Three Tips for Working in the Gig Economy, by Jenna Sherman

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For many workers, the idea of coming to an office and plugging away at a desk from 9 to 5 is the least productive way to work. While some employees thrive in that traditional work environment, others are looking for ways to remain more independent, while still using their knowledge, skills and talents.

If the latter sounds most appealing to you, it might be time to look into the gig economy. With the workforce becoming ever more digital by the minute, work can be done anywhere at any hour. This opens the door for freelancers and independent contractors to take on more work. From customer call centers to pet sitters, web developers to occupational therapists, the numbers of contractors and professionals who work in an agile fashion is only expected to continue to rise.

Are you ready to dive in? To help you along, professionals at Brevik Homeroom offer the following three tips for stepping into this growing community of self-driven, contractual workers.

Tip #1: Pool your skills

There are many professionals interested in freelance work, like web developers or psychologists, who bring a specific trade or skill set to the table. Maybe they have years of experience or degrees under their belt, allowing them to focus on providing one specific service.

However, for others looking to make their mark in a gig economy, success can be found by pooling skills and talents into multiple freelance projects and part-time jobs. For example, if you are looking to be a part-time nanny, consider also marketing yourself as a dog walker. Finding opportunities to spread your skills and abilities across multiple markets is an ideal way to attract the amount of work you need to be successful and self-sustaining.

Tip #2: Stay on top of your finances

As The Penny Hoarder points out, most freelancers are paid as independent contractors, which—among other things—means that they are responsible for paying taxes on their wages. These fees won’t be taken out of your checks for you, so you will need to pay them at the end of the year or every quarter. Nothing is more alarming than realizing you owe much more in taxes than you previously thought. An unexpected surprise in the season of tax returns can really dampen your finances.

If you plan on making substantial wages from participating in the gig economy, consider paying your estimated taxes ahead of time each quarter. There are other ways to be prepared; talk to a tax preparer or financial advisor to set up a plan that suits your specific income.

Also, to protect your personal assets, consider becoming an LLC (Limited Liability Company). An LLC offers other benefits as well, such as scalability and tax advantages. While becoming an LLC could mean costly attorney fees, it’s an easy and inexpensive step if you file through a state-based service.

Tip #3: Balance routine and flexibility

Gig workers enjoy careers built on flexibility and variety, as TSheets points out. You often set your own schedule and accept new projects based on your capacity, passion and interest. However, that also means—unless you have a committed routine in place—you risk procrastinating on work until really close to the deadline. This pattern can not only negatively impact the quality of your work, but also elevate your stress levels.

Creating a flexible structure by planning your days and weeks out in advance, blocking off hours in your day dedicated to work, while also trying to create small routines for checking email and making phone calls can help you find the sweet spot between being productive and being inspired. Things can get particularly stressful at times, especially if you’re trying to sort out a new routine while juggling personal obligations. For best results, keep self-care and personal priorities at the forefront of your planning.

Working one or more jobs in the gig economy is a great way to earn side money to pay off debt, save up for a car or a house or supplement your income. If you decide to take the leap into the gig economy full time, be prepared to go through ups and downs, like a business identity crisis or occasional financial dry spells. Be dedicated and patient—and give it time—to see if this lifestyle pays off for you.

Brevik Homeroom offers curriculum design, tutoring and home-school consultation, as well as informative blog posts like this one!