How do I live in the "Gig Economy"?

Primary Blog/How do I live in the "Gig Economy"?

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. 

Welcome to FinLitYou Stories!

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.
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This content is provided by The Client Services Dept. of PlanTechHub, which is responsible for Support & Training of our technology.

​​We're dedicated to helping you navigate and utilize our resources to enhance your financial literacy journey.

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