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Gig workers all across the board are commonly affected by the inevitable expense of being a 1099 worker. From the high gas prices and frequent fill ups, to the vehicle maintenance and insurance. What about the other fees that are often times ignored, yet still eat into your bottom line? Hang out while we explore these and other common expenses and how gig workers like you can start making your money go to work for you.
The expenses that go into maintaining a vehicle.
Fuel, car notes, insurance, and ongoing maintenance all have a way of decreasing your profits. These expenses often times cannot be avoided, but the best way to feel like you’re never earning enough money, is to not be intentional with your earnings.
Save money where you can, track the rest.
While there isn’t much we can do about the fluctuating gas prices or maintenance expenses, many workers report success when they better track their expenses and recoup those savings during tax season.
Don’t spend more on car insurance than you have to. Many delivery and rideshare drivers assume that they should keep their current insurance when they first sign up to work a new gig. This may not be true. It is always in your best interest to shop around to make sure you’re saving money on auto insurance when possible.
The harsh reality of bank fees.
How much are you paying to bank these days? Are you meeting the minimum requirements to avoid the monthly fee? Are you paying ATM fees? What about allowing your money to sit in a non-interest earning account? (Yikes!)
Reconsider the way you bank.
Traditional banking isn’t what it used to be. If you’re happy with your current bank, stay there. But if you take a look at your bank statements and notice a lot of unnecessary fees, ask yourself, “What else could I have done with that money?”
If the answer is anything else, perhaps it’s time to reconsider the way you bank. We wrote about why we think Gig Workers need an Aspiration account here .
Besides no credit checks, no ATM fees, pay what is fair, and retirement accounts, your Aspiration Save & Spend account puts money back into your account with Unlimited Cash Back and 2.00% APY High Yield Savings. This means that everytime you swipe your card to pay for gas, or lunch, or your car note, or any of your other expenses, you will receive cash right back into your Aspiration account every month. This is what your money working for you looks like in it’s simplest form.
Those pesky miscellaneous expenses.
We all have them. The little vices that cause us to unconsciously spend. Or the magical expenses that seem to pop up out of nowhere, just when we thought we were doing good. Yeah, we know about them. Some of these expenses can be hard to avoid (your kid outgrew those brand new shoes already?!?). Other expenses, like grabbing that latte, on the other hand, can be rearranged.
Hands off the cash, pal!
Now that you’ve taken the time to map out your expenses, create an intentional budget to get you through the week, or month, and put the rest of the money into a High Yield Savings account. By regularly transferring your money to a high yield savings account, you are making your money earn interest that it would not otherwise earn by sitting in your checking account, or in a wad of cash under your mattress. Traditional banks offer some type of yield on savings, but ideally, you will want to go with an account that offers the highest APY like Aspiration Save, or CIT Bank, American Express Personal Savings or even Marcus.
Being an independent contractor means that you have to be even more vigilant about your money. Budget, track, and save to help ensure you get the most return for your money.