Gigging Cash Flow

 

Key Takeaways 

  • The rise of the gig economy has helped people build multiple streams of income.
  • People choose to take on gig jobs for many different reasons, but it’s a great option to help pay down debt, save more, or earn some extra spending money.
  • There are pros and cons to a gig job, to include being self-employed with the freedom that entails, to the associated taxes that come with that status.

Leveraging Your Cash Flow

Key Takeaways

  • Using Other People’s Money (OPM) comes in to play in things like a matching 401(k) where an employer is matching their money to yours to put away for your retirement.
  • There are three leveraging tools in a 401(k): Other People’s Money, pre-tax savings, and tax deferment.
  • If your employer offers a matching 401(k), you will save more money for retirement in the long term than you would saving money on your own.

Balanced Cash Flow – Enjoyment Now or Later?

Key Takeaways

  • Balancing your cash flow is about enjoyment now versus later.
  • This is a subjective arena, but if you look at an objective case study, you can see that it is possible to either save now or later with the same end result.
  • There are two caveats to either spending now or later; you have to consider how you would adjust to taking a cut on your spending habits, and you have to think about how your long-term health affects your plan.

Financial Freedom –Looking Long-Term For Short-Term Flexibility

Key Takeaways

  • To have financial freedom, you must look long-term to achieve short-term financial flexibility and financial freedom.
  • The two key areas to look at for short-term flexibility are expenses and savings.
  • The two largest areas of expenses are in housing and transportation.
  • Save 10% of your income and contribute at least the minimum to get the match on a 401K to ensure you have enough savings to cover emergencies or career moves.