Have a Side Hustle? You Need These Banking Tools to Get Paid
Here are the banking tools anyone with a side hustle needs.
If you work a side hustle — such as driving for a ride-share company or using your bike to deliver gas station snacks to hungry college students — then congratulations, you are one of a growing number of Americans to participate in the gig economy.
Whether you're selling homemade baked goods or candles on the side to supplement your income or boost your savings, it's crucial you have the requisite banking tools to be paid. Cash rules everything around you, so take the time to ensure that you're equipped with the banking accounts and services needed to support your financial endeavors.
Side hustles becoming more common
The rise of flexible, short-term employment and apps have driven some 36% of the workforce to join the gig economy, according to Gallup. That's more than one-third of workers who may drive for Uber or freelance through TaskRabbit.
For the majority of these individuals, making more money is the No. 1 goal. A BMO Harris survey found "making extra money on the side" was the top reason that respondents joined the gig economy; this was true across all generations except for one, baby boomers.
The financial needs of the gig worker
While the gig economy offers freedom and a chance to pursue passions, such work may come with less of a safety net. Younger workers may also lack traditional banking tools because they never needed to set up a checking account to receive direct deposits from payroll.
Without the right tools, gig workers may find it complicated to actually get paid: never a good thing. Here is a starting point for those with a side hustle
1. Checking account with mobile deposit
A checking account is essential to personal finances. It's often the central account through which income is deposited and expenses are withdrawn. And there's no need for millennial or Gen Z workers to keep a ledger: Online banking can easily help them keep track of finances in real time. It's as simple as checking your balance from a smart phone between parcel deliveries.
Get paid with a check after babysitting or assembling someone's furniture? A checking account with mobile deposit means never having to take a detour to the nearest branch, which saves crucial time.
2. Savings account with no minimum balance
Many work a side hustle to put away extra funds. Saving for the future is prudent financial sense, but money is doing you no good if it all sits in a checking account, where it doesn't earn interest. Funds stashed in a savings account, on the other hand, will accrue compounded interest, which puts your money to work for you!
One thing to look for in a savings account is no requirement for a minimum balance. Gig workers may have fluid financial situations, so finding an account that offers similar flexibility is highly important.
3. Online bill pay
Everyone has expenses. Sometimes it can be difficult to keep track of all of them, especially with the hectic life of a gig worker. Don't let a late or missed payment come back to bite you with online bill pay. This handy tool can schedule due dates and automatically transfer money to make sure bills are paid on time, every time. You'll never have to worry about a surprise late fee taking a bite out of expected profits.
Furthermore, many companies — whether lenders or utilities — will offer a discount if you enroll in automated bill pay. Plus, this tool is often available free of charge to individuals who already have a checking account.
Getting established with these banking tools is a first step for anybody with a side hustle. If you want to learn more about these banking products, contact your local Vectra Bank rep today.