So you're single and you're a gig worker or freelancer. What to do?
Hi, I’m Renée, a finance and business journalist, writer and content strategist. The Budgette is a chill newsletter about single finances and is published twice a month to more than 2,000 subscribers.
I prefer to write when I have something to say and it gives me time to speak to financial, legal and other experts. When I’m not here, I work on content strategy and execution for Canadian and U.S. publications and brands. If you want to work together, message me or you can find me on LinkedIn.
I’m not going to lie to you and say I don’t worry when I see layoff news and the difficulty in finding a job. Being single and working as a contract, gig worker or freelancer has its pros and cons.
On one hand, you have the freedom to set your own schedule and work on projects you love and there is no real ceiling on how much money you can earn, only on how much you really want to work, burn out and cry because hustle/grind culture gets toxic.
It also makes you resilient. I think that single people are very resilient just by living in a society that still caters to couples but single contract and gig workers have that extra bit of resilience. So high praises to everyone.
On the other hand, without a steady paycheque or a partner to share responsibilities, things get scary when you lose a client or a contract isn’t renewed because bills and retirement don’t care if you aren’t working. They need to be paid. While I know I have options including my family or living on lines of credit, I really, really don’t want to be put in that position, so here are some things I’m doing. Some are things I can control, others just give me a sense of control.
Get your finances in order
Budgeting basics
This is the obvious one and yes, I know we can’t budget our way out of things like the housing crisis or pay discrepancies for marginalized groups but when your income varies month to month, having a budget is crucial. That’s because you’ll know where you spend your money. It’s that ‘give every dollar a job’ as said by certified financial planner Jackie Porter.
I usually have a decent idea of my monthly earnings so once I have that, I break down my budget in the following:
Bills: maintenance fees, food, hydro, insurance, property taxes and special assessments (at $100 a month for those two so by the time those bills arrive, I’ve saved up the money painlessly and pay them off in full.) As an fyi, my property taxes went up by $118 which was less than I expected.
Savings: RRSP, TFSA, cash savings for vacations or in this case, a new tv as mine died after 15 years. I’m looking at Costco for a new one because I don’t care about how smart my tv is. I prefer the dumbest smart tv I can find.
Entertainment: Summer is (almost) here and that means trying not to go wild on the patios. This part is the hardest part of staying on budget for me.
And yes, I automate everything as much as possible. It makes it easier for me to save and budget.
Emergency fund
An emergency fund is a must-have, see looking for a dumb smart tv. (Any recos are welcomed). The usual is to save enough to cover three to six months of expenses but honestly, start with a month. Save up what you need to pay bills for a month so you at least have a little bit of breathing room.
The easiest way (and I know that’s relative so bear with me) is to look at what you earn and what you spend on the necessities in a month, divide it by the number of months you want to do it in, then set up automatic transfers to a savings account to make this easier. This fund will be your safety net when work is slow or unexpected expenses pop up.
I wrote about how to actually save for an emergency account here.
Taxes
Taxes can be a headache for freelancers, but staying on top of them is essential. Set aside a portion of each payment you receive for taxes— and this is important put it in a completely separate account from your chequing. Do not get a debit card for it.
Multiple income streams
Don’t rely on just one client or type of gig. Diversify your income by taking on different projects. This not only makes your finances more stable but also keeps your work interesting. Again, I say this with caveats as this is something not everyone can do due to physical, mental and other reasons.
Build a support network
Freelancer friends
Working alone doesn’t mean you have to feel isolated. Connect with other freelancers through online groups, social media, and local meetups. They can offer advice, share job leads, and provide moral support and practical advice like what to take out of contracts (I see you, liability clauses - no, you don’t pay me enough to take on full liability).
You don’t have to be in the same industry, either. I think it’s better to have friends outside of your industry otherwise you just end up complaining about the same things over and over again. (Venting is good, constantly meeting up to complain is not.) Plus, they can provide a different perspective on an issue.
Keep in touch with your friends and family. Share your successes and challenges with them which can make you feel less alone.
Join professional groups
Professional organizations related to your field can be invaluable. They offer resources, training, and networking opportunities that can help you grow your business. A lot of the time the fees are tax-deductible.
Prioritize self-care
Set a routine
I’m not the best at this, so this is going to sound hypocritical. I am, however, trying to be better about it. I keep regular working hours, between 9-5, take breaks, and make time for meals and exercise. Yes, I will occasionally work on the weekends but try to keep it to two-three hours. (ha!)
Create boundaries
Working from home can blur the lines between work and personal life. Designate a specific area for work and set clear boundaries for when work starts and ends. Turn off work notifications after hours to help you unwind. I live in a one-bedroom condo so my dining table has been my desk for more than a decade. I’ve just gotten very good at ignoring it outside of working hours.
Enjoy your hobbies
I’ve been taking Spanish lessons for the last year with an actual teacher, not just Duolingo and have reached the ‘I have enough knowledge to sound vaguely comprehensible’ stage.
Does this have anything to do with work? Nope, more like daydreaming about living abroad and not wanting to be monolingual.
I do regret not taking Spanish class seriously in secondary school but I didn’t see the need apart from having to pass exams. Looking back, I think I would have been more enthusiastic if I’d been told that being multilingual would let me travel and live in other countries and understand what’s going on. Neuroplasticity!
Also, having hobbies stops you from making your work your entire personality. That way, you aren’t your work or job so should something happen, you won’t feel that you’ve lost yourself. You have lost your job or a client but you’re still you.
This week’s readings:
By me: FP Canada’s 2024 Financial Stress Index: What’s worrying Canadians right now (MoneySense)
Also by me: ALDAs protect against longevity risk (Investment Executive)
One more by me: Taking a byte out of cybercrime (Toronto Star)
This is the personal finance test high schoolers should have to pass before graduating (The Globe and Mail, paywalled)
The Toronto Public Library has personal finance programs including one on learning about subsidized housing.
How to Reduce Your Risk When Using Personal-Finance Apps (WSJ, paywalled)
Best personal finance software of 2024 (Techradar)