We know all about the challenges of freelance life, believe us. We know it’s not always easy to do as an independent contractor, side hustler, gig worker, whatever you want to call it.
For one, you have to come up with all of this additional funding Stuff, and it’s a tricky thing. If you are working for yourself, it is up to you to put money aside for taxes. And ideally, you should keep track of your work-related expenses so that you can pay less tax. But come on, how many of us are really that great at doing this consistently?
Good news: we found a cool online checking account that you can use to get all of these things done. Lili is a mobile banking service designed exclusively for freelancers like you. The app, available for iOS or Android, is tailored to your specific needs.
Lili is completely free and her digital tools help you save taxes, take payments from customers and keep track of your expenses – all on the same account.
Swipe left or right to sort your expenses
The account comes with its own Visa debit card. Whenever you spend money from the account, you will receive a push notification asking you to swipe left or right to instantly categorize the spending as “personal” or “business”.
That way, at tax time, you can fully maximize your expenses and reduce your taxable income, thereby lowering your tax bill.
Seriously, it’s so much easier this way!
Speaking of taxes: Lili will help you calculate your income and estimate what income taxes you will have to pay. And every time you get paid, you can have Lili automatically defer a certain percentage for taxes.
Basically, Lili makes it easy to automate everything so you never have to worry about it again.
More tools in Lili’s toolbox
We freelancers need all the help we can get, you see? Fortunately, Lili has even more tools in her toolbox for us.
ATMs: You can withdraw cash with your debit card at nearly 40,000 MoneyPass ATMs across the country. You have free access to these. ATMs outside the network are charged a fee of $ 2.50 in the US or $ 5 abroad.
No overdraft fees: In contrast to practically all stationary banks, Lili does not charge any overdraft fees.
Get paid quickly: If clients and customers pay you by direct deposit, they’ll have access to those funds within two business days – which is faster than most banks.
Mobile check deposit: Depositing a check is very easy via the app. Simply sign the check, then write “only for Lili mobile payment” on the back, photograph the front and back and enter the amount in the app. Done.
Cash deposit: If you need to make a cash deposit, you can do so at any of the 90,000 Green Dot locations like Walmart, Walgreens or 7-Eleven.
Expense reports: Lili generates these automatically every quarter so you can pay your taxes and add up your deductibles.
Insights: Lili presents insights in a visual format to help you keep track of your personal and business finances.
Emergency Fund: The past year has taught us the hard way that everyone should have one of these. You never know when you will lose a good freelance performance or face some other disaster. With Lili you can automatically put something aside every month to build up your emergency fund.
Three final thoughts:
- The money in your Lili account is FDIC insured up to USD 250,000.
- There is no minimum account balance so don’t worry.
- It only takes a few minutes to sign up on iOS or Android and it makes your life as a freelancer so much easier – and saves a lot of taxes.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He’s also a freelance writer on the side and knows the pain of freelance taxes.