Start thinking about WHY, WHEN and HOW to save money
You probably hear it all the time. Maybe you hear it from your friends, from your family, or even from a little voice inside your head once a while. Now you will hear it from us: you have to save money!
But we know that for an independent worker, it is a difficult task. You are on the road every day giving rides, delivering groceries, providing massages or helping the seniors, you are not sure where to start, you don't know how much to save, you may have large debts, your earnings are not enough to put money aside, etc...
Saving money takes effort, time and discipline. You actively have to tell yourself that you will not touch these $50 today because you want to save them for something else tomorrow. As humans, we are not really wired to plan for tomorrow and easily make that type of decision. Dealing with today only is much easier because we don't have to make that choice between today and tomorrow.
However, what happens when your car breaks down and you don't have money to quickly pay for the repair? What happens if you have an unexpected medical expense? What happens if you need to replace your lawn mower to continue working?
If you have savings, you will probably manage. If you don't have any savings to cover these emergency expenses, you will probably have to access the money from a provider that can deliver the money fast (thinking about credit card companies, personal loans or payday loans). While we understand that sometimes there are no other choices, we want to make sure you know how to avoid these high-interest rates options and be in a better position. And it starts with saving money regularly. Start by asking yourself WHY, WHEN and HOW to save money and you may create a simple routine to stash dollars at the end of year.
Why should I save money?
You should not save money just for the sake of saving money. If you don't understand why you are doing it, you are probably not going to do it or at least not going to do it for long. As saving money is about planning for tomorrow, why should you be saving money? That's the starting point. And that's a starting point that will be different for everyone.
Here are some of the stories we have heard from you...
Most of you actually need that additional income to pay your bills, pay your rent and all these other things today. You probably don't have time to think too much about tomorrow. But take a few minutes. Why are you working so hard? What motivates you? Where do you want to be 5 years from now? Asking yourself these questions might help you understand where you want to go.
When should I save money?Let's start this with a quote we really like at house of gigs. Joe Moore, a relatively unknown news anchor (unless you've lived in Hawaii for some time), famously said "A simple fact that is hard to learn is that the time to save money is when you have some". Yeah sure, that's quite obvious, right? But... drumrolls... most people actually don't do it. Most people don't do it AT ALL!
Why is that do you ask? Good question! It goes back to the choice we were talking about earlier. That difficult choice: spending today or saving for tomorrow.
When times are good, we feel that we have more than enough money and we will always be able to save later. However, when times are tough and earnings are tight, we tend to hold on more to what we have. It does not make sense right?
You would agree that it is tough to save something you don't have! That's why if your earnings coming from the gigs are putting you in a position where you feel good, don't forget it is the BEST TIME TO SAVE towards the goal(s) you have set for yourself.
How should I save money?Yes, saving money is not easy. But if you have decided on your why and understand when to save money, the next step is to actually do it. And if you reach that step, you should make it easy on yourself.
You should not pay to save money. You should not start stashing huge amounts aside (unless you really feel you can afford it). Don't invest in things you don't really understand (many companies want to sell you incredible money generators. If this sounds too good to be true, it probably is).
Our motto in starting in the savings world is the 3S: Simple, Small and Supportive.
We think that we understand independent workers, like you, much better than most people out there. As we are preparing to launch our own banking solution including an FDIC-insured, free and simple savings account with no monthly fees and no minimums, we are really excited to provide you with a simple way to stash your money. Money that will grow at a 1.85% APR with our savings account. OK maybe we are a bit biased but it's going to be quite awesome! Here is a teaser:
Sign up to the waitlist and be among the first ones to know when we will release it, CLICK HERE to sign up!
As usual, if you have any comments, feedback or suggestions, we would love to hear from you. Just shoot us an email at [email protected].
The house of gigs team
We're here for independent workers you.