The Shift Away from Nine-to-Five Employment

Even if you’ve never heard of the “gig economy,” you probably leave your home to go to work every day. A gig economy refers to the recent employment phenomenon of freelance/independent contractor work that encompasses short-term and long-term projects. It’s generating a lot of buzz because it’s estimated to comprise roughly a third of the workforce and is expected to grow to 43 percent by 2020.

One of the biggest benefits of this arrangement is being able to work from home — or anywhere, for that matter. That makes it an appealing option for:

• Millennials looking for an alternative lifestyle
• Parents, both single and attached
• Seniors, especially those stymied by the current job market
• Caretakers with lots of downtime
• Any of the 85 percent of people polled who admit hating their jobs … and their bosses

While working as an independent contractor may sound like a dream scenario, there are pros and cons to the arrangement. But if freedom and flexibility are your goals, then it may pay to educate yourself about what it truly means to work independently.

Establish a Budget Before You Start

Before diving into a gig economy lifestyle, you’ve got to figure out how much work you need to take on so you can handle your expenses — from bills and obligations to recreational funds. Keep in mind that the workload is often feast or famine, so it can be difficult to accurately predict your income. Because of this, you may want to begin with an emergency fund that’s enough to cover three to six months of your financial obligations.

Make sure you establish a budget — get yourself a good software program to help you stay organized. Your budget should include all your expenses and the applicable information of all of your current “gigs” or freelance projects. When you work for yourself, you must keep clear records.

Save yourself a headache at the end of the year (or each quarter) by setting aside money for taxes each month since they’re not withheld when you’re an independent contractor. Also keep in mind that you don’t get paid vacations or sick days, so you’re going to need a reserve to manage time off.

Choosing Work in the New Economy

There are two routes you can take to enter the gig economy:

1. Doing something you know, like what you did in a previous full-time job
2. Doing something you love, like a passionate hobby in which you’ve developed some expertise over the years

If you’re lucky, your passion meets your proficiency. For example, if you love animals, but worked in business marketing, consider becoming a pet blogger or freelance writer covering animal issues. Even if you’re taking a salary cut at the beginning, you’ll be motivated to work harder when you need to because you’ll be doing something you enjoy.

You could also consider jumping on a gig economy job app to work for a popular ride-sharing, meal-delivery or errand service. Some of the more lucrative and more technical gigs that are in demand are in the areas of:

• Blockchain jobs
• Robotics
• Penetration testing web services
• Virtual reality
• Instagram marketing
• Video editing services
• Writing and copywriting — you could even work for Ray Access

Finding Work in the Gig Economy

Looking for new work needs to be a weekly habit since the rug can be pulled out from under you at any moment. There are many resources available online. Make it easier on yourself by setting alerts to receive job notifications pertaining to your skillset and interest, but don’t back yourself into a corner. If there’s a particular company you’d like to work for, reach out to let them know you’re interested in any potential remote-working opportunities that may arise.

While the independent workforce continues to grow, there’s still work to be done to protect contractors — in terms of physical and mental health. Last year, U.S. legislators proposed a bill that would provide gig economy workers with “portable benefits” that they can take with them from job to job. Until then, make sure you understand what you’re walking into when considering a career change.

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Guest blogger Lucy Reed has been starting businesses since she was a kid, from the lemonade stand she opened in her parent’s driveway at age 10 to the dog walking business she started while in college. She created GigMine (gigmine.co) because she was inspired by the growth of the sharing economy and wanted to make it easier for entrepreneurial individuals like herself to find the gig opportunities in their areas.