Top 5 Ways Your Contractors Can Manage Their Money Efficiently.

Let’s be honest, managing your finances is one of the least sexy parts of being a contractor. However, it’s the most critical if they want to succeed. We took the time to put together a few tips that you can pass along to your contractors that will help make this process a little easier for them.

1. An Emergency Fund.
Emergency funds can be lifesavers for contractors. Even more so than people with 9-to-5 jobs. If they don’t already have one or think theirs could use some help, tell them to start putting aside as much money as they can each month. They should target to save about $500 to start — this should help with minor emergencies.

2. Create a Budget.
As a contractor, your income varies, but your necessary expenses won’t. So it’s best if they are knowledgeable about how much money will be needed. This might be stressful for them but experts say they find this to be more comfortable than when the contractor’s held a traditional job because there is more time to focus on finances.

3. Learn When to Say No.
Most contractors usually want to take every opportunity to share their work with the world — and every chance to get paid for it — but they should try not to burn themselves out too much. They shouldn’t overwhelm themselves with assignments if they feel they are being stretched a little thin. It’s better for your business and the contractor.

4. Keep Detailed Records
This might seem like a no-brainer, but losing track of who paid you how much, for which assignment, on which date can get them into trouble come tax time. Tracking their contractor income and expenditures can simplify their quarterly tax payments and the process of filling out your Schedule C form. can help significantly here as we provide free Gig Wage accounts for contractors once paid via our platform.

5. Making a Plan to Tackle Their Debts.
Whether it’s sky-high student loan payments or a credit card balance, debt only looms larger when your paycheck isn’t steady. Prioritizing debt that are accounts carrying high interest should take precedence — and make paying each one down a part of their monthly budget.

‍Managing your money when you’re a contractor can be overwhelming, but once they get some practice, they can skillfully juggle their finances the same way they manipulate their clients aka you. Share these tips with your contractor workforce, they appreciate you for it.

Written by

Jarrod Ausborne

Chief Design Officer