One of the first things you learn in investing in that you should have a diversified portfolio. You may have heard something like “don’t put all your eggs in one basket.” That is, don’t put all your money in one stock, or one sector, or one type of investment even.
So why has it become the norm to do that with your income? On last Sunday’s radio show, we talked about the Art of the Side Hustle, and how side income has become more and more common these days as the concept of job security goes away and you find more comfort in working for yourself and building income streams you can control.
There is a new “gig” economy that is emerging with the rise of companies like Uber, Instacart, Task Rabbit, Fancy Hands, DogVacay, Etsy, AirBNB, the list goes on. What does this mean for you?
On the one hand, Uber is getting sued to reclassify their drivers as employees – technically they can work their own hours, but they must meet a whole host of other requirements to be an Uber driver. As contractors, they also don’t get the benefits of having an employer, like lower taxes, paid time off, and health insurance.
On the other hand, there’s a level of autonomy that comes with companies connecting people who need services with people who have them. It’s gotten easier than ever to monetize your skills and be able to create sources of short term income, work on a passion project, and not have to nod along when a potential employer asks if you plan to stay for the long term.
While this kind of freedom definitely comes with its own set of issues and fears, being able to take this kind of control of your income will also give you a sense of empowerment, ownership, and peace of mind that you’ll never have by just working for someone else.
I’d love to hear your thoughts – do you have a side hustle? Is it something you’ve been thinking about trying? What is holding you back? Do you like the direction the “gig” economy is going? Email me or leave a comment!