The new gig economy has a lot of benefits for people looking for a unique way to make a second income or even for those in between jobs. Many are flexible and don’t require special training.
It seems like those jobs that people would start working after college and continue right through to retirement don’t exist anymore. Because of this lack of stability, people are always on the lookout for ways to make extra money right away.
Uber is one of the most popular of these gigs. All it takes is a car and a smartphone and you are good to go to start making some money.
It isn’t all peachy, however. In this article, we will go over the pros and cons of driving for Uber to give you something to think about before you dive in.
The most obvious benefit to having a flexible schedule is that you work when you want. Maybe you just need a few bucks before going on vacation so you do a few hours here and there after work or during some events in your area.
You work when you feel like. If you have some free time that would be better spent making money instead of sitting in front of the TV then you can do that. Things got busy in your life? Don’t take any jobs that week.
That flexibility also means no stability. You don’t know how much work you will do in the time that you have available. If your free time is the middle of the day then you may not be picking up many passengers.
If you need to earn a specific amount of money in a specific amount of time, that may not be possible.
Since you are not an employee, but a private contractor, you can deduct your expenses from your income.
Things like gas, maintenance and even getting your car detailed can all be itemized and help to lower your tax bill.
Not being an employee means that Uber doesn’t have to make any contributions to your Social Security or Medicare. You will have to pay these extra taxes yourself. To understand how your taxes will work and about other financial matters, check out Money Monarch for some advice.
Any passengers you may be picking up will have a rating from other Uber drivers. Before you pick them up you can check to see if they have had any negative experiences that may make you think twice about picking them up.
After all, you are picking them up in your own personal car and safety can be a concern. There is no anonymity so you know who your passengers are.
Even when passengers have a good rating, you never really know what will happen in your vehicle.
Passengers can get drunk and get sick in your car. Or they can be aggressive. Sometimes you may have a reason to feel unsafe with some of them. You do have some control, but there is still a risk of picking up a bad passenger.