As Americans face the harsh realities of the COVID-19 pandemic, more and more people are turning to the gig economy for income. While most people think of delivery and ridesharing services as the only job opportunities on offer, there are plenty of other careers that are part of the gig economy. Freelancers, construction workers, web designers, and hourly workers in a variety of positions are also included in this category. If you are thinking about turning towards jobs in the gig economy to supplement your income, there are a few things you should know.
Crunch the Numbers
Unlike traditional employers, many companies that offer gig-based work leave a large amount of the administrative legwork up to the contractors or freelancers they hire. For example, an independent contractor will not have their taxes withheld on any paychecks. Calculating state and federal income taxes (and putting aside money to pay them) is left up to the employee. Things like healthcare and retirement plans are also typically left up to workers to figure out. Many freelancers and contractors who find success in the gig economy only do so after crunching the numbers on business expenses, taxes, and benefits to determine the true hourly rate they require to make ends meet.
Expand Your Network
Like most other jobs, positions that operate on a freelance basis typically require connections. Maintaining a diverse and expansive professional network is critical, as is ensuring client satisfaction. This is particularly true for freelancers or contractors who find their opportunities working with clients directly, rather than those who find fares and jobs through things like ridesharing apps. Maintaining excellent client relationships is essential for freelancers who want to make the most of any opportunities available.
Making the Gig Economy Work for You May Be Challenging
While many people utilize gig-based employment as a supplement for other income, plenty of professionals find success by freelancing full time. This typically requires long hours, dedication, and sharp business sense. Many freelancers treat their job as their own small business, and extensive knowledge of taxes, cost-benefit analyses, management techniques, and negotiation tactics are vital. Succeeding in the gig economy is achievable for many, but it takes hard work, luck, and financial proficiency.
Take Control of Your Finances with EveryIncome
EveryIncome is dedicated to providing our clients with career and finance management tools to help them create a stable financial future. Regardless of where you are in life, our system of tools and guided learning is tailored to fit your specific needs. Take control of your financial health today. Contact the team at EveryIncome online or give us a call at (571)370-5400. For more tips and tricks to foster financial wellness, follow EveryIncome on Facebook, Twitter, and LinkedIn.