Now after the UK has started the Brexit process, we online workers need to take a look at how we get paid and how we look after the money that we earn online. I am sure that we all agree that the next few years might be a real rollercoaster ride for a lot of people financially. Looking after both savings and earnings will be a top priority.
First of all, there is a lot of rumours that Paypal is going to turn itself into an international bank. Many of you out there may already have a debit card from Paypal. I think that Paypal debit cards are great and I must admit that I have one. You have all of the guarantess of Paypal, and it can still be used as a debit card in the "real world". On a recent visit to the United States, I was amazed at the amount of Americans who had Paypal debit cards. If you work online, it is one of the options you should consider. Speaking to people in United States, it is clear that they were expecting Paypal to become a bank under the new directors of the company.
Most people who work online are paid in US dollars. The question is, should you keep your money in US dollars or convert it. As the currency markets look to be very volatile over the next few years, it might be a good idea to keep your funds in US dollars. Lots of banks do offer US dollars accounts and other currency accounts. For ex-pats, one of the best banks is HSBC, but you do have to be prepared to keep a rather too substantial amount of in your current account. If you are considering opening an off-shore bank account, it could be a good idea to speak to a financial adviser.
Savings are important as well. Once again, it depends on your personal circumstances. You can hold your savings in all sorts of ways these days, but unless you have a substantial amount to invest, it is best to hold them in a currency. There are still ways to avoid paying tax on your savings. Many people who make their living online have started offshore companies, and bill their clients from those. It is a lot easier and common practice for most people working in cyberspace. Do remember to speak to a professional. If you are not confident, or do not feel confident in the person giving you advice, walk away. It is really important to have confidence in your financial adviser. After all, you are likely to be working together for a long time.
Pensions are important for online workers as well. You may not be able to work online for the rest of your life, and that residual income, may not be there one day. There are a lot of good pension schemes out there for online workers or the self employed. Have a look at those and see if they suit you. You may even be able to transfer in other pensions or savings.
The world economy will be a challenge for all of us after the Brexit. I am sure that we will manage, but it might be better to seek some professional financial advice sooner rather than later.