As a rideshare or delivery driver, or an independent transport worker or any other sole trader, it is possible to not take up the risk of investing and we understand. But saving up and ‘storing’ the money will make it idle.
Why is that bad for your banking habit?
- Interest paid by bank for savings is three times lower than all other investment options
- Often banks would charge annual fees for maintenance of your savings account and other applied charges
- A large part of your income will have to be kept aside whenever you wish to maximize your savings goals
- While your rate of return and saving remains same the tax rate levied on the amount you are earning per year from the savings may increase
- You could be diminishing your own savings potential
What is the difference between ‘easy money’ and ‘smart money’ ?
The feeling of doubt that all self-employed workers would have before deciding how to make best use of their money is justifiable, this is the intuition that has helped you budget all along.
The idea of ‘easy money’ gives rise to a lot of questions, the very first being if it is safe and legal. But making your money grow more effectively does not have to mean that you are obtaining it unlawfully. There are several ways of ‘smart savings’.
‘Smart money’ is value driven, helps you make the best use of your expenses and is risk free.
4 risk free ways to make money from your savings
Certificates of Deposits
If you have long-term savings goals and do not have a problem with consistently putting in your money without the need to withdraw at convenience then the Negotiable Certificates of Deposits are the best available option.
You can choose a specific maturity period for your certificates of deposits, make a one time deposit or create instalments for the amount, sit back and enjoy a higher, risk free interest rate than other savings account options!
The interest rate at which you booked your certificates is not subjected to change by external matters like market price or demand. This is both smart and sure money.
Try out high reward checking accounts
Self-employed individuals often find it difficult to manage their personal and business expenses separately. Getting a checking account with minimum fee and real-time rewards can be an awesome opportunity to be more professional about your business finances!
Some banks offer as much as $4000 worth withdrawable or usable rewards for first time account holders and you can then use this money to grow your business savings.
Take up a savings insurance plan
If you have records of a consistent income over a period of 24 months or more the easiest, safest and surest way to double your savings in a limited time is to invest in a savings insurance plan.
Instead of storing your money in your personal savings account your bank circulates the amount every month or quarter in equity and debt funds to create capital.
You then gain the same interest on the capital with very low risk since you are not directly investing into funds and your savings investment is handled by a professional banking institution.
Check out annuity funds
Best suitable for rideshare or transport workers who have been working in the industry for a long time and would like to retire, annuity or super annuity funds allow you to grow your savings with a consistent return rate after you retire.
This way you keep the opportunity of income open even after you have stopped working and your savings are kept safe.
This will require that you have saved up a substantial amount of money upon which the rate of return can be applied monthly and you will receive money that is roughly equal to your previous income while you were working.
Here’s where you can find the best advice on safe investments:
Track your investments
You could fix and forget but keeping a tab on your savings goal will make sure:
- All of your instalments are being paid timely
- You have substantial records of income from your savings for tax purposes
- You are encouraged to keep earning more
- You can budget your short term and long term goals accordingly
All users on the MyGigsters app love the feature of auto-tracking mileage, income and savings goals. You can even make it work as your expense manager to separate and organize your personal and business expenses!
The app makes your gig work for you! Get it today and set on the best personalized financial journey ever.