How to Separate Business & Personal Finances

One of the smartest (and simplest) moves a freelancer can make is to separate business and personal money. Why?

• Cleaner bookkeeping: No more sorting out “Was this lunch for me, or a client meeting?”

• Tax savings: Deductions are easier to track and defend if audited.

• Professionalism: Clients take you more seriously when you run finances like a business.

Start by opening a dedicated business checking account and funneling all client payments there. Then, transfer money to your personal account as your “paycheck.”

This small step sets the foundation for real financial stability—and makes everything else (budgeting, taxes, retirement planning) much smoother.