Millennial Money Takes

Is the Gig economy helping or hurting our finances?

The Gig Economy and its Impact on Personal Finance

The gig economy, characterized by freelance and contract work, has been on the rise in recent years, and has particularly appealed to millennials seeking flexibility and autonomy in their careers. However, while the gig economy offers a number of benefits, it also presents unique financial challenges that individuals must be prepared to navigate.

One of the biggest challenges facing gig workers is the lack of a steady income. Unlike traditional employment, gig work often lacks the stability of a steady paycheck, and can lead to fluctuations in income that can be difficult to manage. This can result in an inability to budget and plan for expenses, leading to financial stress and even debt.

Another issue for gig workers is the absence of benefits such as health insurance and retirement plans that are typically offered by traditional employers. This can result in gig workers having to pay for these benefits out of pocket, which can add up and have a significant impact on their overall finances. Additionally, gig workers may also be required to pay for their own equipment and supplies, which can further strain their finances.

To mitigate these financial challenges, gig workers must be proactive in managing their finances. This can include creating a budget, setting aside money for taxes, and investing in retirement plans. They may also want to consider purchasing insurance to protect against unexpected costs and to ensure that they have access to healthcare.

Another important step for gig workers is to diversify their income streams. This can help to reduce the impact of fluctuations in income and ensure that they have a steady stream of cash flow. For example, gig workers can take on multiple freelance or contract jobs, or consider starting their own business or side hustle.

The gig economy has also raised concerns about worker protections, including those related to job security, overtime pay, and worker’s compensation. These concerns highlight the need for the government to step in and provide regulations and protections for gig workers, similar to those offered to traditional employees. This can include offering tax incentives for gig workers, and implementing policies that ensure that gig workers receive fair pay and benefits.

However, not everyone is convinced that the gig economy is a positive development for workers. Some critics argue that the gig economy exploits workers by denying them benefits and protections, and taking advantage of their lack of job security. Additionally, there are concerns that the gig economy is contributing to the decline of traditional employment, and that it is widening the income inequality gap.

Despite these challenges, the gig economy is here to stay, and it is up to individuals to take control of their finances and manage the unique financial challenges that come with it. By being proactive and taking the necessary steps to manage their finances, gig workers can not only thrive in the gig economy, but also achieve financial stability and security.

In conclusion, the gig economy presents both opportunities and challenges for individuals seeking flexibility and autonomy in their careers. While the lack of a steady income and benefits can present financial difficulties, individuals can take control of their finances by being proactive, diversifying their income streams, and investing in insurance and retirement plans. It is up to the government to provide regulations and protections for gig workers, ensuring that they receive fair pay and benefits. As the gig economy continues to grow, it is important for finance professionals and gig workers alike to be informed and prepared to navigate the unique financial challenges that come with it.

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Mental Health In the Work place

The Importance of Mental Health in the Workplace

Mental health is a crucial aspect of overall well-being that has often been neglected in the workplace. In the fast-paced and demanding work environment of today, employees are facing increasing levels of stress and burnout, which can have severe consequences for both their personal and professional lives. As a result, the importance of addressing mental health in the workplace has become a debatable topic among millennials, who are the largest generation in the workforce.

Mental health issues, such as anxiety, depression, and burnout, can significantly impact an individual’s ability to perform their job effectively. In extreme cases, it can lead to absenteeism, decreased productivity, and increased healthcare costs. The World Health Organization (WHO) estimates that depression and anxiety disorders cost the global economy $1 trillion annually in lost productivity.

Moreover, the impact of poor mental health in the workplace goes beyond the individual level. It can also harm the overall morale and atmosphere of a workplace, affecting colleagues and the company’s bottom line. A study by the Mental Health Foundation found that 70% of UK employees reported that stress had affected their performance at work, while over half of those surveyed said they had taken a day off as a result of stress.

Given the importance of mental health in the workplace, companies should make it a priority to create a supportive and inclusive environment. This can be done through various measures, such as offering mental health support and resources, promoting work-life balance, and addressing toxic work cultures.

One effective way to promote mental well-being in the workplace is to provide access to mental health resources and support. This can include offering Employee Assistance Programs (EAPs), which provide confidential counseling services, as well as promoting mental health awareness and education. Employers can also encourage their employees to take time off when they need it and create flexible work arrangements that allow for a better work-life balance.

Another important aspect of addressing mental health in the workplace is to tackle toxic work cultures that can contribute to stress and burnout. This can include addressing bullying and harassment, fostering a positive and inclusive work environment, and promoting open and honest communication. By creating a supportive and positive work culture, employees are more likely to feel valued and engaged, leading to higher levels of job satisfaction and productivity.

Despite the benefits of addressing mental health in the workplace, many companies are still reluctant to invest in these initiatives. This may be due to a lack of understanding about the impact of mental health on the workplace or a perception that it is not a priority. However, as the millennial generation continues to drive change in the workplace, the importance of mental health is becoming increasingly recognized, and companies are starting to take notice.

In conclusion, mental health is a critical issue in the workplace that must be addressed to promote overall well-being and productivity. From offering mental health support and resources to tackling toxic work cultures, companies have a crucial role to play in creating a supportive and inclusive work environment. By addressing mental health in the workplace, employers can not only benefit their employees, but also the company’s bottom line. As the largest generation in the workforce, millennials are driving the conversation on mental health and it’s time for companies to take action.

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Top 5 credit cards For Cash back

Photo by Andrea Piacquadio on Pexels.com

here are my top 5 picks for cash back credit cards:

Chase Freedom Unlimited: This card offers 1.5% cash back on all purchases, with no annual fee.
- Citi Double Cash Card: With this card, you’ll earn 1% cash back on all purchases, and an additional 1% cash back when you pay off those purchases.
Discover it Cash Back: This card offers 5% cash back on rotating categories that change each quarter, and 1% cash back on all other purchases. Plus, at the end of your first year as a cardholder, Discover will match all the cash back you’ve earned.
Blue Cash Preferred Card from American Express: With this card, you’ll earn 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on other purchases. There is an annual fee of $95.
Capital One Quicksilver Cash Rewards Credit Card: This card offers a flat 1.5% cash back on all purchases, with no annual fee.

It’s worth noting that credit cards are not suitable for everyone and it’s always better to check the terms and conditions and fees associated before making a decision.

If you have Bad credit/trying to rebuild, or if you just don’t want the temptation of having more money you can spend than you actually have. I would look into a secured credit card.

A secured credit card is a type of credit card that requires a cash deposit as collateral. This deposit acts as a security for the credit card issuer, as it can be used to pay off any outstanding balances in the event that the cardholder defaults on their payments. Having a secured credit card can be beneficial for a number of reasons. Firstly, it allows individuals with little or no credit history to establish credit. Since the deposit acts as collateral, credit card issuers are more likely to approve individuals for a secured credit card, even if they have poor credit. Secondly, using a secured credit card responsibly can help individuals improve their credit score over time. As the cardholder makes on-time payments and keeps their balances low, the credit card issuer will report this positive activity to the credit bureaus, which can lead to an increase in the individual’s credit score. Additionally, having a secured credit card can also serve as a stepping stone to obtaining an unsecured credit card in the future.

It’s important to note that secured credit cards often come with high fees and interest rates, so it’s important to compare offers and select a card with a low annual fee and a reasonable interest rate. Also, it’s important to make sure the issuer reports to credit bureaus and to use the card responsibly by making payments on time and keeping the balance low.

Getting out of debt

Before we dive into getting rid of debt id like to start off by clarifying that not all debt is bad debt. Throughout the years of American history there has been a black cloud of personal finance in the American household. Have you ever heard that money is taught in the home? We don’t teach children as a society how money is created, or how interest rates will affect borrowing power. Essentially when I graduated high school in 2012 I felt immense pressure to go to college, essentially taking out high interest loans I didn’t understand for an education I didn’t really need, going into a world I wasn’t even close to prepared for. Naturally by 20 years old like a staggering amount of young adults in this country I had defaulted on my student loans and dropped out of a college I shouldn’t have gone to in the first place. I had a 480 credit score no job and know 20k worth of student loan debt. There is only one thing to do if you find yourself in this situation, GO TO WORK/ CREATE INCOME. You need income. Find the highest paying job for the least amount of time, put your head down and go to work. at one point in my career I was doing (preload) at ups going into work at midnight working until 9am and then landscaping. My ups checks were getting garnished meaning my 250$ a week part time job was only 150$. I had to literally dig my way out of that situation solely through time and work. it took me about 5-7 years for my credit to recover. For someone to be wealthy I truly believe they need to understand how money works. Its all debt. So it is vital to be able to identify Bad debt from cash flowing debt. for example your credit cards with 20-25% variable interest that you carry a balance on every month is very bad debt. The 4 unit apartment complex your uncle Jim bought and rents out is cash flowing debt. The difference is easy one debt costs you money and the other makes you money. Maybe I wasn’t paying attention in school but nobody told me anything about debt really… good or bad. charts because money is taught in the home, and the less you have the less you know. Wealth is knowledge and the first step in this pivotal personal finance journey we all go down is being able to get yourself on a budget, identify how, (where, what, when) you are spending money and then identify wants and needs. For example if you are on amazon every night when you get home from work buying new gadgets those are probably wants. Food, housing, transportation, all examples of needs. We can go further into breaking down what you actually need for food, you don’t need to be paying uber eats or door dash 10$-15$ in fees for a McDonalds quarter pounder meal. Im not saying you need to peanut butter and jelly 3 times a day but if you really want to take control of your finances you need to be aware of how, when, and why you are spending money. Money is debt, every dollar is circulation is owed to someone else. Using debt to build wealth has been used for centuries. Understanding the difference between consumer debt, and debt/ leverage used to buy appreciating assets that will cash flow was a pivotal step in my own learning curve for personal wealth building. If you find yourself in a situation where you have multiple credit cards with thousands of dollars collecting interest every month while you just struggle to make it to the next paycheck. Consider these options… Avalanche method. The avalanche method focuses on your highest interest loans first while still making minimum payments on all other monthly debt obligations. Making extra payments on the loans that carry higher balances combined with high interest would be especially useful for this method.

The opposite but still very useful method is the Snowball Method. Ive used both the Avalanche method of paying off debt as well as the Snowball there is no right or wrong way to putting yourself into a better personal finance situation. The snowball method worked more effectively for me because I could see more progress faster. I paid off my lowest balance and essentially gained momentum into the next lowest balance, I made it like a game. How fast could I play this debt off? How much money could I save this month? I became motivated because I saw progress sooner. Personal finance is personal… literally whatever works for you personally, roll with that. Both of these methods have proved helpful not only to me but thousands of other like minded individuals.

Another popular strategy for eliminating bad debt for your life, is debt consolidation. At this point in my life I haven never used a loan like this, I have done extensive research on how and why they would be beneficial in your situation. A debt consolidation loan Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others, the only situation I would see this being beneficial is if you were in a really tough situation with a lot of high interest debt and it would be impossible to come back or get ahead if you will. You generally need decent credit (689) to qualify for these types of loans. By the time most people would need this type of loan they generally don’t qualify for it. A very sad truth that I’ve read countless times again. More and more Young adults find themselves in crippling consumer debt I’ve read stories of 25-26yr olds with 120k credit card debt with interest rates averaging 24%!! If you find yourself in this situation and you can’t get a consolidation loan I think the only other option it too consider bankruptcy. The absolute worst thing we can do if we’re trying to get out of debt is pretending it docent exist. The worst thing we can do is be blissfully ignorant when it comes to OUR OWN finances…