Managing GA gig worker income can be challenging, especially if you have multiple revenue streams from different side gigs. The good news is that even those with irregular income can achieve financial freedom as long as they have a plan they can stick to.

This guide from Georgia Auto Pawn, Inc. will outline some of the best tips for managing finances as a freelancer. We will also explain how independent workers facing unexpected financial emergencies can get the help they need with a title pawn in Georgia.

4 Cash Flow Tips For Freelance Financial Management

Working as a freelancer has become more popular with the rise of online freelancing platforms like Upwork and Fiverr. Inflation has increased living costs, but the average household income has not kept pace. People need to earn more, which leads them to take on side gigs in addition to their regular jobs.

Earning extra money can help offset increased costs, but managing multiple income streams can be difficult. Those new to freelance work may need guidance on how to handle their finances to maximize their earnings.

The following are four tips for managing your gig worker income:

1. Build a Financial Buffer

Of course, everyone needs an emergency fund, but independent workers might find it hard to get by without one. Make setting up a sizable financial safety net your top priority.

Freelancers often face income swings. Some months can be significantly worse than others. Sometimes, you might have no income at all, and that’s when an emergency fund can help you stay afloat. The optimal size of a rainy day’s bucket can vary from one person to another. As a rule of thumb, you’d want to have at least 3 months’ worth of expenses set aside.

To start an emergency fund, you should set aside about 20%-30% of your income. Ideally, create a savings account to deposit this money. The account should offer easy access so you can get the funds quickly if needed. Remember to only use the fund in actual emergencies and replenish it as soon as you can if you use some of the cash.

2. Learn To Budget For Irregular Income

Sticking to a budget can be difficult if you can’t predict exactly how much you'll earn each month. Your income can vary, leading to months when you earn much more than usual, but also lighter months with less money coming in. You need to learn how to budget for irregular income to handle the ups and downs of gig work.

Here’s a plan that should help you meet your financial obligations and potentially assist you in beginning to build a financial cushion:

• List out monthly expenses, including rent or mortgage, utilities, groceries, insurance, childcare, etc.
• Estimate monthly earnings based on the lowest amount you’ve made over the last six months
• Calculate your take-home pay after taxes and deductions
• Deduct monthly expenses from your net monthly income
• Make spending adjustments to afford your budget

Anything you earn above your baseline can certainly be spent on your ‘wants’. However, the most financially responsible choice is to use the extra cash to build your emergency fund or to contribute more to your retirement account.

3. Pay Extra Attention When Filing Taxes

One of the most important things to understand about freelance financial management is that independent workers must handle their own taxes. Your employers probably won’t deduct taxes for you. You need to learn how to set aside money for tax season on your own. Properly managing your taxes will not only help you avoid penalties but can also help you save money.

Here are a few things you need to know about managing freelance income for taxes:

• With most freelance income, you would have to report it on Form 1040 Schedule C
• You must pay federal, state income, Social Security, and Medicare taxes
• If you work for yourself, you have to pay estimated taxes 4 times a year (that is, in case you expect to owe over a thousand dollars in taxes this year)
• Research tax deductions for freelance workers to save money on taxes

4. Claim Work-Related Expenses

As a freelancer, you need to purchase your own equipment for your job. Since you don’t have an employer to cover these costs, you must pay for them yourself. However, you can deduct these expenses during tax season to reduce your taxable income.

For example, artists who sell their paintings can deduct the cost of their easels, brushes, paint, and other work-related supplies. Keep your receipts all year long so you know how much you've spent on these items. By claiming these expenses, you can reduce your taxes, and you might even get more money back on your tax return.

How To Cover An Emergency Expense As A Freelancer?

All the tips mentioned above take some time to become effective. If an unexpected emergency expense comes up and you’re still building your rainy day fund, you might want to consider a title pawn. Pawning your car title allows you to borrow emergency cash in less than one business day, as long as you have fully paid off your vehicle and own it outright.

If you need to urgently cover a medical bill or take care of an important house repair, our friendly company representatives would be happy to help. With our title pawns, you can qualify for up to $15,000 in only 30 minutes if you have all the required title pawn items.

You’ll need a government-issued photo ID, a lien-free vehicle title, and your vehicle for inspection. If you’re still making payments on your car, you won’t be able to qualify. If you are over 18 and your vehicle’s title has no liens attached to it, you might get the extra cash in the shortest timeframe.

Here is the process for getting approved for a title pawn in Georgia:

• Submit your basic information through our online inquiry form
• Answer a phone call to discuss next steps with a loan specialist
• Visit a Georgia loan store location with your required items
• Get your requirements verified and your vehicle inspected
• If approved, you can sign a loan agreement to finish the process
• Receive your title pawn funds later that day or by the next business day

Get Approved For A Title Pawn In Georgia – Borrow Up To $15,000 Today!

With Georgia Auto Pawn, Inc., the title pawn approval process becomes simple. Get approved for emergency cash today to manage your urgent expenses. When you face a tough freelance month, we can assist with our quick-approval loans. We accept borrowers with bad credit, and you get to keep your car after getting approved.

Get started today—submit your information through our online form, and we will call you to explain how you can get approved in person in less than 30 minutes.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.