Gig economy seems like the new buzz word, and it encompasses everyone from freelance writers to independent contractors and truck drivers for hire. Anyone who is not fully employed is considered part of the gig economy. Surprisingly, research suggests that a big part of the gig economy is composed of individuals who chose to leave full-time employment in favor of doing what they love.
If you are a member of the gig economy, you should not forget the following:
The one gray area when it comes to the gig economy is the filing of taxes. Some recommend freelancers to write themselves off as the owner of their own business to take out their expenses against the tax they need to pay, but things are different when you’re providing your services as a truck driver.
Tax services for truckers can come in handy in this situation, as they have a template of tax deductibles for the specific job. Make the task of looking for an accountant one of the first things you do after you decide to be part of the gig economy.
Healthcare is one of the most important benefits of being a full-time employee. With the soaring price of health coverage, many freelancers consider this optional, which may result in high hospital bills at the worst time. The last thing you want is for all your hard-earned money to go to paying for hospital bills, so start looking for healthcare options you can pay with the average salary you get from your gigs.
The gig economy may be thriving right now and you can get a good payout for something you enjoy doing, but what happens after a few years? Things remain uncertain, so you should prepare your finances for tough times. Setting aside a portion of your income for emergency situations is a wise move. Both employed and freelancing individuals should make this a habit.
More people are seeing the advantages of the gig economy. It offers flexibility and an unlimited earning potential. But don’t forget these important things just yet.