BUSINESS SPOTLIGHT: Millennials Ditching the Stress of Regular Careers for the Gig Economy

By  //  May 25, 2018

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Millennials are slowly breaking free of the financial stresses that seem to plague them, and the gig economy is giving them that peace of mind.

Millennials are slowly breaking free of the financial stresses that seem to plague them, and the gig economy is giving them that peace of mind.

Now, becoming a freelancer is not always simple. It does require millennials to take on considerable risk but it offers freedom. There are a number of steps these young people have to take to make sure their freelancing lifestyle works. Still, it seems that the gig economy is booming, so highlighting the steps to make this transition is important.

Financial Literacy is Vital

Financial literacy may not be taught in many schools in America but it should be. Money management is a skill, and freelancers need to find ways to refine this skill as workers in the gig economy. There are a few reasons this is important; for one, this type of work does not guarantee young workers certain necessities, such as workers comp or health care.

The US does not guarantee health care, and these costs are incredible. A freelancer assumes these costs, and the employer gets to wash their hands of this responsibility. This means young people need to put away a significant amount of money just in case the worst happens, or at least buy private insurance to help them offset this issue.

Degrees That are in Demand Within the Workforce

Just like regular jobs, certain positions allow the freelancer to demand higher pay. It is up to the independent contractor to figure out a way to become more valuable to employers. This means freelancers need to pay attention to salaries and positions that are in demand such as HR positions.

The good thing about positions like the one just mentioned is that many of them can be attained online from schools like RMIT. A freelancer with a Master of Human Resources Management from RMIT University could demand higher pay than many other professionals, and the credentials can be earned on their own time. In essence, a millennial can work other gigs while attending classes to further their career on RMIT online, which is probably one reason these young people are stepping away from regular nine to five jobs.

Reduce Expenses to Survive the Storms

The gig economy does not guarantee a job, and this is a fact that millennials have to internalize. Sure, there may be good months, but gigs may not show up, or clients may pass over a freelancer for another. It is important that young freelancers figure out a way to reduce their expenses to ensure they can deal with setbacks. Yes, properly managing their savings can help deal with possible dry spells, but freelancers need to take things a step further.

Mortgages, credit card bills, car loans, and other types of loans can be detrimental to a freelancer. Money can disappear faster when there are a lot of bills to deal with, but a freelancer who effectively gets rid of bills can weather the storm a little better.

It would be wise for independent contractors to talk to financial planners to figure out the best way to do things like buying a home free and clear among other similar goals.

These are just some steps millennials have to take to ensure a successful transition into the gig economy. The freedom, mobility, and overall peace of mind that this type of economy offers millennials is shifting the American economy in unforeseeable ways. There is no doubt that these young workers are brave, but every generation changes society one way or another, and these changes can be good.

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