Freelance jobs, side hustles, and gig economy workers often share similar financial struggles in terms of maintaining a steady paycheck. Exploring the unique financial pros and cons of these types of jobs may help you decide whether this is the right lifestyle for you. There are also several financial and legal tips that might be able to make this lifestyle more manageable. Consider contacting a Tullahoma bankruptcy lawyer to explore your financial options.
Pros and Cons of Side Hustles
Examining the pros and cons of gig economy jobs may help you decide whether this line of work is right for you. Many people are drawn to freelance, gig economy, and side hustle jobs for a reason. These are some of the rare jobs that offer greater flexibility of hours, creative freedom, and a wider variety of job tasks.
In most cases, you are your own boss unless you are working under someone else. Even when working under someone else, most freelance work offers more freedom in choosing your hours and how you accomplish the work. Depending on the type of work, some people may never have to leave their homes and can work fully remotely.
The cons of gig economy jobs revolve around less stability and structure. Health insurance and disability benefits are not often included and workers’ compensation is usually not an option. You may have to take taxes out of your paycheck yourself. Since you are often your own boss, you will have to keep up with maintaining future gigs to keep the paychecks coming.
Side Hustle and Gig Economy Worker Tips
When it comes to side hustle and gig economy worker tips, the most important step is to make sure you choose the right type of work for you. Common freelance job tips talk about the importance of choosing something you are not only skilled at but passionate about. Without passion, continuing to find future gigs may become increasingly difficult and stressful.
Your passion and talent will help you build a portfolio to show future paying clients. An adequate portfolio is essential for showcasing the services you have to offer. However, do not forget the legal side. Include disclaimers about anything that could be against you like outlining the risks and benefits of your services, payment details, and refund rules.
Common freelance financial tips include budgeting each month to track freelance work expenses, income, and monthly bills. You can use this to help you build an emergency fund not only for unexpected expenses but also as a financial cushion if you run low on freelance work. Consider investing in your own insurance and retirement plans. Do not forget to file taxes because this could lead to financial problems later.