The “Do Over” Economy

Key Takeaways

  • The best money habit you can have is to save first and spend second.
  • Today’s freelance “gig” economy gives millions of talented people the opportunity to earn extra money on a flexible schedule that they can control.
  • Today’s gig economy also gives many people a second chance to get their adult money habits right.

*** Remember our Tech Night tomorrow evening from 5 p.m. to 9 p.m. at the Wyndham Glenview Suites hotel on Milwaukee Avenue.

I’ve taken about 100 Uber rides over the past year, and I often ask my driver why he or she is working for Uber. The responses are remarkably similar:

  1. They’re saving extra money to buy a house.
  2. They’re saving for retirement.
  3. They’re paying down debt.
  4. They’re trying to get an education.

One of my drivers was a high school English teacher who got up at 5 a.m. every school day and drove for a few hours before going to his “day job” at the high school. He was paying off his student debt. Other Uber drivers told me they were trying to pay their way through school to earn a bachelor’s or a master’s degree. One of my drivers was finishing up his Ph.D. in psychology.

In addition to Uber, you have Experfy for freelance data scientists, Topcoder for freelance programmers, Fiverr for freelance writers and creative people, and many more. Instead of the gig economy, I’m calling this the “do-over” economy—a second chance for people who didn’t make good financial choices early in their adult lives. They didn’t follow the number one smart money habit—save first and spend second—the first time around, so they have no extra money.

In the old days, you had to work a second job at night, maybe as a convenience store clerk, to earn extra money. You had to work for a boss and be on the job during certain specific hours, and you had no flexibility in your schedule. Today, all you need is a smartphone and an internet connection, and you can set your own hours.

So what’s the benefit from this?

  1. You can save first and spend second now because you have extra money, and you can start to build wealth successfully.
  2. You can pay debt down faster, which frees up cash to do other things.
  3. You can restore your credit rating. If you have a hard time paying your bills and your credit is lousy, the money from your extra gig can give you extra money to pay your bills on time and restore your good credit rating. Building credit does many positive things, including lowering the interest rate that you pay on your loans.

The do-over economy gives millions of people a second chance to get their money habits in order.

Conclusion

Don’t forget our annual Tech Night tomorrow evening at the Wyndham Glenview Suites hotel from 5 to 9 p.m. We’ll help you understand cybersecurity, protecting your online legacy, Alexa, digital basics and so much more. If you can’t make it in person, you can stream it live on Facebook.

Hope to see you there. Until next time, enjoy. Gary

gary-w-klabenGary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country.  He has over 30 years of experience and is the author of Changing the Conversation, The Wealth Sanctuary and co-author of The Business BattlefieldWhether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.

www.coylefinancial.com
800-480-7913 | coyle@coylefinancial.com 

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