How Do I Live in the Gig Economy?
My name is Alex, and I’m a 29-year-old gig worker living in Portland, OR. I work as a barista and server at a high-end restaurant, but I’m finding that two jobs still don’t provide the financial stability I need. My ultimate dream is to open my own food truck, but with my current income and expenses, it feels far away. I decided to use StartingOutPlan’s scenario-based software to see where I stand and figure out how to make my financial goals a reality.
Baseline: My Current Financial Situation
Let’s start by modeling my current situation—working two jobs without much room for savings. Between my rent of $1,200, other monthly expenses, and the repairs I need for my aging car, I can barely save anything. I’m pulling from my small savings account to make ends meet, and without employer-sponsored benefits, I’m paying for insurance out-of-pocket.
Cash Flow Analysis (Current Situation)
(This graph shows my cash flow with a negative trend, illustrating how my income barely covers expenses and I’m forced to dip into savings every month.)
What I Saw:
- Monthly Income: $4,200
- Monthly Expenses: $3,800
- Remaining Disposable Income: $400 (not enough to save consistently or invest in my future)
- Savings Withdrawals: $100/month to cover medical bills and car repairs.
This clearly isn’t sustainable. I either need to get a third gig or significantly reduce expenses to make any progress toward my future goals.
Scenario 1: What If I Got a Third Gig?
Let’s explore what would happen if I added a third gig to my schedule, such as working part-time for a delivery service. With an additional $1,200 per month, I’d have the opportunity to start building some real savings.
Graph: Expense Comparison
What I Saw:
- New Monthly Income: $5,400
- Monthly Expenses: $3,800
- Remaining Disposable Income: $1,600
- Savings Rate: 20% of income could be set aside, putting me on track to save $15,000 over the next year.
The extra gig income gives me breathing room to save for emergencies and work toward my ultimate goal—owning a food truck. My Expense Comparison also shows that I will be able to achieve my goal of purchasing a home and not have problems until retirement. However, working three jobs isn’t a long-term solution and I am still falling short of where I want my life to be.
Scenario 2: Saving for My Dream (Owning a Food Truck)
I want to see how much I’d need to save to open my own food truck. Based on research, I estimate the total startup costs for a food truck will be around $60,000, including equipment, permits, and initial operating costs. Let’s model a scenario where I cut expenses by $300 per month (by canceling services and extra expenses: gym, dining out, etc.) and take out a small loan to cover half of the food truck costs. I will also push my retirement goal to age 72 since I will happily work longer if I am living my dream.
Graph: Net Worth and Expense Comparison
What I Saw:
If I am able to stay a gig worker for 4 more jobs with one additional gig, I can finance my dream food truck while still accomplishing my retirement and vacation goals. I may actually be able to expand my goals as my 120,000 annual income with my drream ffod truck is conservative and is not being projected to increase at all. I will reassess all of this when I am in position to purchase my food truck and fund my new business, but my hope is that I can grow this business and maybe have multiple trucks and a staff in ten years.
This is an amazing analysis. I need to work very hard for the next four years, but the numbers tell me that my dream could be a reality in only 4 years if I stick to the plan, and the future is even brighter as my "gigs" become my dream job in a relatively short time.
Conclusion: Planning for a Better Future
This financial journey taught me that gig work alone isn’t enough to reach my long-term goals, but by using StartingOutPlan, I was able to model different scenarios and see how changes in income, expenses, and debt can dramatically alter my possibilities.
Adding a third gig might be necessary in the short term, but with strategic savings and proper planning, I can eventually transition into owning my own food truck, which will give me more control over my financial destiny.
Notes from the Help Desk:
The Importance of Comprehensive Planning
It’s important to note that this case study presents a simplified financial scenario. In a more accurate personal financial scenario, we would incorporate as many details as possible, including specific expenses, financial goals, and the details of all debts and assets. This comprehensive approach ensures a more precise and tailored personal financial scenario.
The Role of Professional Advice
Despite our confidence in StartingOutPlan, we recognize the value of professional advice. StartingOutPlan equips clients with a solid understanding of their finances, but we recommend reaching out to consult a financial professional before making important financial decisions.
Our mission is to educate you on how self-guided financial literacy can be effectively utilized to maximize your resources and opportunities.
While the cases we present are inspired by real-life scenarios, some details have been altered to respect privacy.
These stories and scenarios are provided for educational purposes only and should not be construed as financial advice.
This content is provided by The Client Services Dept. of PlanTechHub, which is responsible for Support & Training of our technology.
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