Prepare for your financial future if you work in the gig economy
- November 20, 2017
- Posted by: Seedofpro
- Category: Corporate Wellness, Finance & accounting, Innovation
With so many different people performing gig work, there is no one-size-fits-all solution.
From a baby boomer who moved into self-employment after a career of full-time work, to a gen-Xer who is pursuing a dream of using professional skills independently, or perhaps a millennial who is building a career foundation while trying to make rent and pay down student debt
Each individual needs a different approach to ensuring their financial wellness, and here’s how they can do it:
Ready? Set? Let’s secure our future…
Step 1)Create a livable, sensible household budget and stick to it.
Step 2) Build an emergency fund. It’s not the most fun step, but can be the most important. Save a set amount or a percentage of each paycheck for an emergency like a car/home repair or a health care bill. This is especially important for gig workers who rely on sometimes sporadic income streams and often don’t have the same protections as the full-time workforce.
Step 3) Create your own long-term safety net. Gig workers can set up Individual Retirement Accounts, buy individual health care coverage and tap into benefits offered by professional associations.
Step 4) Plan for the future: consult a financial professional. Given the challenges in creating a budget and planning how much to save, perhaps the best place to get help is from a pro. We trust experts to fix our houses and cut our hair, why wouldn’t we get advice on budget-making and budget-following from one?
While the traditional workforce probably won’t be surpassed by gig workers in the next few years – full-timers offer employers consistency and loyalty – the advantages of the gig economy mean that it is unlikely to disappear. Helping individuals learn how to own their personal financial wellness can help prevent today’s trend from becoming tomorrow’s crisis.
- Growth through innovation/creativity:
Rather than be constrained by ideas for new products, services and new markets coming from just a few people, a Thinking Corporation can tap into the employees.
- Increased profits:
The corporation will experience an increase in profits due to savings in operating costs as well as sales from new products, services and ventures.
- Higher business values:
The link between profits and business value means that the moment a corporation creates a new sustainable level of profit, the business value is adjusted accordingly.
- Lower staff turnover:
This, combined with the culture that must exist for innovation and creativity to flourish, means that new employees will be attracted to the organization.