There are 70.4 million gig workers in the US as of 2022, amounting to 36% of the workforce. Demands have changed over the past few decades, with ubiquitous connectivity and other technological advances enabling workers to fulfill their duties from practically anywhere in the world—including the safety of their homes. Freedom, independence, and the ability to choose one’s working hours all appeal. However, gig workers are well aware that the downside of this mode of work includes the need to pay for one’s own healthcare, and the absence of paid leave, sick leave, or work injury insurance. If you are a freelance worker, and you wish to continue to be your own boss while securing your future, what strategies should be put in motion?
Calculate Your Monthly Expenses
Many freelance jobs have high and low seasons, so it is important to calculate your total monthly expenditure, so you can ensure that even on quieter months, you make more than this amount. If some months are inadvertently quiet, then you need to ensure that your peak earnings are enough to cover dryer months, while still enabling you to set aside money for your savings and unexpected needs.
Know the Law
If you are a disabled freelance worker, your disability benefits will undoubtedly help you make it through quieter seasons at work. Disabled gig workers retain disability rights, but there are key rules you should be aware of. For instance, if you work too many hours, or you earn more than a certain amount, your benefits could be revoked. To weed out any potential problems, invest in the advice of a good lawyer, who can explain the ins and outs of the system. If you are currently working, but you think you may need to apply for benefits down the road, be aware that to qualify for Social Security Disability Insurance, you need to have worked five out of the last ten years. You will also need to have paid taxes during this time frame.
Have An Emergency Fund
To be ready for unexpected setbacks, set up an emergency fund. As a rule, around 45% of your earnings should go to savings, and 10% to your emergency fund. Extra earnings can go to wants such as entertainment, dining out, clothes shopping, and similar. Even if you are just starting out, and you cannot afford to set aside such a high percentage, get used to saving a specific amount every month and give yourself a specific amount of time to increase these percentages. Develop a strategy to make your goal a real possibility that won’t necessarily tilt your work-life balance excessively.
For those who value being their own boss and dancing to their own rhythm, the gig economy can be a good fit. Of course, freelance workers lose out on paid sick leave and other benefits that employees can have. To secure your future, build a healthy savings nest and emergency fund. You should also consider seeing a lawyer if you have a disability, to make sure that your earnings and hours remain within stipulated limits.