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Understanding the Gig Economy
Are you a member of the “gig economy”? If not now, you may eventually join it.
The “gig economy” refers to workers who are independent contractors or who hold temporary positions. Freelance writers are part of the gig economy, as are bands and a self-employed IT expert who works from home. But so is a four-month temporary job as an office administrator. These are short-term work assignments, some lasting just a day or an evening and others for months.
A study from Intuit, a software company, predicts that by 2020, 40 percent of US workers will be holding temporary jobs. This means that more than 9 million people will be joining the gig economy. Unfortunately, the gig economy doesn't treat everyone fairly. These workers may suffer from pay cuts even though they now do the same work they once did as a regular employee and they rarely get benefits, such as health insurance or a chance to participate in retirement plans.
At a recent conference for financial professionals held at the University of Maryland, one speaker addressed how credit is handled by someone with temporary positions or as an independent worker.
One of the biggest challenges these gig workers face is getting credit for themselves to buy autos or homes or to get a personal loan. The speaker recommended that people in the gig community separate business and personal credit so that:
The self-employed can use the following:
Below are some apps for people in the gig community. These are not recommendations (we’ve never used any of them), just starting points to help you get started.