A study by Invoice2go found that more Americans are embracing the side-gig economy and entrepreneurship.
- More than 94% of side-giggers wouldn’t stop their side job to focus solely on traditional nine-to-five employment if they had the opportunity.
- In fact, nearly half (47%) of side-giggers say they are building up their side-gig until it’s stable enough to become their main source of income.
- By comparison, only 4.67% of side-giggers say it’s only temporary.
- Side-giggers are also optimistic, with more than half (54%) believing they can earn more through side-gigs than traditional nine-to-five employment.
“Entrepreneurship comes in all shapes and sizes, and the rise of the ‘gig economy’ is a perfect example of how small-scale entrepreneurship can be,” say researchers at Invoice2go. “As more and more of us choose to live a more flexible life, to call our own shots, or pursue a passion, it’s becoming increasingly common for people to make a living working gigs, rather than traditional nine-to-five jobs,” they add.
Whether you’re side-gigging or a full-fledged entrepreneur, keep the following tips in mind:
- Always have an emergency fund: Chances are, your income will be unsteady. You may have to tap into your ‘rainy day’ fund to cover basic expenses like housing, utilities, and food. Many financial planners recommend that we all have at least enough in emergency savings to cover three months of expenses. Entrepreneurs may need to sock away a little more, as downturns in the economy and unexpected expenses may tap into their ability to make income from their businesses.
- Separate business and personal expenses: Keeping your personal and business expenses separate can help you stay organized for accounting and tax purposes. However, keeping your personal finances separate can protect you from being liable for some of the other financial elements.
- Save for retirement: One of my favorite motivators when it comes to taking retirement planning seriously is to literally look at an older version of myself with Merrill Edge’s Face Retirement app. It reminds you that there is someone out there that you will have to create financial security for in future years— you. This can be particularly helpful for entrepreneurs who have to be very disciplined about retirement savings while trying to nurture their companies. SEP IRAs, individual 401k plans, and even defined benefit plans are options entrepreneurs should consider.
Also, give your finances a helping hand and seek out professional advice to make sure you have the financial foundation needed to make sure you can live out your vision.