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Navigating the Gig Economy

Managing your money in the gig economy.

In recent years, the gig economy has changed the way people work and earn a living. Defined by Investopedia as “a labor market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers,” the gig economy can offer freedom and flexibility to workers. However, with this freedom also comes a set of challenges.

In this article, we'll explore how to navigate the intricacies of this work environment as well as tips for managing your personal finances as a gig worker.

The rise of the gig economy

As mentioned before, this type of work has surged in popularity and reshaped the traditional employment structure. This shift was driven by technological advancements, changing consumer preferences, and the desire for work-life balance. Gig workers, also known as independent contractors, freelancers, or solopreneurs, now make up a significant portion of the global workforce.

What are the benefits?

There are quite a few benefits to working and participating in the gig economy, including:

  • Flexibility: Perhaps the most appealing aspects is the ability to dictate your own schedule, allowing you to balance your social and personal commitments, pursue multiple projects simultaneously, and adapt to any unexpected life changes.
  • Diverse opportunities: The gig economy spans various industries, from writing and design to ride-sharing and food delivery, which enables workers to explore and capitalize on their unique skills and passions.
  • Skill enhancement: Gig workers often engage in diverse projects, which fosters continuous skill development and adaptability.
What are the challenges?
On the other hand, there are also some challenges you may run into when it comes to having a side hustle, including:
  • Income stability: Gig work can be inconsistent and lead to a fluctuating income. To cover those down periods, it’s important to establish a financial safety net.
  • Benefits and protections: Unlike traditional employees, gig workers typically don't receive benefits such as health insurance, retirement plans, or paid time off.
  • Self-motivation: Working independently requires strong self-discipline and motivation. Setting clear goals and routines can help maintain productivity and prevent burnout.

Managing your money as a gig worker

No matter the benefits or challenges you may face in the gig economy, it’s important to come up with a plan on how to manage your money. Here are a few Clearview tools and tips to help you make the most of your money as a gig worker:

  • Sometimes you need a one-stop shop to help you visualize your full financial picture. Our free budgeting tool, Money Management, can do just that! Track your spending, manage your budgets, set financial goals, view your accounts, all in one place.
  • The potential of income instability means that having a stash of cash on standby for when the unexpected occurs is crucial. Creating an emergency fund can help you cover those unforeseen costs.
  • If you’re a full-time employee and working on a side hustle, we know that your time is limited. Take the guesswork out of banking and explore our Digital Academy full of interactive tutorials that feature our various digital banking services available to you.
  • Be sure to keep track of your finances so you’re well prepared for tax season! Here are some tips for managing your taxes as a gig worker. If you need assistance, you can always consult a tax professional for guidance and expertise.

Navigating the gig economy requires a blend of adaptability and careful planning, especially when it comes to your personal finances. If you're a current gig worker or thinking about starting your journey, make sure you're aware of the potential challenges and how to overcome them so you can thrive in this dynamic work environment. You've got this!

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