The phrase doing a gig has been around since a long time. I was introduced to the term way back in the late 1980’s when studying in London by aspiring musicians or actors within my circle of friends.

It wasn’t uncommon to head to an artist-centric pub with other friends to watch their band play or act in skits. We supported their gigs because we were aware that their income depended on these gigs.

I admire people who are willing to play the role of starving artist with the dream to hit it big time if they hang on long enough and get the right breaks.

It requires a lot of self-motivation and resilience to handle the out of work periods.

The story of Van Gogh apparently doesn’t bother them or if it does, they don’t show it.

My interest was aroused last year when a friend from my LinkedIn network told me about how the gig economy was acquiring new entrants in the pandemic world.

That was the time professionals were reaching out asking for help in getting jobs and even though I’m not in Executive Search, I wanted to give them ideas to apply and this was one worth exploring.

Normally when we talk about gig economy, one thinks about

• Uber/Lyft drivers
• TaskRabbit workers
• Airbnb landlords
• Online marketplace sellers
• Volunteers
• Artists

But the new entrants my friend was telling me about were professionals who were highly skilled and open to contingent work arrangements and included

• Freelancers
• Consultants
• Independent contractors and professionals
• Temps (temporary contract workers)

Professionals who had lost their jobs or were furloughed were entering that segment of the employment market. .

There are industries where doing gigs is normal but here my friend was telling me about other industries where the gig concept was getting embedded.

From what I know, gigs can be risky ventures and one has to have a lot in place if one plans to make a good living from it.

But it’s a good way to test the waters if you’re planning to become a freelancer, have a side hustle or even start a business.

What’s the gig in Gig Economy?

The gig economy gets its name from each piece of work being akin to an individual ‘gig’ – although, such work can fall under multiple names.

The simplest definition I could find is a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

It isn’t freelance work as such although both gigs and freelance workers are hired for one-time jobs.

Also, if you ask a freelancer to be honest, they’ll most probably admit they’d prefer a long term contract or continuous project over the one-time freelance gigs or temp assignments.

Gig work can fall under multiple names and according to an article I read, it has been called the “sharing economy” — mostly in reference to platforms such as Airbnb — and the “collaborative economy“.

However, at its core are app-based platforms that dole out work in bits and pieces — making deliveries, driving passengers or cleaning homes — leading some to prefer the term “platform economy”.

Please note that not all gig economy roles are based around a technology platform and gig economy workers can also work for more traditional companies who might have changed their staffing system.

The article gives the example of delivery drivers for Hermes who work on a piece-by-piece delivery basis.

The gig economy is also found in India in the form of drivers of Uber (or Ola), delivery guys of Swiggy, and plumbers and masseurs you find on services such as UrbanClap.

None of them is an employee of the company you’re contacting for the services but instead, they are “partners”. This means they get paid a commission or earn a share of the bill when they work; and when they don’t, they get nothing.

Much worse, these workers lack protection and fair pay and their income is dependent on the gigs they get.

They don’t get holiday or sick pay because the companies that hire them can claim these are contractors.

Reforms are required for these workers and governments in many countries are starting to recognize this fact.

Then why are highly qualified professionals now joining the gig economy?

The answer to this question is simple – following the sudden loss of full-time employment due to COVID-19 out of work employees needed to find a way to sustain themselves and survive.

In my blog post advocating starting a new business during the pandemic, I’ve mentioned that 57% of those professionals surveyed by Salesforce said being their own boss was the ultimate inspiration as well 25% of respondents brought forward their plans to fly solo.

This scenario is slightly different as it was born out of necessity and then transformed into a way of working for oneself as a freelancer.

At the same time, companies who had laid off staff to survive the total lockdown found the need to get talented and qualified labour back but were not in a position to offer full-time employment.

It looked like a win-win situation.

But when the golden glow of benefits like flexibility in work, efficiency, additional income for the jobless, improvement in productivity and sustaining the bottom lines of the companies that hire gig workers starts to fade, we need to look at some hard facts.

For one, you’ll be seen as an independent contractor and responsible for your own accounting, safety and taxes!

All the issues that apply to the low pay gig workers will apply to you too.

Mitigating the risk and enhancing the rewards of being a gig player

If you really want to make money (and you can) then you need to do your homework first and get all your ducks in a row.

The first thing to check is if there enough demand in the market for your gig.

Even though it will be one piece of work at a time, you have to ensure there are enough people and companies out there who are looking for the skills and experience that you’ll be selling as a gig.

Your mindset is going to be your strongest ally and you need to make the shift from being an employee to a business owner.

It’s equally important to remember the gig economy is all about self-directed freelance work and part-time jobs that let you set your own schedule and work as much (or as little) as you want.

You must be able to handle the pressure of managing the gig without direction as well as all the other hats you’re going to have to wear like marketing, client management and finding work so that your time is utilized.

You’re going to be responsible for negotiating terms like time, hourly rates and scope of work done using your skills.

You might also need to upgrade some skills to ensure your gig work is run like a business.

Secondly, consider the vehicle for your gig – will you be a sole proprietor or launch a proper business with all the paperwork and reporting to the tax authorities?

I’d suggest keeping it simple to start with and consulting a good tax accountant too because the tax structure and deductions are different for salaried people, self-employed and companies.

Don’t spend all your income in one go but put some aside for tax season so that you’re not in a fix later on.

Beware of hidden costs because doing gigs isn’t all income and no expense!

For example, will you be traveling or visiting the client site? Factor that into your quotes. Using the internet to deliver work? Assess how much of that additional expense is related to gig work.

Will you need to take out professional indemnity insurance? Cost of bookkeeper, tax accountant, lawyer to help you with contracts? These are all costs that need to be taken into account.

Which reminds me, make sure you open a separate bank account for your gig business and use it for both income and expenses. Keep it separate from your personal bank account.

You can do your own accounting with different software accounting packages that are available otherwise your tax accountant might be able to refer you to a part time accountant who can create your books for you.

You also need to choose the right gig which takes into account your goals, personality, skills and time. Don’t jump into the first gig that comes along.

Instead, invest time learning more about the gig, the scope of work, negotiate the hourly pay or the gig amount and make sure that you’re not losing out.

Create a proforma contract for the work you do or if the employer has the contract, go through it and discuss all terms and conditions to make sure you don’t end up doing more than you’re supposed to.

When you get it right, you can earn a lot more than you did in your full-time job and the earning potential is unlimited. That’s a great confidence booster too!

The gig may be a temporary thing for you while you wait for the economy to bounce back, but the rules of professionalism still apply.

Getting good reviews and feedback from customers will help with references and the company employing you might just offer you permanent employment once they are in a position to afford you.

The bottom line is, yes, you can make good money in the gig economy provided you do your initial research and choose the right gig.

And if you need more guidance, you need to get Karmic Ally Coaching’s Gig Economy Bundle and use it.

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This month we celebrated Financial Literacy Month at The Karmic Ally Coaching Experience Blog. The topic for the April teleclass focused on 3 actions that we need to take before we start thinking of managing our money.

As a Finance professional, my intention was to give the reader and the listener enough tips, tools and strategies to help them find a solution to their pressing money issues as well as help going forward.

This is my 3^rd post in the Financial Literacy Trilogy (I just HAD to use this word; you know what I mean) where I’m sharing one of the tips from my teleclass. It is important to anyone who wants to make decisions about their spending that are aligned with their goals and needs.

A new conscious approach to spending

This mindset tool will hold you at your authentic self and keep those money eating impulse spending gremlins at bay. Besides, it is easy to implement.

Always remember, if you are finding it difficult to implement this exercise, defer spending for a day or two and then try again

Step 1: Choose the top 2 financial goals for the year, whether they are in your personal or professional life. Don’t spend too much time on this; let your intuition guide you. Choose 2 that immediately come to mind and write them down.

Consider any money that you spend to be an investment.

An investment has 3 core qualities.

1. You expect a Return on Investment (ROI)
2. It is clear HOW this ROI will happen
3. You have a date by which you want to start seeing this ROI happen

Step 2: When you are tempted to spend money, ask yourself these 2 Money Coaching Questions:

1. Is this an investment or fulfilling an important need or am I just spending money?
2. Is this investment in alignment with my financial goals and values?

Yes to investment and Yes to goals and values means you are making an investment decision from a conscious frame of mind

Try this exercise for size. You’ll notice the shift in your money spending and more money savings for the things you really need and even want!

Round up: money and finance actions!

I wanted to say ‘round up the posse’ but then, decided otherwise in case Google sent horse owners to me looking for tips on horses.

Jokes apart, this post is a roundup of all the posts I have written on Money and Finance and worthy of bookmarking in case you need to refer to it again.

You can click on the image or on the title of the post and a new window will open to the content.

A new conscious approach to spending (that’s this post)

Want to know how to create pots of money? (that’s where I shared how to start allocating money using a jars approach)

Money matters: Are you really on top of your finance game? (dare to try the self-assessment and learn if your money management practices are up to the mark?)

Top Secret: Your Little Habits create Big Savings

3 ways for steering runaway money horses back to stable -big ticket items

Money Management and Lifestyle Maintenance

3 important actions you need to manage your money – our featured teleclass. Sign up for the replay by clicking the image above or on this link and pick up some more tips before you create a budget.

Final Words:

This is just the tip of the iceberg on information and knowledge about money and finance. The posts were written with the intention of helping the reader make informed decisions and guidance to enable them to understand the areas where they do have control over their money.

If you want to really want to raise the energy of money in your life, then Money Success Secret: The Alchemy of Mindset and Magic is for you. Learn more here.

Which post was your favorite?

Tell me which tip you really liked or how you benefited in the comments box below

Please do share this post.

You never know who needs to read this information from within your circle.

It’s not unusual to look back at our carefree childhood days and remember the safety net that our parents provided.

What we often forget is the money management lessons that they might have imparted too. Including the scolding that preceded the negotiations and bargaining when one asked for extra dole outs.

My parents allowed me to ‘earn’ the extra cash by reading books from their amazing collection and providing them with book reviews. That led to developing a lifelong love for books and I can’t imagine my life without my literary companions.

I’ve recounted the story in my blog post Negotiate to Win. It is also a tribute to my late father who not only awoke a love for literature in me but made me understand the value of work as I earned my way to my first cassette recorder.

It was also a lesson in financial literacy for me!

As an adult, I often wish I could do similar negotiations and tap into abundance. The truth is that one has to learn money management skills. I learned the income and saving part as a child.

The expense side and figuring out how to balance a budget came soon enough when I entered the workforce.

One thing that I did learn early on is that how much we make is not as important as what we do with what we’ve got. In other words, getting the most out of our money is the key to proper money management.

When I originally wrote this blog post in April 2016, my intention was to celebrate Financial Literacy Month focusing on areas of money and finance awareness through a blog series.

The objective of this blog series is to help you, no matter your stage of life, to start working towards achieving your financial goals.

Some of your goals might require a certified money manager or an investment adviser to guide you. Those professionals will have a longer-term view of your finances and the big picture. Such decisions are outside the scope of this post.

I have since published a Kindle book Money Success Secrets: Alchemy of Mindset and Management.  This explores how to befriend the money resources that we have and make them work better for us.

(Here’s the link to the book)

In this post, we’ll look at your current stage of financial management skills. The aim is to get you thinking about areas where you can help yourself manage your wallet.

Are you game for an honest financial practices self-assessment?

Everyone loves a good quiz and self-assessment. Let’s look at your financial practices.

Financial Literacy Self-Assessment

Total your score: 0 points for each never; 1 point for each sometimes; 2 points for each always

How did your Money Management Score Go?

26 – 36 points suggests you are practicing good money management skills.

15 – 25 points suggests that you are doing well in some aspects of money management but can improve your money management skills – my book will help.

0 – 14 points suggests that you need to improve your money management skills – you definitely want to read my book!

So how did it go? Did you learn something new about yourself? Anything that you feel you can change this week? Do share in the comments box below! 

Make Friends with Money 

If Money is a challenge that you really want to fix, then I invite you to read my Kindle ebook Money Success Secret: Alchemy of Mindset and Management available on all Amazon markets. Click here to learn more or on the image below.

You are also invited to sign up for the free Financial Literacy Month teleclass 3 important actions you need to manage your money.  Click on the image to be taken to the sign-up page.

A new window will open with all the details.

Tip No 2     Planning

Planning is a great way to save, not to mention getting the most out of your money.  If you’re going shopping, make a list of what you need and stick to it. Be particularly careful in malls. In Delhi at least it appears there are perpetual sales in many shops.

At one particular mall that I visited recently, the security guard in front of a retail shop catering to teenager and younger women tried to persuade me to at least walk-in to the shop.

Sounds pretty bad especially if it has been a decade or two since you were in the right age group. Most mothers know better than to buy their teenage children’s clothes.

When it comes to financial planning, it is advisable to break your goals into short-term, intermediate-term, and long-term.

Set milestones for the intermediate and long-term goals. Being able to see your accomplishments is a great motivator for you to work hard at saving.

Tip No 4 Stop Competing with Others 

Competition is natural and as long as it is healthy it is good, but one needs to know when to draw the line. You do not have to compete with anyone.

Be proud of what you have and who you are. It is perfectly alright to want the best that your money can buy, but it should be something that you want for yourself. Not to impress others or because EVERYONE is buying it.

Final Word on Money Management

Coins by George Hodan