, or appliance failures, providing peace of mind and financial flexibility.
Unlike conventional jobs where you earn a salary with employer-provided pensions or health insurance, global freelancing roles can involve feast-or-famine cycles, where high-earning months are followed by periods of scarcity. Building a financial buffer safeguards against such volatility, allowing you to weather job loss, medical emergencies, or travel emergencies without resorting to debt or getting stranded.
Building a financial buffer is crucial because of factors such as:
If you don’t have a safety net, these risks can quickly throw off your finances. You might end up in debt or struggle to cover your basic needs.
If you are a global worker looking to build a financial buffer, here’s how to do it:
Before you go ahead, you must first know where you are starting from. Take stock of your finances by listing your assets (such as savings, investments, and property) and identifying your liabilities (including debts and loans). Start with a clear picture of your earnings and spending across currencies. Global workers often face hidden costs, such as transaction fees, conversion charges, or local taxes, which need to be factored into their budget.
Track your income and expenses meticulously. Use apps like YNAB (You Need A Budget) or Mint to categorise spending, revealing areas for cuts. Assess risks, including cost for emergency travel or health issues abroad. This assessment forms the foundation for realistic goal-setting.
Open a dedicated account, preferably in a stable currency such as USD, EUR, or GBP, to store your buffer. You can get a multicurrency account on Grey within minutes when you sign up. Keeping it separate reduces the temptation to dip into it for non-emergencies.
Set up automatic transfers so that a portion of your income is deposited directly into your buffer account. Even if your income is irregular, transferring a fixed percentage (e.g., 15–20%) can help you steadily build your buffer.
Where possible, hold part of your savings in strong international currencies. This helps protect your buffer in the event of a sudden devaluation in your local currency.
Global workers often pay premium prices for convenience from international transfers, to roaming charges, and rentals. Reviewing these costs and opting for smarter alternatives (such as digital banks or co-living spaces) can free up more funds for your buffer.
After you’ve built up your emergency fund, you might want to look at low-risk investments like money market funds, government bonds, or stable savings accounts. These options can help your buffer grow without taking on too much risk.
Also read: Getting health insurance and saving in foreign currencies
As a global worker, building a financial buffer means planning ahead, even when things are uncertain. By understanding your situation, setting clear goals, and using the right strategies, you can create a strong financial base. Saving in different currencies also helps protect you if your local currency drops in value.
Grey has proven to be a valuable financial tool for global workers, providing all you need to build a financial buffer. With an intuitive dashboard that helps you monitor your spending, low transaction fees to maximise your earnings, and multi-currency accounts to diversify your savings, you have more than a payment solution at your fingertips.
Sign up on Grey today to safeguard against rainy days.
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