Tips for Freelancers in the Gig Economy

Post-pandemic, South Africa has seen more and more people working from home. In fact, there has even been an increase in freelancers entering the gig economy. As of 2025, the projected number of freelancers in the country is estimated to be two million.

Fuelled by unavoidable retrenchments, economic instability and more individuals seeking improved work-life balance, the gig economy has fired up in recent years. Borrowed from the entertainment industry, this term “gig economy” refers to the labour market replacing permanent jobs with short-term contracts that enable these freelancers to have more flexibility over their working hours.

From the employers’ perspective, the employment market relies on the skills and services of freelance contractors to fill temporary vacancies. The entire industry is made possible by various online platforms and technologies, from Fiverr and LinkedIn to obtain jobs, to Zoom and project management tools. It allows freelancers to access a global pool of opportunities, and businesses to access a global pool of talent.

Good Choices for Surviving in the Gig Economy

Understandably, freelancing offers access to a broader range of opportunities to earn money, be self-employed, and have more flexibility at work. But there are vital tips that you need to keep in mind throughout your freelance career.

• Verify all jobs.
• Only look for jobs that match your skills
• Ensure that they have good communication skills.
• Improve your knowledge of technologies that will help you as a freelancer.
• Discuss timeframes and expected deliverables upfront for clarity.
• Draw up contract agreements for every job.
• Charge a 50% fee upfront as a deposit to help mitigate non-payment.

For more practical advice to keep your work life organised, it is important to plan well, especially given the sway between well-paying projects and securing a steady stream of income.

You will need to develop your entrepreneurial mindset so you can spot opportunities ahead of time and network for future opportunities. You will also need to understand how to market yourself to your ideal client.

It’s recommended that you focus on a field where your expertise is in high demand, as this will allow you to request higher rates.

Another important skill to hone is record-keeping. This includes tracking your income and expenses accurately, as well as keeping track of all the projects you are working on.

Lastly, if you don’t already have a dedicated area in your house to work, then you need to establish one. This helps you separate your work and personal life.

Financial Tips for the Gig Economy

Contractors and freelancers need to take special care of their finances. Here are some tips:

Stick to Your Budget

Gigs are not one solid stream of income. That’s why you need to establish a baseline for your monthly income and expenses and create a budget around it. Next, you need to stick to your budget.

Track your Income

By tracking your income, you will be able to identify when months have historically been tighter than others, and also when it might be time to expand your business when it starts booming.

Plan for Taxes and Retirement

Self-employment means that deductions that are usually taken from your salary must now be taken care of by you. Ensure you keep funds for income tax purposes aside, and invest money for your pension.

Protect your Credit Score

It is important to protect your credit score when you are self-employed. Make sure to pay your bills on time, not create too much debt, and keep your financial goals in mind.

Stay On Top of Your Finances

The best way to stay on top of your financial situation is to ensure that you are intimately familiar with what goes on in your financial life. This means that you must know at all times what debit orders you have, what your investments are and how much debt you are accumulating each month.

It takes a certain type of personality to make freelancing in the gig economy work. It might be tough to start out, but by following the tips outlined in this article, you should be able to make your micro-enterprise a success.