Being a sugar baby is a great way to get the finer things in life without actually having to hold down a 9-5 job. Once you negotiate your remuneration, the next step is actually setting up a payment schedule and method for your earnings.
The allowance that comes from being a sugar baby is much different than income from a regular job or even one-time cash payments you may have received as a gift. Depending on your specific agreement and your preferences, you may be getting a mixture of cash and other items to cover your rate.
How Do You Get Paid As A Sugar Baby?
Regardless of the amount, it is important to have a clear payment method set up to prevent confusion later down the line. It is also important because you will eventually need to pay taxes on your earnings, so maintaining a regular payment method will also generate receipts that you will need for tax purposes.
We have put together an easy-to-understand guide on managing your sugar baby payments so that you can spend more time enjoying life instead of managing your finances.
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What Is A Sugar Baby Allowance?
Being a sugar baby is a great way to have fun, see the world, and give someone companionship with no strings attached. They benefit from your attention, and you will benefit by getting gifts, trips, or even cash payments.
Most people who come to an agreement with their benefactor will either accept weekly payments or even per visit payments depending on the financial ability of the sugar daddy.
Some of the top-tier sugar babies are able to generate an income of $5,000 or more per month. The allowance allows the sugar baby to live a general life of ease for simply providing companionship. This allowance can be used to pay bills, invest, or simply to splurge. There is no limit to what a sugar baby can do with a generous and regular allowance for his or her services.
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Direct Bank Deposit
For those who prefer to avoid keeping cash on hand or who just want to conduct their payments securely, bank deposits are a great option. Your sugar dad can make a deposit into your bank account directly, or he can schedule automatic transfers which cover the amount of your allowance for specific set intervals.
This is not only secure, it is a great way to keep track of your income over the long haul. You are able to set your own rates, but make sure that if your sugar daddy deposits more than $9,999 into your account that you report it to the IRS for tax purposes.
If you have a trusting relationship with your sugar daddy, opening a joint account in which he can make regular transfers is also a viable option.
Cold Hard Cash
There is something alluring about cold hard cash at your fingertips. If you are not looking to leave behind any evidence of your payments, or if you just prefer to keep your money at home, cash is one of the best options for your sugar baby payments.
It is important to note that if you play to make an account of your income, then you won’t be able to count cash over a certain amount unless your sugar daddy issues you invoice or receipt along with the payment.
PayPal Sugar Payments or P2P Payments
PayPal has been a favorite among sugar babies and side chicks alike. You have the option of requesting payments, sending invoices, or even using a handle to accept sugar allowances. One of the great things about this option is that you can keep your personal information to yourself.
If you plan to pay taxes on your allowance, this is a good way to keep track. It is also worth noting that PayPal will automatically send a Form 1099-K to you once you have earned $20,000 or 200 payments in a year. If you are not a fan of PayPal, there are other options such as Venmo, Google Wallet, Skrill, and SquareCash.
Sugar Bill Payments
If you feel like taking cash is a bit too close to prostitution, then you can also choose to have your bills paid instead. Instead of having your sugar daddy give you money directly, instead, have them take care of your tuition, rental payments, insurance, or any other bills that you have piling up.
This will free up your own money to allow you to do the things you want while also creating a set schedule for your sugar baby payments. One downside is that you may have to give up some of your personal information if you want your sugar daddy to pay bills on your behalf.
Sugar Payments Via Pre-Paid Cards
Pre-paid cards are safe and also untraceable. Your sugar payments can be reloaded with easy, and you can use the card to pay for anything you like. Consider withdrawing the money to make a deposit in your regular account, or you can use the card to pay for bills, food, shopping, or even your tuition.
Another advantage of using a pre-paid card is that if you lose it, it can be replaced without losing the money on the card itself. For those who don’t have a bank account or simply prefer to keep things as anonymous as possible, this is a great option.
How To Avoid Sugar Baby Payment Scams?
Anytime there is money involved there is also a potential for payment scams. With sugar daddy and sugar mommy sites popping up all over the internet, the rise in payment scams has left many sugar babies miserable and out of cash. Knowing what types of scams are out there is the best way to avoid becoming a victim.
We are going to cover some of the common scams that are targeted towards those who are looking to start out as sugar babies or those who have already experienced companions.
Inheritance & Lottery Payment Scams
One of the most common sugar daddy/mommy payment scams is put in motion by older people who have a fluid income or by those who want companions but don’t have the funds to pay very well. These folks may be looking for companionship and use systems already in place to target their victims. The fake sugar daddy will go on a few lavish dates and even make a couple of allowance payments. They will then lead their sugar baby to believe they are coming into a large sum of money, such as via lottery winnings or through a will from a deceased family member.
Once the trap is set, they will ask for some of their payments to be returned until it comes in, however, once they get the money from the sugar baby, they will terminate the relationship or ghost them completely. The way to avoid this type of payment scam is to make a personal policy of never returning any portion of the sugar baby allowance once services or time has been provided.
P2P Payment Scams
Dealing with cash or bank deposits is the best way to avoid getting scammed, but we understand P2P platforms are an easy way to move money. These platforms are also rife with people looking to scam sugar babies out of their time and their money. Scammers will create fake profiles and then look for people interested in becoming sugar babies. They may send messages soliciting their services or even offering to pay their bills in exchange for their companionship.
Once the bait is taken, the scammer will ask the sugar baby to send them a small amount in advance from their P2P account as proof of account ownership, or just as a test of loyalty. Of course, once the money is sent the sugar baby will never hear from the scammer again.
These types of payment scams are easier to catch, but you would be surprised at how often they still work. Always remember that as a sugar baby you should not be sending money for any reason, especially not in order to claim payment for your time.
Temporary Payment Scams
This type of payment scam is hard to spot in advance and generally impossible to guard against unless you switch to a cash-only method of payment for your allowance. A sugar daddy or sugar mommy will make a payment to the sugar baby via a credit card or even through a payment app like Venmo, cash app, or PayPal.
The payment will actually show up in the sugar babies account, but after taking the service the scammer will then report the transaction as fraudulent or even claim the card was stolen. This results in a payment reversal which leaves the sugar baby without their earned fees despite having rendered their service. In some cases, a sugar daddy may even use a stolen credit card to make payments which can lead to a chain of reversals long after the payments have been made.
The best way to avoid this scam is to stick to prepaid gift cards, cash, or direct bank transfers.