FBAR filing: What international freelancers and expats must know

Where to keep your emergency fund is not simply a question of finding an account that pays interest. The place you choose needs to give you quick access when an unexpected bill, job loss or family expense arrives, while also helping your money retain its value over time. Keeping emergency savings in an account that is difficult to access can create unnecessary stress when you need the money most, while leaving everything in cash can expose you to inflation and currency movements.

The simplest approach is to keep your emergency fund somewhere separate from your everyday spending account, with access available within a day or two. A dedicated savings account can work well because the money remains accessible without sitting in your main account where it may be easier to spend.

Currency matters too, particularly if your local currency is unstable. Holding part of your emergency fund in a stable currency such as USD can help protect its real value against inflation. The right balance depends on where you live, where your future expenses will arise and which currencies you regularly use.

Where should you keep an emergency fund?

An emergency fund needs to be available when life does not go according to plan, so the account you choose matters almost as much as the amount you save. The best place should protect your money, give you reasonably quick access and make it less tempting to spend on everyday purchases.

A strong emergency fund should do four things:

• Keep your money safe: Keep the money with a reputable bank or financial institution where your savings are protected under the relevant deposit protection rules.
• Stay liquid: You should be able to access the money within a day or two without paying significant withdrawal penalties or waiting for a long transfer period.
• Be separated: Keeping emergency savings in a separate account reduces the temptation to dip into the fund for regular spending.
• Protect its value: Interest can help offset inflation, while holding part of your savings in a stable currency may be worth considering if your local currency frequently loses value.

If you earn in USD, get paid by global clients, or regularly spend in foreign currencies, a dedicated account offers a practical balance between access, safety and keeping the money separate from everyday spending.

Best savings accounts for an emergency fund: HYSA vs MMA vs checking

The right account for an emergency fund needs to balance safety, access and the opportunity to earn interest. High-yield savings accounts (HYSAs) and money market accounts (MMAs) can offer competitive yields while keeping deposits protected by FDIC or NCUA insurance. Checking accounts make everyday spending easier, but usually offer little or no interest.

When choosing where to keep an emergency fund, consider how quickly you may need the money and whether earning interest or having immediate access matters more. The comparison below looks at the main differences in access, yield and safety.

When choosing where to keep an emergency fund, ask yourself one honest question: Would I be tempted to spend this if it’s too easy to reach?
Also read: How to build an emergency fund when you get paid in a foreign currency

Emergency fund vs general savings: what is the difference?

An emergency fund and general savings may sit in similar accounts, but they serve very different purposes. The emergency fund is reserved for unexpected situations that affect your ability to meet essential expenses, while general savings can be used for goals you have planned and can anticipate.

• Emergency fund: This is your financial safety net for situations such as losing your job, facing an unexpected medical bill or needing urgent car repairs. It should remain separate from everyday spending and be easy to access when a genuine emergency arises.
• General savings: This money is set aside for planned expenses and personal goals, such as a holiday, wedding, new car or home deposit. Because you expect to spend it, there is less reason to treat the balance as untouchable.

Keeping the two separate can make it easier to protect your emergency fund while still allowing you to enjoy the money you have deliberately saved for other priorities.

Why the currency you save in matters

The value of an emergency fund is not determined only by the number on your balance. Inflation can reduce what that money buys, while a fall in the value of your local currency can make imported goods, international bills and dollar-priced services more expensive. This is why the currency you save in can matter, particularly when some of your future expenses are priced in USD.

Consider a simple example. Suppose you save the equivalent of $1,000 in a local currency at the beginning of the year. If that currency loses 20% of its value against the dollar over the next 12 months, the same local-currency balance would be worth only about $800 in USD. Holding $1,000 in USD instead would preserve the dollar value, although it would not eliminate inflation or other risks.

For people who earn internationally, Grey provides eligible users with USD accounts, making it possible to hold money in dollars rather than converting everything into local currency immediately. You can set up a Grey Pouch to set some of that money aside and keep your savings separate from everyday spending.

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Frequently asked questions

Should an emergency fund be in a high-yield savings account?

A high-yield savings account can be a good place for an emergency fund because it keeps your money accessible while allowing you to earn interest. Choose an account with low fees and appropriate deposit protection. The priority should be safety and access, not simply finding the highest rate.

Is it safe to keep an emergency fund in dollars?

It can be, particularly if you expect some future expenses in USD or your local currency is prone to losing value. However, holding dollars does not remove inflation or currency risk completely. Consider keeping enough in the currency you are most likely to need for everyday emergencies.

How quickly should I be able to access my emergency fund?

Ideally within a day or two., You should be able to access your emergency fund quickly enough to cover an unexpected expense without relying on credit. A dedicated savings account with straightforward transfers can work well, while accounts with withdrawal penalties or long lock-in periods may be less suitable.

Should an emergency fund be kept separate from everyday savings?

Yes. Keeping your emergency fund in a separate account can make it easier to avoid spending the money on routine purchases or planned expenses. It also creates a clear boundary between money reserved for unexpected costs and savings intended for holidays, major purchases or other financial goals.

How much money should you keep in an emergency fund?

A common target is 3–6 months of essential expenses, but the right number depends on how stable your income is, how many people rely on you, and how easy it would be to replace income if you lost it. If saving that much feels overwhelming, start with a smaller milestone (for example one month of essentials) and build from there.

Should you invest your emergency fund?

Usually, no. Emergency funds are for stability and quick access, not long-term growth. Investments can fall in value at the wrong time, and selling may take longer than you want. If you want to invest, do it with money that is separate from your emergency buffer.

When we think about keeping money aside, it’s easy to picture putting aside $50, $100 or even more at once. But what about the smaller amounts? The $0.50 left after a purchase. The $2 you could put aside today. The few dollars that might otherwise sit in your balance until you spend them without really noticing.

Individually, they might not seem important. Together, and given enough time, they can tell a very different story. That’s the idea behind saving your spare change. Instead of waiting until you have a large amount available to save, you start with what you have and let consistency do the heavy lifting.

Do small amounts of money really add up?

They can, and you don’t have to save much at a time to start seeing a difference. Think about $1. Put it aside once, and you have $1. Do it every day, and you’ll have $30 or $31 by the end of most months. Keep going for a year, and that becomes $365. The same idea applies to even smaller amounts. What matters is how often you save them and how long you keep going.

It can also help to keep your savings separate from the money you use every day. When those small amounts have their own place, it’s easier to leave them alone and see how much you’ve managed to put aside. You might still be wondering how much difference a few cents at a time can actually make. So, let’s look at the numbers.

The maths of saving small, regularly

Imagine you make 30 purchases in a month and put aside an average of $0.50 each time. That would give you $15 by the end of the month. Keep doing it for a year and you’d have $180. Increase the average amount to $1, and you’re looking at $30 a month, or $360 over a year.

Here’s how a few different examples could play out:

These are just illustrative examples. The amount you actually set aside a will depend on how often you spend and how much you put aside each time.
Still, the maths shows why small amounts are easy to underestimate. $0.50 might not change your finances today, but saving it repeatedly can turn it into $180 over a year.
And you don’t necessarily have to remember to move that money yourself after every purchase. That’s where round-ups come in.

What are round-ups?

Round-ups are a way to pool the spare change from your everyday purchases automatically. Say you make a card payment of $4.60. With round-ups, the transaction can be rounded up to $5, with the extra $0.40 set aside for you. Spend $12.25, and another $0.75 can go towards your other things.

The individual amounts are small, but each eligible purchase gives you another opportunity to save. Instead of waiting until the end of the month to see what you have left, you can build your savings little by little as you spend. It turns something you already do regularly, paying for everyday purchases, into a chance to put a little money aside.

How to make it automatic

Most of us have probably told ourselves, “I’ll save whatever is left at the end of the month.” Then the end of the month arrives, and there isn’t much left.

One way to make keeping money for future plans easier is to stop relying on yourself to remember to do it. When part of the process happens automatically, you can put money aside regularly without having to make the decision again and again.That’s especially useful when you’re starting small. Moving $0.50 or $1 manually might not feel worth the effort every time, but automating those small contributions means they can keep happening in the background.

Over time, consistency can matter more than having one particularly good month. You might save $20 one month and $8 the next, but you’re still making progress. You can use the same approach for different goals. Maybe you want to build an emergency fund a little at a time, save for a trip or simply create a small buffer for unexpected expenses. The goal doesn’t have to be huge. What matters is creating a habit you can keep.

How to turn on Round-ups in Grey

If you use your Grey card for everyday purchases, Round-ups can help you turn those transactions into small contributions towards a Pouch.

Once you turn on Round-ups, Grey rounds eligible card payments up and moves the difference into the Pouch you choose.

For example, if you spend $7.30, the purchase can be rounded up to $8 and the remaining $0.70 goes into your Pouch.
You carry on spending as usual, while those small amounts collect separately.

To get started, open Grey and:

1. Go to Pouch.
2. Turn Round-ups on.
3. Choose the Pouch where you want your round-ups to go.
4. Use your Grey card as usual and let your spare change start collecting.

You can check your Pouch whenever you want to see how those small contributions are growing. Saving doesn’t always need a big beginning. Sometimes, it can start with $0.20 after lunch, $0.60 after a coffee or $0.75 after another everyday purchase. Give those amounts somewhere to go, keep doing it, and the maths can do the rest
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Open a Pouch today
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Frequently asked questions on saving small amounts of money

Do small amounts of money really add up?

Yes. Small amounts can become more meaningful when you keep them aside consistently over time. For example, a $1 a day would give you $365 after a year.

What are Round-ups?

Round-ups automatically set aside the spare change from eligible card purchases. If you spend $6.40, for example, the transaction can be rounded up to $7 and the extra $0.60 can go towards your future plans.

How much can Round-ups keep in a year?

It depends on how often you use your card and how much is rounded up from each eligible purchase. For example, an average of $0.50 saved across 30 transactions each month would equal $180 over a year.

Is automatic saving better than saving manually?

Both can work. Automatic saving can make consistency easier because you don’t have to remember to transfer money yourself each time. You can also combine automatic contributions with larger manual transfers when you have more money available to save.

Do round-ups happen every time I use my card?

Round-ups apply to eligible card transactions when the feature is turned on. The amount set aside will vary depending on the value of each purchase.

How do I turn on Round-ups in Grey?

Open the Grey app, go to Pouch and select Round-ups. From there, you can turn the feature on and choose the Pouch where you want your spare change to go.

A late client payment was what first pushed me to build an emergency fund. As a freelancer getting paid in dollars, though, putting money aside wasn’t quite as simple as choosing an amount each month.

My income could vary, and I also had to decide if it made more sense to keep my emergency savings in dollars or convert them.

If you earn in a foreign currency, these are questions worth considering when building your own emergency fund.

If you’re figuring out how to build an emergency fund on a variable or foreign-currency income, a common target is three to six months of essential expenses. You don’t need to get there all at once. Here’s how to start with what you have and build from there.

What is an emergency fund?

An emergency fund is money you keep specifically for expenses you didn’t plan for. Think of it as your financial backup for the moments when life decides to ignore your budget.

It could cover your expenses if you lose a source of income, pay for an urgent repair, replace a laptop you need for work, or help with another essential cost that comes out of nowhere.

The key word here is emergency. A holiday you’re planning or a new phone you want to buy shouldn’t come out of this fund. Those are expenses you can plan for separately.

This distinction can be especially important for freelancers, contractors, and anyone with an irregular income. If a client pays late or you have a quieter month, you may not have another paycheque arriving on a predictable date. Your emergency fund gives you a buffer so you’re not relying entirely on your next payment.

The same applies when you earn in a foreign currency. Your income may be affected by exchange rates when you convert it into the currency you use for everyday expenses, so having money specifically reserved for unexpected situations can give you more flexibility.

Why an emergency fund matters even more for freelancers

If you freelance, irregular income isn't always just about earning a little more one month and a little less the next. Sometimes, there may be a gap between projects or payments altogether.

A 2025 survey by Leapers found that 53.4% of freelancers had experienced a significant period without income because they couldn't find work during the year. And while some had substantial financial buffers, 28% said their emergency savings would last eight weeks or less.

That's where having money specifically reserved for emergencies can make a real difference. It gives you something to fall back on when work slows down, a client pays late, or an unexpected expense arrives during an already quiet month.

The United States Consumer Financial Protection Bureau also recommends using larger or one-off payments to build emergency savings, rather than relying solely on fixed monthly contributions.

How much emergency fund do you need?

A common starting point is enough to cover three to six months of essential expenses, but the right amount depends on your own costs and how predictable your income is.

Start by adding up the expenses you couldn’t easily pause if your income stopped: rent or mortgage payments, groceries, utilities, transport, insurance, debt repayments and other essential bills.

If those expenses total $2,000 per month, for example, your targets could look like this:

If you earn in a foreign currency but spend mainly in another, calculate your target based on the currency of your essential expenses first. That gives you a clearer picture of what the fund actually needs to cover.

You can then decide which currency, or combination of currencies, makes the most sense for keeping that money.

And remember, three to six months is a reference point, not a starting requirement. Your first goal could be $500, one month of expenses or another amount that feels achievable.

If your income varies significantly from month to month, you may eventually feel more comfortable towards the higher end of the range.

Where should you keep your emergency fund?

Your emergency fund should be separate from the money you use every day, but still easy to access when you need it. Keeping it in a dedicated account or savings space can make it easier to know what’s available to spend and what’s there for emergencies.

If you get paid in a foreign currency, there’s one more thing to think about: which currency should you keep it in?

You could keep some in the currency you earn and some in the currency you use for your essential expenses. It really comes down to where you live, how you get paid and what you’re most likely to need the money for.

A multi-currency account also gives you the flexibility to hold money in the currency you earn instead of converting everything as soon as you get paid.

Just keep exchange rates in mind. If you save in one currency but need to spend the money in another, its value may have changed by the time you convert it.

How to build an emergency fund on an irregular income

When you don’t receive the same salary on the same date every month, advice like “save $500 every payday” might not be particularly helpful.

Instead, you can build your emergency fund around the money that actually comes in.

1. Pay yourself first

When a payment arrives, decide what goes into your emergency fund before you start spending the rest.

It doesn’t need to be a huge amount. Even moving a small amount immediately creates a habit of treating your emergency fund as part of your financial priorities rather than something you contribute to only if there’s money left at the end of the month.

2. Use a percentage instead of a fixed amount

This is the method I find particularly useful for irregular income.

Instead of deciding that you need to put aside exactly $200 every month, choose a percentage of each payment. If you decide on 10%, for example, a $1,000 payment would add $100 to your emergency fund, while a $3,000 payment would add $300.

You contribute more during stronger months and less when your income is lower.

The percentage itself is up to you. The important thing is choosing something realistic enough that you can keep doing it.

3. Make small amounts count too

Not every contribution has to come from a big client payment.

Small amounts can quietly build your emergency fund over time, particularly when the process happens automatically.

One way to do this is through Round-ups. Instead of manually moving money every time you spend, the difference between your purchase and the rounded amount can be put aside automatically.

For example, a $7.60 card payment could be rounded to $8, with the extra $0.40 going towards your fund.

It won’t build three months of expenses overnight, but combined with your regular contributions, it can help keep your fund moving in the right direction.

4. Add more when you have a good month

Irregular income has an upside too: some months may be much better than expected.

When that happens, consider putting a little more into your emergency fund rather than immediately increasing your spending.

You don’t have to save every extra dollar. The idea is simply to use stronger months to make up for the months when contributing is harder.

5. Review your target every few months

Your emergency fund shouldn’t be a number you calculate once and never look at again.

Rent can increase. You might move countries, take on new financial responsibilities, or see your average monthly expenses change.

Check your target every few months and ask whether it would still cover the number of months you originally planned for.

And if you ever need to use the fund, that’s exactly what it’s there for. Once things settle down, you can start building it back up again.

How to start your emergency fund with Grey

If keeping your emergency money separate is the part you struggle with, Pouch gives you a dedicated space for it inside Grey.

You can create an Emergency Pouch, give it a target, and keep the money separate from your everyday Grey balance. Pouches are available in USD, EUR, and GBP, which can be particularly useful if you already receive income in one of those currencies.

For example, if you get paid in USD, you can create your emergency Pouch in USD and fund it directly from your USD balance. You can also fund a Pouch from another supported currency, with the applicable conversion details shown before you confirm.

You can then turn on Round-ups and choose your Emergency Pouch as the destination. Spare change from eligible Grey card payments will automatically go into that Pouch, adding to the contributions you make yourself.

You can track your progress towards your target in the app, while keeping the money separate from what you use for everyday spending.

Your emergency fund doesn’t need to start with thousands of dollars. The important part is giving it a place and starting with an amount that works for you.

Open an Emergency Pouch and make your first deposit today.

Frequently asked questions

How much should I put in an emergency fund?

A common target is enough to cover three to six months of essential expenses. Your ideal amount depends on your monthly costs, income stability, financial responsibilities, and how quickly you could replace lost income. If that target feels too large right now, start with a smaller amount and build from there.

Is $1,000 enough for an emergency fund?

$1,000 can be a useful first target, especially if you’re starting from zero. It may cover smaller unexpected expenses without affecting your everyday budget. Over time, you can continue building towards an amount that covers several months of essential expenses.

Should I build an emergency fund if my income is irregular?

Yes. An emergency fund can be particularly useful when your income changes from month to month because it gives you a buffer during quieter periods or when payments arrive later than expected. Instead of contributing a fixed amount, consider putting aside a percentage of each payment you receive.

Where should I keep my emergency fund?

Keep your emergency fund somewhere separate from your everyday spending but easy to access when needed. Depending on your needs, this could be a dedicated account, a high-yield savings account, or a separate money-management space. Consider accessibility, fees, withdrawal restrictions, interest, and the currency you’ll eventually need.

Should I keep my emergency fund in USD?

It depends on how you earn and spend your money. If you’re paid in USD and expect some future expenses to be in USD, keeping part of your emergency fund in dollars may make sense. If most of your essential expenses are in another currency, consider how exchange-rate movements could affect the amount available when you need to convert it.

Should I pay off debt or build an emergency fund first?

You don’t necessarily have to choose one exclusively. Having a small emergency buffer can help you deal with unexpected expenses without taking on additional debt. From there, you can decide how to divide your available money between growing your emergency fund and paying down debt based on the cost and urgency of your debts.

What should I use my emergency fund for?

Your emergency fund is for necessary expenses you couldn’t reasonably plan for, such as an unexpected loss of income, urgent repairs, essential travel, or another unforeseen cost. Planned expenses, holidays, shopping, and non-essential purchases are better kept separate so your emergency money remains available when you really need it.

Retirement savings rarely feel urgent when you are in your 20s, particularly when your income is still developing and most of what you earn is already committed to rent, family responsibilities, debt, travel or simply building a life. As your career progresses, however, your priorities begin to change. By your 30s, you may be earning more and able to put more aside, while your 40s and 50s often bring a different question: is what I have saved actually enough for the future I want?

This is where Retirement Savings Goals can provide a useful point of reference. One commonly used benchmark suggests having about one times your salary saved by 30, three times by 40, six times by 50 and around eight to ten times your salary by retirement.

These figures should not be treated as strict rules because the right amount depends on your income, lifestyle, pension arrangements, investments and the age at which you plan to retire. Instead, they offer a simple way to see where your savings stand and whether you may need to increase your contributions as your income and circumstances change.

Also read: How to build an emergency fund when you get paid in a foreign currency

How much should you have saved at each age?

Retirement savings benchmarks are designed to give you a simple way to judge whether your savings are broadly keeping pace with your income as you move through different stages of your working life. The familiar figures, such as one times your salary by 30, three times by 40 and six times by 50, are not random numbers. They come from financial planning models that make assumptions about when someone starts saving, how much they contribute each year, investment growth and the income they may need to maintain their lifestyle after leaving work.

One widely used approach assumes that a person begins saving around age 25 and puts about 15% of their annual income towards retirement. The aim is to build enough wealth over time to replace part of their pre-retirement income, with the required savings increasing as retirement gets closer.

To use the benchmarks, take your current annual salary and multiply it by the target for your age. If you earn $70,000 at 40, for example, a 3x benchmark would suggest $210,000 in retirement savings. These figures are guides rather than rules, so your actual target may be higher or lower.

If you are deciding how to balance saving and investing across different time horizons, see our guide to saving vs. investing.

How much should you have saved by 30?

By 30, a commonly used retirement savings target is about one times your annual salary. So, if you earn $50,000 a year, the benchmark would put your retirement savings at around $50,000. Reaching that figure can be difficult when you are still building your career, paying off debt or dealing with major expenses, so it is better viewed as a guide than a pass-or-fail test.

Starting early matters because your first contributions have more time to grow. Money invested for retirement can earn returns, which can then generate further returns over the years. This compounding effect becomes increasingly valuable when you give your savings several decades to build.

The bigger lesson is not to wait until your income is higher before saving. Even if you cannot reach the 1x target by 30, regular contributions can put you on a stronger path. Increasing the amount you save as your salary grows can also help you catch up and build towards the higher Retirement Savings Goals that apply in your 40s and 50s.

Also read: Should you save in dollars, pounds or euros?

Retirement savings targets at 40, 50 and 60

By ages 40, 50 and 60, your retirement savings target increases as your income and working years progress. Common Fidelity benchmark frameworks suggest aiming for around 3x your annual salary by 40, 6x by 50 and 8x by 60. The examples below show what those multiples look like at two different salary levels.

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These figures are useful for checking your progress, but they should not become a source of unnecessary pressure. Your retirement savings target depends on factors such as your income, lifestyle, retirement age, pension and investments. Use the multiples as a guide, then adjust your savings plan to reflect your own circumstances and the retirement you want.

Behind your retirement target? This can help you catch up

Falling below the retirement savings benchmark for your age does not mean you have missed your chance to build a comfortable retirement. What matters is what you do from this point forward, particularly if your income has increased and you now have more room to save than you did earlier in your career.

Several changes can help you close the gap over time:

• Increase your savings rate: Raising your retirement contribution by even a few percentage points can make a meaningful difference over several years, especially when your income increases.
• Put salary increases to work: Instead of allowing every pay rise to become additional spending, direct part of each increase towards retirement.
• Reduce investment fees: High fees can quietly erode the returns on your savings over the long term. Review your pension and investment accounts to understand what you are paying.
• Make the most of employer contributions: If your workplace offers a pension contribution or matching scheme, contribute enough to receive the full benefit where possible.
• Keep investing consistently: Avoid trying to make up lost ground through unnecessarily risky investments. Consistent contributions and a suitable long-term investment strategy can give your savings more time to grow.

If you are rebuilding, it can help to track it somewhere visible, you can set set money aside for long-term goals in a Pouch.

Protecting your retirement savings when you earn and live across currencies

Retirement savings can lose value in practical terms when the currency you save in weakens against the currency you expect to use later. This matters more for people who work across borders, receive income in different currencies or expect to retire in another country. Holding part of your long-term savings in a stable, widely used currency can provide some protection against these movements, although it does not remove currency risk entirely.

The key is to avoid putting all your retirement money into one currency simply because it feels safer today. Consider where your future expenses will be, which currencies you earn in and how often you may need to convert your savings.

For people who receive international income, Grey makes holding and spending multiple currencies simple. You can receive supported foreign currencies, hold balances and convert funds when needed, rather than converting every payment immediately into your local currency. This can give globally mobile savers more control over when they exchange money and how they manage their international finances.

Frequently asked questions

How much should I have saved by 30?

A commonly used retirement benchmark is to have around one times your annual salary saved by age 30. For someone earning $60,000, that would mean about $60,000. It is a guide rather than a strict requirement, particularly if you started saving later or had competing financial priorities.

Is it too late to start saving at 40?

Starting at 40 is not too late. You may have fewer years for your money to grow, but increasing your contribution rate and investing consistently can still build substantial retirement savings. Review your current position, set a realistic target and increase contributions when your income allows.

How much do I need to retire?

There is no single retirement savings figure that works for everyone. The amount you need depends on your expected spending, retirement age, income sources, healthcare costs and investment returns. Estimating your yearly retirement expenses can give you a clearer starting point for setting a personal savings target.

Should I save more if I am behind my retirement target?

If your savings are below the benchmark for your age, increasing your contribution rate can help close the gap. Consider directing part of each pay rise towards retirement, reducing unnecessary investment fees and taking full advantage of any employer pension contributions available to you.

Does my salary affect my retirement savings target?

Yes. Many retirement benchmarks are based on multiples of your annual salary, so a higher income produces a higher target. However, salary alone does not determine how much you need. Your spending habits, pension, investments, retirement age and expected lifestyle should also shape your personal goal.

Africa's creator economy is experiencing a remarkable surge. This growth is being driven by its youthful population and increased access to digital technologies. It’s projected to grow to $17.84 billion by 2030, with an annual growth rate of 28.5%.

However, monetization remains a significant challenge for African creators. To navigate these challenges, selecting the right international payment solution is crucial for African content creators aiming to efficiently receive payments from global clients.

Also read: How South African freelancers can receive payments from the US, UK & EU clients

Why African content creators need international payment solutions

• Global transactions: Many freelancers work with clients in the US, UK and Europe, thus requiring platforms that support multiple currencies and international payments.
• Lower fees: Traditional banks and some online platforms charge high withdrawal and conversion fees, significantly reducing earnings.
• Faster access to funds: Delays in processing payments can disrupt cash flow, making fast transactions essential.
• Reliable security: A trusted platform ensures freelancers receive payments securely without unnecessary account freezes.
• Secure transactions: Freelancers need reliable payment platforms that minimize the risk of account freezes and fraud.

Also read: How freelancers in Nigeria can receive payments from US, UK & EU clients

Top international payment solutions for African content creators

If you're looking for an efficient way to receive international payments, here are some of the best alternatives:

• Grey (Best for African content creators): Offers virtual USD, GBP, and EUR accounts to receive payments seamlessly, with low transaction fees and competitive exchange rates.
• Wise (formerly TransferWise): Ideal for freelancers needing multi-currency accounts.
• Chipper: A digital wallet that allows international transactions and remittances across African countries.
• Pesa: A digital cross-border financial service provider with fast international payments and low transaction costs

Also read: PayPal and Payoneer alternatives for freelancers in Asia: What to use instead

Why Grey is the best choice for African content creators

• Virtual multi-currency accounts: Receive USD, GBP, and EUR payments directly from international clients.
• Low fees: Keep more of your earnings with Grey’s transparent pricing.
• Fast transactions: Get paid in minutes, without long processing delays.
• Easy currency conversion: Convert funds at real-time rates without hidden fees.
• Seamless withdrawals: Transfer money to local African bank accounts effortlessly.

How African content creators can receive payments with Grey

1. Create a Grey account

Register on the Grey website or download the mobile app to get started.

2. Complete identity verification

This process involves submitting a valid ID, proof of address, and a selfie for security verification. Grey ensures a quick and seamless verification process.

Also read: Top reasons your KYC verification is failing and how to fix them

3. Request your foreign bank accounts

Once verified, navigate to the “Accounts” section to generate your US, UK, or EU bank account for receiving international payments. Your account details will be available instantly.

4. Link your account to freelancing platforms or share your details with clients

Once you’ve set up your foreign bank account, you can easily share your details with clients or add them to freelancing platforms to receive payments directly.

Also read: How virtual accounts are helping freelancers connect with the global market

For content creators in Africa, Grey is the best way to receive international payments quickly and affordably.
Create your Grey account today or download the app to enjoy inclusive global banking, designed to carry your dreams across borders.

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The post-COVID era has made many businesses and freelancers embrace remote work. Embracing this freedom has allowed people to work for companies and international clients from anywhere in the world. You could be a Mexican enjoying the layback life in Indonesia while working for a company based in the US.

The lingering concern, however, is how to handle foreign income taxes as a remote worker. Should you pay to the country you’re working from or to the country your company is located in? Should you pay the taxes to the country whose citizenship you hold?

If you are earning foreign income, this article addresses how to manage your taxes.

Read also: How non-US citizens can open a US bank account online.

Considerations for foreign income tax management

Handling foreign income taxes as a remote worker can be tricky, but here’s a general guide:

1. Understand your tax residency status

Your tax residency status determines where you're obligated to pay taxes. Some countries tax based on citizenship (e.g., the US), while others tax based on residency. Check the specific rules of your home country and the country you're working from. Tax residency in Europe depends on the country. Generally, you are considered a tax resident if you stay more than six months in a year (183 days). However, you will still be a tax resident in your country if you stay for less than six months in other countries.

2. Know the tax obligations of the country you're working from

You may need to pay income taxes in the country where you're physically present, even if your employer is based elsewhere. Research local tax laws, including income thresholds, filing requirements, and potential tax treaties with your home country.

Read also: Navigating forex regulations as a freelancer in Africa

3. Double taxation agreements (DTAs)

Some countries have DTAs to prevent you from being taxed on the same income by both countries. These treaties can offer relief through exemptions, reduced tax rates, or tax credits.

4. Consider foreign-earned income exclusions or tax credits

If you're a US citizen, for example, you might qualify for the Foreign Earned Income Exclusion (FEIE) or claim a foreign tax credit to offset taxes paid to another country. Many other countries offer similar reliefs.

Read also: How to manage international payments while living abroad

5. Maintain accurate records

Keep detailed records of your income, expenses, tax filings, and relevant documents. This is crucial to prove your income sources or claim deductions and credits. Use payment platforms like Grey to help you track your earnings.

6. Get professional advice

Tax laws can be complex and vary widely. Consulting a tax professional with expertise in international tax laws can save you time and money.

Read also: How freelancers in Europe can efficiently manage foreign currencies

7. Stay updated on changes

Tax regulations are evolving, especially those concerning remote work and digital nomads. Review your situation regularly to ensure compliance.

Managing your earnings with Grey

Many remote workers might be confused about where to pay their taxes as a remote worker. Most often, you are required to pay to the country where you are working from, especially if you have stayed for up to six months. It is, however, best to check out the taxation laws in your home country and your country of residence.

Managing your finances with Grey ensures you can accurately monitor your earnings and file your taxes accordingly. Send invoices to your international clients and easily receive payments in your multicurrency account. Grey also offers a versatile virtual USD card and favourable exchange rates. Ready to take control of your finances? Sign up with Grey today.

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