Three Financial Services to Support the Gig Economy

Hold up…what’s the gig economy? The International Revenue Service (IRS) defines the gig economy, also known as the sharing or collaborative economy, as an “activity where people earn income providing on-demand work, services or goods.”

Instead of a 9 to 5, these individuals work 3 to 4…or 8 to 12…or whatever hours they choose. Gig workers aren’t traditional employees who are assigned shifts; the decision of how and when they make money is in their hands. For example, you have a friend who does quick graphic design projects for people as a “side hustle.” Surprise! Your friend is part of the gig economy.

The History Of Gig Work

How did we get to this nontraditional form of work? Let me start by asking a famous question from the one and only Barry B. Benson; “Ya like jazz?” Let’s hope so because that’s how “gig” work was born. Back in 1915, jazz musicians would refer to the performances they secured as “gigs.” Today, you can think of individuals engaging in short-term work as their version of booking a jazz performance, hence the gig economy.

Gig Jobs And Platforms

Today, 36% of Americans (57 million) are part of the gig economy via secondary or primary jobs. Often, this freelance work is initiated through digital platforms like Upwork, Fiver, Craigslist, or other apps and websites.

Your Uber driver, the dogwalker from Wag, and the DoorDash guy are all possible examples of gig workers. Check out more potential gig opportunities here.

Why Do People Do Gig Work?

Gig work benefits both the working individual and the client, expanding the horizons of what can be achieved by whom and when.

For the gig worker, these jobs:

Bring in extra money
Increase work-life balance
Improve time flexibility
Enable the pursuit of passions

For the client:

Gig workers are cheaper than full-time employees
Freelancers are beneficial for short-term projects
Gig work eliminates the need for training of current employees
Gig workers in different time zones can fulfill urgent needs

Got it! Why should I care?

The global gig economy is expected to generate $500 billion in gross volume over the next 5 years. In case you missed it, let me write that again. $500 BILLION. Mind. Blown.

Easy to say, this type of work is prevalent and growing. Gig workers need the best financial resources and tools they can get to continue providing the goods and services we all know and love.

Three financial services to support the gig economy

1. Direct deposits

Having reliable, safe, easy access to your hard-earned money is vital whether you’re a gig worker or not. The ability to accept direct deposits means no waiting around for a check, no need to stop at the bank, and no delayed check-clearing process. Money is safely deposited into your account without any additional fees or wasted time you could have used to keep your hustle going strong.

Experience direct deposits with 1166 FCU and gain access to the financial control you deserve.

2. Emergency funds

A downside of the gig economy is that workers don’t receive benefits such as sick days, insurance, or job security. Having a consistent job that pays the bills isn’t guaranteed, which is why emergency funds are crucial for these individuals. These funds are specifically designated to cover the expenses of unexpected events such as job loss, medical emergencies, or car repairs

1166 FCU provides easy-to-use, personal banking services that help individuals create an emergency fund. Members can take a deep sigh of relief, knowing their money is safe and accessible, ready to help avoid future financial turmoil.

3. Personal loans

Let’s say you’re just getting your feet wet with gig work and you need some money to help you grow the services you offer. The problem is, you don’t have that money, which is likely one of the reasons you joined the gig economy in the first place! Personal loans may be the solution for you.

1166 FCU offers many personal loan options that allow gig workers to focus on the task at hand and provide the services they need to grow their network. With competitive rates that align with your budget, our loans can help you achieve your goals without financial stress.