Everything You Need to Know About Budgeting As a Freelancer

Could logging in to your computer from a deluxe treehouse off the coast of Belize be the future of work? Maybe. For many, the word freelance means flexibility, meaningful tasks and better work-life balance. Who doesn’t want to create their own hours, love what they do and work from wherever they want? Freelancing can provide all of that—but that freedom can vanish quickly if you don’t handle your expenses correctly.

“A lot of the time, you don’t know about these expenses until you are in the trenches,” says freelance copywriter Alyssa Goulet, “and that can wreak havoc on your financial situation.”

Nearly 57 million people in the U.S. freelanced, or were self-employed, in 2019, according to Upwork, a global freelancing platform. Freelancing is also increasingly becoming a long-term career choice, with the percentage of freelancers who freelance full-time increasing from 17 percent in 2014 to 28 percent in 2019, according to Upwork. But for all its virtues, the cost of being freelance can carry some serious sticker shock.

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“There are many hats you have to wear and expenses you have to take on, but for that you’re gaining a lot of opportunity and flexibility in your life.”

– Alyssa Goulet, freelance copywriter

Most people who freelance for the first time don’t realize that everything—from taxes to office supplies to setting up retirement plans—is on them. So, before you can sustain yourself through self-employment, you need to answer a very important question: “Are you financially ready to freelance?”

What you’ll find is that budgeting as a freelancer can be entirely manageable if you plan for the following key costs. Let’s start with one of the most perplexing—taxes:

1. Taxes: New rules when working on your own

First things first: Don’t try to be a hero. When determining how to budget as a freelancer and how to manage your taxes as a freelancer, you’ll want to consult with a financial adviser or tax professional for guidance. A tax expert can help you figure out what makes sense for your personal and business situation.

For instance, just like a regular employee, you will owe federal income taxes, as well as Social Security and Medicare taxes. When you’re employed at a regular job, you and your employer each pay half of these taxes from your income, according to the IRS. But when you’re self-employed (earning more than $400 a year in net income), you’re expected to file and pay these expenses yourself, the IRS says. And if you think you will owe more than $1,000 in taxes for a given year, you may need to file estimated quarterly taxes, the IRS also says.

That can feel like a heavy hit when you’re not used to planning for these costs. “If you’ve been on a salary, you don’t think about taxes really. You think about the take-home pay. With freelance, everything is take-home pay,” says Susan Lee, CFP®, tax preparer and founder of FreelanceTaxation.com.

When learning how to budget as a freelancer it’s necessary to estimate your income and expenses before setting aside savings for tax payments.

When you’re starting to budget as a freelancer and determining how often you will need to file, Lee recommends doing a “dummy return,” which is an estimation of your self-employment income and expenses for the year. You can come up with this number by looking at past assignments, industry standards and future projections for your work, which freelancer Goulet finds valuable.

“Since I don’t have a salary or a fixed number of hours worked per month, I determine the tax bracket I’m most likely to fall into by taking my projected monthly income and multiplying it by 12,” Goulet says. “If I experience a big income jump because of a new contract, I redo that calculation.”

After you estimate your income, learning how to budget as a freelancer means working to determine how much to set aside for your tax payments. Lee, for example, recommends saving about 25 percent of your income for paying your income tax and self-employment tax (which funds your Medicare and Social Security). But once you subtract your business expenses from your freelance income, you may not have to pay that entire amount, according to Lee. Deductible expenses can include the mileage you use to get from one appointment to another, office supplies and maintenance and fees for a coworking space, according to Lee. The income left over will be your taxable income.

Pro Tip:

To set aside the taxes you will need to pay, adjust your estimates often and always round up. “Let’s say in one month a freelancer determines she would owe $1,400 in tax. I’d put away $1,500,” Goulet says.

2. Business expenses: Get a handle on two big areas

The truth is, the cost of being freelance varies from person to person. Some freelancers are happy to work from their kitchen tables, while others need a dedicated workspace. Your freelance costs also change as you add new tools to your business arsenal. Here are two categories you’ll always need to account for when budgeting as a freelancer:

Your workspace

Joining a coworking space gets you out of the house and allows you to establish the camaraderie you may miss when you work alone. When you’re calculating the cost of being freelance, note that coworking spaces may charge membership dues ranging from $20 for a day pass to hundreds of dollars a month for a dedicated desk or private office. While coworking spaces are all the rage, you can still rent a traditional office for several hundred dollars a month or more, but this fee usually doesn’t include community aspects or other membership perks.

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If you want to avoid office rent or dues as costs of being freelance but don’t want the kitchen table to pull double-duty as your workspace, you might convert another room in your home into an office. But you’ll still need to outfit the space with all of your work essentials. Freelance copywriter and content strategist Amy Hardison retrofitted part of her house into a simple office. “I got a standing desk, a keyboard, one of those adjustable stands for my computer and a squishy mat to stand on so my feet don’t hurt,” Hardison says.

Pro Tip:

Start with the absolute necessities. When Hardison first launched her freelance career, she purchased a laptop for $299. She worked out of a coworking space and used its office supplies before creating her own workspace at home.

Digital tools

There are a range of digital tools, including business and accounting software, that can help with the majority of your business functions. A big benefit is the time they can save you that is better spent marketing to clients or producing great work.

The software can also help you avoid financial lapses as you’re managing the costs of being freelance. Hardison’s freelance business had ramped up to a point where a manual process was costing her money, so using an invoicing software became a no-brainer. “I was sending people attached document invoices for a while and keeping track of them in a spreadsheet,” Hardison says. “And then I lost a few of them and I just thought, ‘Oh, my God, I can’t be losing things. This is my income!’”

As you manage the cost of being freelance, consider digital tools and accounting services to keep track of invoices, payments and income.

Digital business and software tools can help manage scheduling, web hosting, accounting, audio/video conference and other functions. When you’re determining how to budget as a freelancer, note that the costs for these services depend largely on your needs. For instance, several invoicing platforms offer options for as low as $9 per month, though the cost increases the more clients you add to your account. Accounting services also scale up based on the features you want and how many clients you’re tracking, but you can find reputable platforms for as little as $5 a month.

Pro Tip:

When you sign up for a service, start with the “freemium” version, in which the first tier of service is always free, Hardison says. Once you have enough clients to warrant the expense, upgrade to the paid level with the lowest cost. Gradually adding services will keep your expenses proportionate to your income.

3. Health insurance: Harnessing an inevitable cost

Budgeting for healthcare costs can be one of the biggest hurdles to self-employment and successfully learning how to budget as a freelancer. In the first half of the 2020 open enrollment period, the average monthly premium under the Affordable Care Act (ACA) for those who do not receive federal subsidies—or a reduced premium based on income—was $456 for individuals and $1,134 for families, according to eHealth, a private online marketplace for health insurance.

“Buying insurance is really protecting against that catastrophic event that is not likely to happen. But if it does, it could throw everything else in your plan into a complete tailspin,” says Stephen Gunter, CFP®, at Bridgeworth Financial.

Budgeting as a freelancer allows you to select a healthcare plan that best suits your employment status, income and relationship status.

A good place to start when budgeting as a freelancer is knowing what healthcare costs you should budget for. Your premium—which is how much you pay each month to have your insurance—is a key cost. Note that the plans with the lowest premiums aren’t always the most affordable. For instance, if you choose a high-deductible policy you may pay less in premiums, but if you have a claim, you may pay more at the time you or your covered family member’s health situation arises.

When you are budgeting as a freelancer, the ACA healthcare marketplace is one place to look for a plan. Here are a few other options:

  • Spouse or domestic partner’s plan: If your spouse or domestic partner has health insurance through his/her employer, you may be able to get coverage under their plan.
  • COBRA: If you recently left your full-time job for self-employment, you may be able to convert your employer’s group plan into an individual COBRA plan. Note that this type of plan comes with a high expense and coverage limit of 18 months.
  • Organizations for freelancers: Search online for organizations that promote the interests of independent workers. Depending on your specific situation, you may find options for health insurance plans that fit your needs.

Pro Tip:

Speak with an insurance adviser who can help you figure out which plans are best for your health needs and your budget. An adviser may be willing to do a free consultation, allowing you to gather important information before making a financial commitment.

4. Retirement savings: Learn to “set it and forget it”

Part of learning how to budget as a freelancer is thinking long term, which includes saving for retirement. That may seem daunting when you’re wrangling new business expenses, but Gunter says saving for the future is a big part of budgeting as a freelancer.

“It’s kind of the miracle of compound interest. The sooner we can get it invested, the sooner we can get it saving,” Gunter says.

He suggests going into autopilot and setting aside whatever you would have contributed to an employer’s 401(k) plan. One way to do this might be setting up an automatic transfer to your savings or retirement account. “So, if you would have put in 3 percent [of your income] each month, commit to saving that 3 percent on your own,” Gunter says. The Discover IRA Certificate of Deposit (IRA CD) could be a good fit for helping you enjoy guaranteed returns in retirement by contributing after-tax (Roth IRA CD) or pre-tax (traditional IRA CD) dollars from your income now.

Pro Tip:

Prioritize retirement savings every month, not just when you feel flush. “Saying, ‘I’ll save whatever is left over’ isn’t a savings plan, because whatever is left over at the end of the month is usually zero,” Gunter says.

5. Continually update your rates

One of the best things you can do for yourself in learning how to budget as a freelancer is build your costs into what you charge. “As I’ve discovered more business expenses, I definitely take those into account as I’m determining what my rates are,” Goulet says. She notes that freelancers sometimes feel guilty for building business costs into their rates, especially when they’re worried about the fees they charge to begin with. But working the costs of being freelance into your rates is essential to building a thriving freelance career. You should annually evaluate the rates you charge.

Because your expenses will change over time, it’s wise to do quarterly and yearly check-ins to assess your income and costs and see if there are processes you can automate to save time and money.

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“A lot of the time, you don’t know about these expenses until you are in the trenches, and that can wreak havoc on your financial situation.”

– Alyssa Goulet, freelance copywriter

Have confidence in your freelance career

Accounting for the various costs of being freelance makes for a more successful and sustainable freelance career. It also helps ensure that those who are self-employed achieve financial stability in their personal lives and their businesses.

“There are many hats you have to wear and expenses you have to take on,” Goulet says. “But for that, you’re gaining a lot of opportunity and flexibility in your life.”

The post Everything You Need to Know About Budgeting As a Freelancer appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

Planning a Home Office? Check Out These Budget-Friendly Tips

Working from home has its perks. There’s the money saved from skipping the commute, and just think about all of that time you get back by avoiding crowded freeways or public transit during rush hour. As far as workplace attire goes, few employees would trade “work-from-home casual” for dress slacks.

But while working from home affords some new freedoms, it also creates new challenges. One of your biggest tasks is to create a productive, ergonomically correct workplace in your home without breaking the bank. If this sounds familiar, you’re probably asking yourself, “How can I set up a home office on a budget?”

Whether you’ve always worked from home as a freelancer or started during the pandemic, these expert tips will help you get started as you design your home office on a budget:

From finding the right location to choosing the ideal furniture, these tips will help you create your home office on a budget.

Strive for an ergonomically correct home office

Being home all day creates an unexpected obstacle: pain. Many workers find that transitioning from a well-equipped office to a makeshift setup at home leads to discomfort. That’s because many of them go from having a spacious desk, comfortable chair, and monitor and keyboard in their office building to working from a laptop in their living room.

If you suffer from neck pain or eye strain when working from home, you may be feeling the effects of poor ergonomics. Ergonomics, commonly known as the science of work, aims to optimize productivity and health in a workspace.

As a physical therapist with more than 25 years of experience, Karen Loesing, owner of The Ergonomic Expert, knows this issue all too well. Loesing’s company performs ergonomic assessments for businesses and home offices. Over the years, she has seen countless clients suffering from neck, back or other health issues due to poorly designed workspaces. But it doesn’t have to be that way, Loesing says.

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“Having an ergonomically correct workstation enhances productivity and generally overall happiness at work.”

– Karen Loesing, owner of The Ergonomic Expert

There are relatively easy ways to transform an ergonomic nightmare into a well-functioning home office on a budget—even if you’re stationed at the kitchen table, she says. And the investment is worth it.

“Having an ergonomically correct workstation enhances productivity and generally overall happiness at work,” Loesing says. “For those who are able to designate a certain space in their home where they can work without distractions—maybe even a window with a view and the flexibility to work at your own pace—it has been proven this makes for a happier employee.”

Who doesn’t want to boost their health, productivity and happiness in one fell swoop?

Find the optimal location for your at-home workspace

When setting up a home office for remote work, location should be your first decision, says design consultant Linda Varone, author of “The Smarter Home Office.” Depending on your living situation, there may be an obvious answer, such as that spare room you’ve always thought could become an office space.

If you don’t have a dedicated office, don’t despair. While you design your home office on a budget, think creatively about where it can be.

Varone once visited a client’s home to help reconfigure her workspace. The client was running a business from a table in the hallway. “At the end of each workday, she had to pack everything up and store it in the closet in the guest room,” Varone says.

But as Varone learned, guests only stayed over two weeks a year, leaving the room empty the rest of the time. It hadn’t occurred to the business owner, but turning the guest room into a home office for most of the year was the perfect solution.

If you’re setting up a home office for remote work, picking the optimal location for your workspace should be your first step.

“There are some simple, simple ways that people can rethink their home office without a big investment and make that space really work for them,” Varone says.

In addition to using a guest room, a dining or living room can also function as a home office on a budget.

Establish the ideal setup for your workstation

Once you’ve decided on the room, determine the location for your workstation, Varone says. As you plan your home office, consider placing your desk or table near a window, allowing for natural light and an occasional glimpse of nature. Don’t face directly outside; instead, aim for a line of sight that’s perpendicular to the window, Varone says. That’s because, even on an overcast day, you’d be looking into too much bright light if you’re facing the window.

“What’s happening is your eyes are adjusting back and forth between the bright sunlight that you’re facing and the darker light of your computer screen,” Varone says. “And that ends up being really fatiguing for the eye.”

If you live with others, the biggest challenge will be privacy. Try to clearly define the boundaries of your “office” if you can, such as with an area rug, she says. Then ask your roommates or family members not to enter your space while you’re working, apart from an emergency.

When you're planning a home office, try to clearly define the boundaries of your workspace if you live with others.

If you use a multipurpose space, be sure to tidy everything up at the end of the day, Varone says. Taking the 10 minutes or so to clean up your “office” will reduce clutter. Ultimately, a clutter-free space can reduce your stress and boost your productivity.

“That also has a benefit of becoming a little ritual and helping you say, ‘All right, my workday is over,’” Varone says. “‘Now I can focus on my personal life.’”

Choose your furniture wisely

Now that you’ve found the perfect location for your home office on a budget, focus on finding the perfect work surface. Maybe it’s a traditional desk. Or it could be your dining room table or kitchen counter.

If you do need to buy a desk or chair, don’t feel like you need to spend a fortune. Try looking for a used office furniture store or liquidator in your area, Varone recommends. You could even try searching online marketplaces for a gently used model.

When planning a home office and considering your work surface, what matters most is the height.

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The average desk is 29 inches high, Loesing says. This will likely accommodate someone who’s 5’8”, she acknowledges, but for everyone else? It will take some adjusting to make it fit for them.

That’s where your chair comes in. Most people don’t need a high-end office swivel chair to work comfortably. As long as you can adjust the height of your chair to fit you and your desk, you’ll have a comfortable setup.

It’s important to adjust the height of your chair to achieve a neutral position, Loesing says. If you don’t have the instructions from the manufacturer on how to adjust your model, try searching for videos online, she adds.

One more chair takeaway from Loesing?

“If you can’t spend a dime, at least get as comfortable as you can where you’re sitting, and sit all the way back in your chair,” Loesing says. “When you don’t sit so your back is against the backrest, you’re using your back muscles all day long instead of them being at rest.”

When you design your home office on a budget, make sure your chair and work surface allow you to get into a comfortable sitting position.

Adjust your furniture and equipment

As you continue planning a home office, you’ll likely find that your computer is your most important piece of equipment. But it can also lead to neck strain. Whether it’s a laptop or an external monitor, Loesing says screen placement is key. In fact, she says it’s the single most important feature to address—as well as the most commonly disregarded one.

While you plan your home office, Loesing recommends keeping the following ergonomic guidelines in mind to help avoid neck strain:

  • Align your monitor so your eyes are level with the screen. (That’s typically about 4” from the top of the monitor.)
  • Place your feet flat on the floor and your knees at about a 90-degree angle with the ground.
  • Place your arms at about a 90-degree angle from the writing surface so your shoulders are relaxed.

If you only have a laptop, and no monitor, you still have options for raising your screen to eye-level. “There are budget-friendly laptop risers on the market,” Loesing says. “If you don’t want to spend any money, you can place books or reams of paper to bring the screen up to eye level.”

When setting up a home office for remote work and thinking about your arm placement, note that Varone is a strong advocate for an external keyboard. If you’re working at a desk that has a keyboard tray built into it, that’s a great way to keep your arms at about a 90-degree angle, she says. If you don’t have a built-in tray, she says you can improvise by placing your keyboard on an inexpensive laptop table situated directly under your desk.

While the exact adjustments will vary depending on your equipment, height and budget, the focus is on acquiring a neutral position or a position where there’s no strain on anything, Loesing says.

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“With the addition of standing desks, which encourage movement, employees often find they have significantly more energy at the end of the day.”

– Karen Loesing, owner of The Ergonomic Expert

Stand if it suits you

If you’re intrigued by the idea of a standing desk, you’re not alone. Standing desk sales have soared over the last decade, buoyed by reports of the dangers of too much sitting.

“Static postures (e.g., sitting all day in front of a computer) present more fatigue than dynamic working,” Loesing says. “With the addition of standing desks, which encourage movement, employees often find they have significantly more energy at the end of the day.”

You don’t have to buy an official standing desk to reap the benefits when planning a home office. “The least expensive way would be to take a laptop and place it up high on a built-in high counter using a compact wireless keyboard and mouse,” Loesing says.

Even if you don’t have a standing desk—makeshift or otherwise—you can still incorporate movement and circulation into your workday. Set a timer to remind you to stand up and stretch every 20 minutes, Loesing suggests.

For an even better boost, combine this with a popular guideline known as the 20-20-20 rule. Every 20 minutes, give your eyes a break by looking out a window at something at least 20 feet away, and do so for at least 20 seconds.

Don’t forget the ambience and accessories

Your desk, chair and computer are the major players when you’re setting up a home office for remote work. But there are a few additional items to consider, like lighting, plants and sound.

Setting up a home office for remote work should include some thinking around ambiance, like lighting, plants and sound.

Your overhead light fixture likely isn’t enough, as it will create shadows and can be too weak by the time it reaches your workspace, Varone says. She recommends investing in a table lamp that creates a wider spread of light in your area. Pick one with a translucent shade that will softly diffuse the light and make it easier on your eyes.

As you’re planning your home office, Varone also recommends incorporating a potted plant or flower into your workspace. Not only can it help purify the air and boost your mood, a natural element can contribute to a restful atmosphere.

Working from home means working with home noises—especially if you’re in an environment with roommates, a partner or little ones. To keep the noise down, consider noise-canceling headphones for a quieter workspace and clearer meetings. Other budget-friendly options? Try placing a towel under the door to block out noise from other rooms, Loesing says. Consider curtains instead of blinds, since they’re better at blocking out sound. Even pillows or large cushions can help reduce noise, she adds.

After you’ve taken care of the essentials and if you have the space and money, think about adding a reading chair to your home office. You can use this as a space to review documents or do some deep thinking, Varone says. It can be a welcome respite from your desk while keeping you in the office area, she adds.

When planning a home office, think about adding a reading chair to your space.

One last tip? Add a personal touch, whether it’s a framed family photo or a souvenir from your travels. It’s your home office, after all. Let your personality shine.

Set up a home office for remote work that allows you to thrive

Now that you know how to create a home office on a budget, you’re ready to make a space that works well for you. Whether you’re an experienced remote worker or a newbie, you can apply these expert tips to set up an office that’s functional and keeps you motivated day in and day out.

Ready to break in your new home office? Keep that motivation going by learning how to increase your earning potential this year.

The post Planning a Home Office? Check Out These Budget-Friendly Tips appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

8 Career Tips to Help You Crush Your Goals in 2021

Good riddance, 2020.

After one of the worst years of our lifetime, the ritual of setting New Year’s resolutions has taken on new meaning — especially when it comes to our financial lives. The pandemic erased the jobs of millions of Americans and docked the incomes of millions more.

But now is a time for forward thinking.

Instead of lamenting the past, we can apply a few lessons learned to make 2021 a much better year. (The bar is pretty low. We can only go up from here, right?)

1. Revisit Your Career Goals for 2020

Dig up your New Year’s resolutions from last year. If you didn’t commit them to paper (or a Google Doc) try to think back to the before times. You may have had some grandiose goal of landing your dream job or scoring a hefty raise.

Chances are you did not tick all those boxes. But as you sift through that list, look for any goals that can be salvaged. Then carry those goals over to 2021. Some tweaking may be required.

If nothing else, let this exercise provide a little comic relief. (How naive we were last New Year!)

2. Consider a Bridge Job

Bridge jobs can be a tool in helping you achieve a greater goal — even as you make a lateral but temporary career move.

Let’s say you had an epiphany and realized that your dream job is a creative director at a fancy advertising agency. You may not land the director position right off the bat. But you could gun for that junior graphic artist opening then work your way up.

Or, maybe you were in the hospitality industry and are still recovering from a layoff. You may not find the same job immediately. Instead, you could strategically use a seasonal job to fill the income void while you launch a concerted job hunt for a better match for your skills.

Here’s more on how bridge jobs can help you reach your career goals.

3. Optimize Your Resume

If you’re applying to a large company, chances are you’re doing it online and your resume is going to be reviewed by applicant tracking software (ATS) before any human sees it.

Basically, the software is a screener that scans your resume to see if you’re a good match for the position. It does that by matching skills and credentials mentioned in the job listing with your resume.

But if you didn’t optimize your resume properly, the ATS may not see you as a qualified candidate — even if you have the background the company is looking for.

Pro Tip

The trick is to make sure your resume uses similar phrases and wording from the job listing, aka resume keywords.

The format you choose for your resume is just as important. In certain cases, the standard chronological list of employment may not be the best choice. If you’re looking to change job fields or apply to a position for which you lack experience, career experts recommend using what’s called a functional resume: one that highlights your transferable skills and how those are a fit for the job you seek.

4. Jazz Up Your LinkedIn Profile

LinkedIn can be a powerful, free tool for job seekers. If you signed up but let your profile languish without posting a headshot or work history, carve out a little time to jazz it up. Because that time can really pay off.

You can spruce up your LinkedIn profile in as little as 30 minutes. Here’s what you should do:

  • Customize your URL.
  • Choose a professional photo.
  • Craft a killer headline.
  • Write a recruiter-drawing summary.
  • Ask for recommendations from colleagues.

The professional social media site is especially useful when you’re researching a new employer. You can search for people who have worked for the company (past and present) to get a sense of its work culture. (Don’t be afraid to ask directly!) And if you’re invited to an interview, you can easily look up your interviewer(s).

During the pandemic, LinkedIn implemented a photo banner that you can add to your profile picture to let employers know you’re actively looking for work. For a more discreet approach, in the setting menu, you can toggle an “open to work” feature that only recruiters can see.

And that’s just scratching the surface.

5. Prepare for Virtual Job Recruitment

Virtual recruitment is the new normal. Even before the pandemic, online job fairs and interviews were steadily gaining popularity.

By attending fairs and interviewing virtually, you can connect with people you may never have otherwise had the opportunity to. It may sound a bit daunting at first, but we’ve all been collectively thrown into this remote environment at the same time. Hiring managers and recruiters may be working out the technical kinks themselves and are more likely to be forgiving.

Having strong remote-interviewing skills can be an easy way to set yourself apart. This quick interview advice can go a long way:

  • Adjust your lighting. If possible, include multiple light sources from different angles to eliminate any harsh shadows.
  • If you wear makeup, consider applying a little extra because it doesn’t show well on camera.
  • Position your web cam at eye level. (No one wants to see up your nose.) Stack a few books under your laptop if needed.
  • Have an interesting prop behind you. A bookshelf, plant or painting could work wonders.

6. Brush Up on Your Interviewing Skills

Even if you feel like a rockstar interviewer, you probably don’t know for sure unless you’ve watched a video of yourself during an interview (unlikely) or conducted a mock interview with a friend or family member (also doubtful). Having someone else critique your body language and provide honest feedback will help you address quirks you didn’t even know you had.

It’s good to make your mock interview experience as close to the real thing as possible. During the pandemic, that likely means a video call. Have the gracious soul you’ve convinced to assist you make note of technical aspects like lighting as well as the substantive things like how you answer questions and react under pressure.

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If you’re one of the millions of Americans who have slipped into long-term unemployment during the pandemic, that adds another layer to your interview you should prepare for: questions about your employment gap. You will likely be asked about your time out of work directly and possibly even in an accusatory manner. Have an honest, straightforward response ready and highlight any professional developments or new skills you’ve honed in the meantime.

7. Get Comfortable Negotiating

Your 2021 career goals aren’t likely to happen without a bit of legwork. Many career-related goals (raises, new jobs, better hours) boil down to one major thing: negotiation.

For most folks, negotiating can stir up some uncomfortable feelings. Those feelings are the first (and probably biggest) roadblock to getting what you want.

Once you’ve committed yourself to having those difficult conversations, do your homework. If your negotiation is income-related, research salary ranges for your position. Peg yourself on that scale based on your location, skills and experience.

Mentally set three numbers: a reserve point (the lowest number you’ll accept), a target point (the salary you want) and an anchor point (the first number to come up during the conversation). Use these numbers to create a game plan.

No matter the type of negotiation, it’s important to practice (maybe that same friend from your mock interview is available?) and to keep your composure. Stay calm, respectful and flexible and you’ll be ticking off those goals in no time.

8. Use a Side Gig Intentionally

Gig work can be a blessing or a curse depending on how you put it to use.

Blessing: extra income to help you meet a personal goal, like paying off debt or honing new skills that further your career. Curse: a seemingly never-ending grind and critical means of income from which there is no escape.

Sounds a little dramatic, sure. But the pandemic has really underscored this dichotomy. As millions of jobs have vanished, gig work — especially app-based services — has become a safety net. The work is fairly straightforward, entry-level and can be started in days.

Left uncheck, though, the gig you planned to do on Saturday evenings can slowly creep into Sundays. Then Mondays. Before you know it, most of your income is coming from a smattering of gig apps that have no real job security or benefits.

To avoid this scenario, set attainable financial or career goals, meet those goals and then get out. In other words, your side gig needs an exit plan.

Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, remote work and other unique ways to make money. Read his ​latest articles here, or say hi on Twitter @hardyjournalism.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com