The ‘Gig Economy’ has been a bit of a buzz word in recent years.
More than ever, younger generations are beginning to relinquish jobs with traditional working hours and move into an industry where, although the job security may be dubious, could offer them huge returns above a salary they’d otherwise be earning in a full-time position. However, the Gig Economy is notoriously fickle, so what should people be wary of before joining?
Invest in IT support
If you start a business that relies heavily on technology or are creating a business with your friend, you will want to have reliable equipment that lasts. Every company will face IT problems of some description in the future, and it’s wise to invest in a support service to help you out in the event of a major hiccup. Using a support provider that specialises in small companies, such as Custard Technical Services, is just one way to do this.
Create a pension pot
Most employers will have a pension scheme that they will encourage you to join as you become permanently enrolled. You won’t get to enjoy such benefits as someone who is self-employed; apart from the State Pension, and it is strongly recommended that you don’t rely on it. Finding a savings account that will offer you a decent interest rate over a long period of time will help supplement a business pension account. Using limited savings accounts such as ISAs and notice savings accounts often have far better interest rates as they’re much harder to access. In fact, not being able to access it will give you good incentives to leave your pension pot well alone, and use a separate one for a rainy day.
Don’t leave your taxes to the last minute
It’s understandable to loathe sorting your finances. Coming to terms with the finer points of HMRC can feel like a huge drain on time and your brain, but it’s completely worth your devotion. Understanding how to file a tax return and when you must do this by will prevent any fines and financial headaches in the future.
Save a back-up fund
You may have heard people saying the being self-employed is a test on your nerves as there’s no guarantee of work. Sometimes you will need to sign that odd contract which may bind you into a set period of work, but your long-term workload is completely variable. Saving up a pot of money that will cover your living expenses during any dry spells is a wise precaution to take.
Give yourself time
During your nine-to-five job, you may have fantasised about your potential high-earnings on your new hourly rate and your time spent abroad on your flexible holiday allowance. However, it might not be so successful for the first year or so – and that is completely normal. Give yourself plenty of time to become established and get to where you want to be. Joining the Gig Economy is stressful enough without placing enormous amounts of pressure on your initial success. The Gig Economy certainly seems to be the millennial’s choice of work-life balance. However, working by yourself does require plenty of organisation – and not just with your workload. Becoming financially and technology-savvy will benefit not just your personal career, but also your future financial integrity.
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