In the gig economy? 4 tips for freelancers and gig workers
If you’ve only got a minute:
- Money-ins and outs getting messy: Keep track using a money management tool – if you have DBS digibank it’s built in with customisable options
- Not all high interest accounts require salary crediting: There’s flexibility with the Multiplier Account
- Investing doesn’t need to start big or be a time-drain: Automate small investments starting from S$100 a month
- Stretch your dollar where it matters: Save on recurring expenses on essentials such as electricity bills
According to the Ministry of Manpower, 9.3% of all employed residents in Singapore are involved in the gig economy.
From private-hire drivers to freelancers, if you are in the gig economy and face income fluctuations, what can you do to be smart with your finances - to capitalise on the good times and last through the tougher ones?
With you in mind, we have designed a suite of tools and services to help meet your personal finance needs. Read on to uncover personal finance ‘hacks’ that are available right at your fingertips today.
1. Add a strength: Smart money management
If you are a gig worker, chances are you will be managing money inflows and outflows from clients and jobs on your own. Here’s a suggestion – keep track of your cashflow using a digital advisory tool which offers money management capabilities, among other things.
For existing DBS customers, you can do this right via the NAV Planner within your digibank app. Other than account balances and transactions, a lesser-known feature is the ability to categorise transactions for a customised reflection of your overall income and expenses even if they are not with DBS as well as to view the sources of your investments at one go! Simply head to the “Plan” tab.
And there’s more – from within the same digibank app, you’ll also receive personalised financial insights and suggestions and gain personalised financial insights and suggestions to empower you to make better financial decisions on the go. NAV Planner also helps navigate your financial journey through life to achieve financial wellness.
2. Grow your money – beyond saving – for rainy days
A common trait across the gig economy is the lack of stability at times. Thus, having sufficient savings will help in preparation for rainy days when new gigs are hard to come by.
In recognising the challenge of not having a fixed salary, we’ve enhanced the Multiplier Account so that there is no salary crediting required. That’s right, dividend income – any amount – works as well if you do not have a monthly salary crediting arrangement. You can earn this dividend income through any dividend yielding investments (e.g. Singapore Savings Bonds).
And that’s only the beginning. Use the benefits of this high interest savings account to your advantage and grow your savings at an accelerated rate as you check off other key components of your financial plan such as insurance, investments and home loan!
3. New side gig: Hassle-free investing
No time and money for investing? It’s a myth you need lots of both – you don’t! Invest affordably starting with S$100 a month into Exchange Traded Funds or Unit Trusts, made hassle-free with monthly deductions right from your bank account (a.k.a Regular Savings Plan). There’s no minimum lock-in period so you retain flexibility with DBS Invest-Saver.
Making these investments whenever you’re ready to do so – no matter how small – is an important part of your financial planning journey, so we’ve made it available right within your DBS digibank app.
4. Optimise your daily, essential spends
Getting more with less is a skill that anyone will find useful. After all, if you reduce your expenses, you can leave more money aside for other purposes such as saving or investing.
We’ve put together a few ways you can get more bang for your buck, especially from expenditure on essentials.
- We use electricity every day, perhaps even more so now with more devices coming into our lives and some of us working from home. Any savings on your electricity bill will not only mean more in your wallet, but when compounded with the effects of interest would greatly exceed annual savings of up to S$400. And it can be done easily with the DBS Electricity Marketplace.
- If you need a ride, simply book a taxi with the ComfortDelGro app and pay using DBS PayLah! to enjoy a discount. Check out the multitude of DBS PayLah! promotions – whether it is to book rides, pay for bills or enjoy cashback and other rewards, this is the app that can help you do it all.
- Let’s not forget the place you’re staying in! If you are thinking of getting a home or own one, any savings on such a long-term commitment add up. Paying less interest on your home loan also means you have more for your day-to-day spending.
Hustling as a gig worker requires you to be proactive, so there’s no excuses for you to start applying some of that energy in your personal financial planning. After all, our suite of services and tools are available right at your fingertips. Put these personal finance ‘hacks’ to work right away, right within your digibank app.
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Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.
All investments come with risks and you can lose money on your investment. Invest only if you understand and can monitor your investment. Diversify your investments and avoid investing a large portion of your money in a single product issuer.
Deposit Insurance Scheme
Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law. Monies and deposits denominated in Singapore dollars under the CPF Investment Scheme and CPF Retirement Sum Scheme are aggregated and separately insured up to S$75,000 for each depositor per Scheme member. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.