The number of freelancers and gig workers across the country is rising. As the world shifts into an ever-digital environment, the number will likely only increase as workers decide to begin careers in freelance writing, graphic design, and transcription services.

Freelancers and gig workers can use advice for financial planning to handle the unique financial challenges of these types of jobs. In the article below, Carolina Title Loans, Inc. offers our six top monetary tips and tricks for gig workers and freelancers to ensure they stay afloat financially.

What Are Six Financial Planning Tips For Gig Workers And Freelancers?

Gig workers and freelancers must worry about financial planning to ensure they always have money to pay for their expenses, especially in volatile occupations. Some months may be weaker than others, so freelancers must plan financially to account for the inconsistency in their income. The following are six financial planning tips for freelancers and gig workers:

1. Freelancers And Gig Workers Shouldn’t Fall Prey To Lifestyle Creep

As you earn more money, your expenses tend to rise as well. It's a phenomenon known as lifestyle creep, which can keep you feeling like you're living from paycheck to paycheck, even if you earn more money than before. This phenomenon can especially affect freelancers and gig workers due to wild fluctuations in how much money they earn every month.

While it may seem impossible to avoid, you can prevent lifestyle creep by creating a realistic budget and revisiting it with a monthly budget audit. This will instill exceptional money habits and force you to carefully consider new financial decisions, such as buying a car or home, starting another business, or spending big at your favorite store. 

2. Financial Planning For Gig Workers And Freelancers By Saving For Taxes

In some cases, people who hire independent contractors, freelancers, and gig workers may not take money out of their income for taxes. Those working with different employers all the time must account for this so they aren’t surprised by a huge tax bill in the first quarter of every year. 

You shouldn't just think about taxes during "tax season." In fact, we encourage you to start thinking about them the moment you decide to do freelance or gig work. After all, they are an inevitable payment. Here are a few things you can do to lessen the tax burden:

• Reduce your taxes by saving money in a pre-tax retirement account
• Work with a qualified advisor to find the best way to reduce your tax burden
• Save a percentage of your income in a separate account dedicated to taxes
• Pay quarterly estimates

3. Gig Workers And Freelancers Should Financially Plan For The Low End

There will be highs and lows throughout your freelancing or gig-working career. Some months, you'll be floating on a high-income cloud, while others will keep you firmly near the red.

With that in mind, it's imperative to budget for your lower-income months. Doing this lets you stay comfortable during quiet periods and put more money away in busier moments.

Don't forget to account for fixed expenses, such as rent/mortgage, water, electricity, insurance, and other utilities. You can adjust your budget for variables like entertainment and travel as you discover how much money you earn every month.

4. Financial Planning For Retirement As A Freelancer Or Gig Worker

You may not have a traditional employment opportunity that comes with retirement benefits. However, that doesn't mean you should avoid saving for your twilight years.

If you're freelancing, it's important to think about your future. Treat your retirement savings like a monthly bill in your budget and set up automatic contributions to simplify the process.

You can build your retirement plan as a freelancer or gig worker by investing money into a traditional or Roth IRA, a Simplified Employee Pension (SEP) IRA, a solo 401k, or a defined benefit plan. These can each serve as places to invest excess income that can grow into significant retirement savings.

5. Getting Health Insurance As A Freelancer Or Gig Worker

Health insurance can be expensive, but you shouldn't skip out on it. After all, medical bills are the most common reason for personal bankruptcy, so you need to find a healthcare plan that suits you and your budget.

Paying for a policy is much cheaper than funding bills out of pocket in the future. Financial planning involves preparing for the worst-case scenario, which expensive medical bills qualify as. Research into affordable health insurance policies that you can pay monthly to prepare for possible future medical expenses.

6. Handling Financial Emergencies As A Freelancer With Title Loans And Installment Loans

All the planning in the world can't stop unanticipated expenses from rearing their ugly heads. Financial emergencies like home and auto repairs, medical expenses, and travel costs can upend the budget you worked so hard to maintain as a freelancer or gig worker. When these unexpected expenses occur, you need to know where to go. 

Ideally, you should save for emergencies. Therefore, your emergency fund is always your first line of defense. However, you can always talk to us at Carolina Title Loans, Inc. if you haven't yet saved enough money to cover the situation. We offer title loans and installment loans to potential borrowers with all credit types.

How Does the Process Of Getting A Carolina Title Loan Or Installment Loan Work?

if you want to receive fast cash for financial emergencies, you can easily find out if you qualify for a title loan or installment loan. This requires going through the approval process, which our loan representatives at Carolina Title Loans, Inc. keep simple to help you get through it quickly.

You can start the process online by filling out the online form and just meeting us in person to complete the process. If you are going for a title loan, you can even find out if you can receive your money without ever coming to one of our Carolina locations. Here's how our online title loan and installment loan approval process works:

• Complete the online form on our website
• Speak to a Carolina loan representative on the phone
• Establish a time and place for an in-person meeting
• Bring the required items for your specific loan to the in-person meeting
• The loan representative will go over your required items to determine if you qualify and how much we can offer you
• If approved, sign the loan paperwork if you agree with the loan's terms and conditions
• Receive the loan money the same or next business day

If you qualify for a Carolina title loan, you could receive between $601 and $15,000, based on the value of your car determined during a vehicle inspection. Those who qualify for a Carolina installment loan can earn up to $1,500.

Freelancers And Gig Workers Can Get A Loan From Carolina Title Loans, Inc. Today

By following our financial planning tips, you can avoid financial pitfalls when working as a freelancer or gig worker. However, financial emergencies can still arise that may require you to seek a title loan or installment loan.

If you experience unexpected expenses you cannot pay for, the loan representatives at Carolina Title Loans, Inc. can help you through the loan approval process. Submit our online inquiry form to see if you can get a title or installment loan to pay for your unexpected expenses today.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.