You’re probably one of the half of Americans who are predicted to join the gig economy in the next five years! But before you jump right in, remember that the “gig lifestyle” might have just as many drawbacks as advantages. So how can you profit from these opportunities and make a decent living while avoiding the dangers that come with this new wave economy? For some crucial advice, continue reading.
Be Astute in Your Gig Search
Not every gig spot is made equally. Scams and opportunities await on the Internet too, so you must develop an understanding that will help you avoid unfair deals and difficult customers. You can minimize time looking for jobs by focusing on your time working if you can find great customers earlier on. If you want to find gigs in the gig economy and have something to offer that customers will need (like writing, designing websites, and video-making), you can check the job boards for work that needs your skills. Of course, each job site has its own pros and cons too. For example, Upwork is great for beginners who need practice. There is always a wide range of employment options, and earning money is simple.
With a lot of price undercutting and no filter to pick out scam projects, it can be competitive. Conversely, Toptal is ideal for highly qualified independent contractors who prefer not to look for clients. Because Toptal only displays projects that are related to your talents, finding jobs is simple, and you don’t have to worry about scammers because clients are thoroughly screened. The pay cycle can take several weeks, and the application process is quite selective.
Try using gig apps on your phone, such as Uber (driving), TaskRabbit (handyman jobs), Dolly (moving and hauling), and GrubHub (food delivery), if you’re more interested in completing any odd jobs that are required.
These applications are convenient and simple to use. Each app will have different application procedures, but once you have an account, you may sign in whenever you’d like to work to get on-demand jobs. The apps will automatically connect you with gigs in your area.
Don’t Work Without a Contract
According to a 2015 poll by the Freelancer’s Union, only 28% of gig economy freelancers have formal contracts. According to this survey, “34% of freelancers were not paid anything, and 81% of freelancers were paid late. Further, 50% of freelancers frequently encountered issues regarding payments.”
In exchange for protecting you in the event that there is an issue regarding the payment, the basic function of the contract is to clarify specifically what each party can expect of the other so that the project itself does not grow outside the parameters that were initially discussed, the price does not change, and the timeline does not become ambiguous.
For the basic information that each party needs to include in the contract regarding what the project entails and what each party can expect of the other, the basic information has to include the parties themselves, an explanation of the project itself and the work that will be required, and the price for the project itself. Before the contract has been negotiated and signed, never start any work.
Establish Clear Time Blocks for Work and Play
Although you don’t have to work during traditional office hours in the gig economy, it’s advisable to set a routine for yourself to follow so that you don’t overwork or overplay. If you want to avoid burnout, ensure that you give yourself adequate time to do your gigs as well as some undivided attention to your free time. Ensure that your work schedule allows you to meet your financial goals.
This week, how many gigs do you have to do to make the money at the end of the month? What kind of money do you make at the end of the month? How many gigs are there to be completed in a week to reach the goal? To avoid running out of money at the end of the month, how can weekly gig targets be established? Remote team time management like Controlio is about coordinating schedules, priorities, and communication across locations so everyone stays productive without burning out.
Begin by monitoring the current employment statistics so as to gain a deeper insight into the amount of time that will be needed. The amount of time utilized for specific tasks will be noted and then accumulated based on projects done or types of tasks. Both the billable time and non-billable time need to be considered within the plan. Some time-tracking apps are Controlio, Toggl, Tracking Time, Hours. The productivity index is a metric used to measure how efficiently individuals or teams convert time and resources into meaningful output.
Establish a System to Monitor Your Earnings and Payments
This is especially the case if working with a number of different clients or gig types. You need to ensure that you have a very well-thought-out system in place for the creation of invoices and the payment processing. While utilizing an Excel spreadsheet or a payment system such as Paypal or Wave, you need to ensure that all the money being made can be accounted for as more young Americans are trying to get by on a very meager wage.
As a freelancer, you’ll also need to budget for your erratic revenue and anticipate that some clients will (likely) be late with their payments. Create a budget to help you deal with erratic income flow. Then, work backward from your anticipated monthly expenses to determine how much you must earn from jobs to cover those expenses.
Make space for anticipated taxes and savings; the objective is to accumulate at least six months’ worth of savings. Jobs come and go, and despite your best efforts, you can occasionally have a few slow months. Maintaining a low debt-to-income ratio and getting through those times when you don’t have a lot of work will depend on having an emergency fund. You must have a well-organized system in place for generating invoices, establishing due dates, and collecting payments, regardless of whether you’re using an Excel spreadsheet or an invoicing service like Paypal, Wave, or FreshBooks.