![]() ![]() Fixed expenses are expenses that will not change from month to month, such as housing, transportation, and student loan payments. If it helps, you can break them down into two types of expenses: fixed and discretionary. Your first step should be to determine your monthly expenses. Come up with a budget…and stick to itīecause your income flow fluctuates, you’ll need to come up with a budget a bit differently than someone with a regular income. Make sure that you maintain a good history by avoiding late payments on existing loans and paying off your credit card balances whenever possible. That’s why it’s important for contingent workers to have access to credit to help them get through leaner times. Make sure you maintain good creditĮven a robust cash reserve might not be able to weather a significant downturn in contingency work. ![]() A good strategy is to make it a habit to deposit a portion of your income in your cash reserve. You’ll want to set aside enough money to cover unexpected expenses and large bills that may come due during slower months between jobs. While establishing a cash reserve is an integral part of any financial strategy, it is especially important for contingent workers. The following are some tips for managing your money in a gig economy. In addition, you’ll have to plan ahead for health-care costs, taxes, and saving for retirement, since you will have to shoulder these expenses on your own. If you are a contingent worker, you need to pay close attention to your finances in order to make up for any gaps in earnings that may occur between jobs. According to the Bureau of Labor Statistics, 16.5 million people rely on contingent or alternative work arrangements for their income.1 Often referred to as the “gig economy,” these nontraditional or contingent work arrangements include independent contractors, on-call and temp agency workers, and those who sign up for on-demand labor through smartphone apps. ![]()
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