Earning, Saving, , , ,

Life is expensive.  Having side hustles and participating in the gig economy are great ways to expedite paying-off consumer debt, saving for large expenses like a wedding or a home, or just having extra “fun money” in the monthly budget.

With tech innovation revolutionizing how people eat, travel, shop, and more, it has never been easier to earn some extra money.

Over the past year, I generated an extra $200 – $1,000 per week and look forward to sustaining these extra earnings.

Defining the Gig Economy

A common characteristic of the gig economy is that gig economy jobs are organized though central marketplaces run by established brands.  These marketplaces connect service providers working as independent contractors to employers – sometimes for the duration of just a single task or gig.  The important distinction between gig economy projects and temp jobs is that a gig economy worker is always a freelancer and never an employee.

What is fascinating about so many companies hiring in the gig economy is how many of them don’t own the products or services themselves – they are merely the marketplace.  The following quote by Tom Goodwin summarizes this concept nicely:

“Uber, the world’s largest taxi company, owns no vehicles…. And Airbnb, the world’s largest accommodation provider, owns no real estate.  Something interesting is happening.”

Before delving into the gig economy, consider the key benefits and challenges.

Gig Economy Benefits

  • Flexibility 
    • You are your own boss. 
    • As a 1099 employee, there’s freedom and flexibility to choose when & where to work.
  • Unlimited earnings potential
    • No boss limiting or cutting hours, so the more you hustle, the more you make.
    • Opportunity to earn tips in addition to “base rate”.

Gig Economy Challenges

  • Inconsistent income 
    • “Slow days” & app issues can negatively impact earnings.
    • If you’re sick or unable to work, no money for you. 
    • An influx of gig workers can create more competition, resulting in less earnings opportunity.
  • No benefits
    • No severance pay, PTO days, sick days, maternity leave, healthcare, etc.
    • Vehicle maintenance & insurance not provided.

Despite the challenges, exploring gig opportunities is a great way to earn some extra money.

Ranking Gig Economy Side Hustles

With only a smart phone, reliable transportation, and a pleasant disposition, the following options can be quite lucrative:

1. Drop-Shipping

Sell products on Shopify, Amazon, Etsy, etc. and have a third party manufacture & ship the product directly to your consumer.

  • Pro: Little to no upfront costs since you don’t have to store or handle the inventory yourself
  • Con: Can take longer than 2-4 business days to arrive at the consumer & higher costs for consumer given third party delivery

2. Grocery Delivery

Deliver groceries with Instacart & Shipt.

  • Pro:  The more-complicated nature of being a full-service shopper compared to restaurant delivery means less competition & higher average earnings per order if you’re picky about accepting certain orders.
  • Con: Every store is different & can take a while to learn & be efficient, long checkout lines, vehicle maintenance & gas, the occasional very picky customer, store out-of-stocks can reduce earnings.

3. Vacation Rentals

Rent-out a spare bedroom or your entire home on VRBO and AIRBNB.

  • Pro:  Depending on your location and marketing prowess, this can be very lucrative, and some folks host their vacation rental full-time
  • Con:  Legal compliance, increased utility bills, random people in your house could damage, destroy, or steal items, and also, the occasional squatters! 

4. Miscellaneous Delivery

Deliver packages/ run errands for Amazon Flex & TaskRabbit.

  • Pro:  Relatively easy work – simply pick-up packages and deliver.
  • Con:  Vehicle maintenance & gas, delivering to apartments can be confusing and time consuming.

5. Specialized Skill Sharing

Sell your expertise with Fiverr.

  • Pro: You set your own rate for your expertise in photoshop, graphic design, translation, marketing etc.
  • Con: 20% revenue sharing with Fiverr, 14-day hold on funds, 60-day trial period to become a priority/ Level 1 Seller.

6. Teach English

Use your language skills to teach & speak with non-native English learners with VIPKid video calls.

  • Pro: Flexible schedule arranged 2 weeks in advance, no formal teaching experience required, you get to work with cute kiddos, VIPKid supplies the curriculum & students.
  • Con: Low pay relative to private tutoring.

7. Ride Share

Taxi folks around in your personal vehicle with Uber & Lyft.

  • Pro: Relatively easy work – simply pick-up riders and drop them off.
  • Con:  Vehicle maintenance, gas, and cleaning, destination not clear until passenger is retrieved, passenger uncertainty with head lice, COVID-19, or anything else.

8. Restaurant Food Delivery

Deliver food with DoorDash & UberEats.

  • Pro:  Relatively easy work – simply pick-up the food & drop it off.
  • Con:  Vehicle maintenance & gas, wait times for a delivery can be long, and if the restaurant messes up the food that you deliver, your rating & tips could be impacted.

Key Takeaway

While each of these options isn’t for everyone, getting started and finding what works with your interests and skill level can easily lead to $200 – $1,000 in extra income per week.

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