What Is The Gig Economy?
Many people have heard of the gig economy, but what exactly is it? The gig economy is an environment where temporary positions are the norm and organizations create contracts with independent workers for short-term work. This provides workers with more flexibility, exposure, and allows them to create a bigger portfolio. However, the gig economy doesn’t provide a predictable paycheck or employer-sponsored savings or health coverage. This means that workers are less likely to be saving. If you are considering joining the gig economy or already part of it, follow these three steps to save.
#1: Save Automatically 
Saving automatically is an easy and effective way to increase savings while working in the gig economy. Since most paychecks are directly deposited into one’s back account, employees should have some of their money transferred into a checking account and some of it put into a savings account. Workers will be increasing their savings, while less likely to spend it.
#2: Create An Emergency Fund
An emergency fund is a fund that does not have easy accessibility. It is important for workers who do not have a steady paycheck to have an emergency fund because the fund can help cover any unexpected or unavoidable expenses that may come up. An emergency fund can help you pay these unexpected expenses without going into debt. Learn more about emergency funds by clicking HERE.
#3: Open A Retirement Account
Just because you don’t have an employer-sponsored retirement account, doesn’t mean you still can’t save up for retirement. It is possible to still save for retirement with Individual Retirement Accounts (IRAs). The two types of IRAs are traditional IRAs and Roth IRAs. Both types have different rules and offer different tax benefits. It is important to choose the IRA that will best meet your individual needs.
The Family Credit Union
The gig economy provides many opportunities for employees. However, saving while being a part of it is extremely important. If you would like to learn more about ways to save or setting up an IRA, The Family Credit Union is here to help. Visit our website today to learn more about the different services we offer. We look forward to hearing from you.
