Essential Financial Tips And Tricks For Freelancers And Gig Workers

April 25, 2022 | June Mckaig

 

Freelancing and gig work is nice if you can get it — and many do. There are about 57 million gig workers in the United States today, according to recent surveys. That’s a whopping 36% of all workers in America. Freelance jobs and gig work are perfect for those looking for extra income, are striving to meet specific financial goals, and have the time and energy.

A freelancer can write, edit, design, and lead social media efforts. Gig workers do everything from dog-walking and food delivery to teaching courses online. But freelancers and gig workers also must navigate sometimes choppy financial waters. Here are a few major financial tips and tricks to consider before freelancing or launching a side hustle.

Remember These Tips If You Are A Freelancer

Think About The Work You Actually Want To Do

Freelancing and gig work is extremely popular for a reason. Besides the extra cash, it’s appealing to work on your schedule and be able to focus on something you love doing, such as writing or creating art for sale. But before you jump in, carefully consider what you want to do, how often, and the pros and cons of each gig.

One of the best financial tips and tricks for freelancers and independent contractors is to think hard about how this gig will impact your life and relationships. Set your hours in a way where you won’t feel overwhelmed, make sure all the duties associated with the job will be things you like to do, and determine whether the pay is worth the time and energy.

Always Have A Contract You Understand

Getting a freelance or gig job should be treated as though you’re signing up for a full-time job. One of our top financial tips and tricks for freelancers is that, first and foremost, there should always be a contract that outlines your negotiated rate, the details of the project including its scope, any deadlines associated with the work, and both the frequency of payment and the method of reimbursement.

Stack Gigs — If It Works For You

Whether you have a full-time job or not, you may be able to stack side work effectively to maximize your earning potential. One possibility is keeping a full-time job, taking on a few side projects, and determining if you can also rent out a room or your home out on rental sites occasionally.

If your primary work doesn’t require a vehicle, consider renting that out as well. Many gig workers have reported being able to cover their monthly car payment in a little over a week by renting out their car when they don’t need it. And if you have a parking space you are not using, you can rent that out as well.

 

 

Understand How Taxes Work

Tax rules for gig workers and freelancers are different than what you’ve likely experienced with a full-time job. Typically, such side hustle work classifies you as an independent contractor and that comes with a new set of tax rules that you have to follow in order to properly do your taxes.

Usually, it means not using a W-2 form and paying taxes with each paycheck. Instead, you need to set aside a certain amount from each payment to pay taxes eventually. Many gig workers take out an amount each week or month and set it aside for tax time.

Always Keep A Savings Account

Don’t forget that one of the most essential financial tips and tricks also applies to freelancers. You have to keep and grow a savings account. Don’t rely on your gig work as a secure stream of income to help with your savings. Things happen and gigs go away. Or you may not be able to maintain your side hustle. If that happens, you’ll need a strong savings safety net.

A Vehicle Title Loan May Also Help Financially

Freelance and gig work is exciting and lucrative. But even if you land an extra job, it’s still hard to recover from a financial emergency. That’s where a vehicle title loan comes in. Vehicle title loans are designed as short-term loans to help with major temporary financial setbacks, such as emergency room bills or needed home repairs.

They are easy to qualify for and can provide the money you need quickly – if you are approved, of course. In as little as 30 minutes, you may qualify for a vehicle title loan of up to $15,000 at Fast Auto Loans, Inc. to help you out through your emergency expense by just using your vehicle!

To begin, just fill out the short title loan form on our homepage and a loan representative from the Arizona title loan location closest to you will give you a call. They will guide you through the rest of the title loan process and set up an appointment for you to either come in or have us meet you. If you are approved, you receive the loan cash you need the same day or the very next business day.

Make Freelancing Simple With These Tips

Don’t forget to follow these important financial tips and tricks if you begin freelancing. These tips can help you navigate your side hustle. And if you are having trouble coping with a financial emergency consider the option of a vehicle title loan. Start online, give us a call, or visit us today to learn more about how a title loan can help.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.