We must admit, the idea of a fixed or recurring deposit in a trusted bank is becoming quite an ancient concept of financial gain, with each passing day.

People from different professional and social backgrounds are investing in the 'stock market' to pursue financial wellbeing by choosing investment funds suitable to their needs and budget.

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‍‍What is the difference between saving and  investing?

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‍Why should gig workers invest in stock funds? 

The average salary of full-time employees in Australia is somewhere between $85,000 - $90,000. Although the number of hours in a week are fixed for a full-time office employee, a rideshare driver is promised 'flexibility' in terms of that.

The catch being, the driver will be paid on the basis of how many rides they could pick up and not the number of hours they spent on the road, relentlessly hoping to get a gig! Hence, your income as a gig worker is neither salaried nor fixed at the end of a month. 

Here's how investments support a gig worker's financial wellbeing better than saving:

• Your annual income is not a fixed digit and when filling a savings insurance application form the bank will require a metric to calculate your expense against your savings
  
  
• Your money will not sit idle even if you take a day off from work, the capital gain will increase the longer you keep your money in the market without having to move a finger! 
• You can choose different funds, bonds or stocks to distribute the capital so the risk is reduce and you have multiple rates of interests gained 
• You will develop a financial skill-set for future opportunities 

It is common and advisable to be cautious before committing to a financial habit. However, rest assured that investing is completely legal and discreet. If you are not originally from Australia, suppose you are an international student here, please take a look at the legal regulations for foreigners to invest in Australia

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‍How to choose funds and investment period? 

When you acquire units of a share corresponding to the amount you have invested, the company whose shares you have bought will list you under its 'individual investors'. This entitles you to a financial gain called 'Dividend income' until you withdraw the invested money.

This must give rise to the question: what should be my investment strategy? 

These are the key points to remember when choosing funds to invest in: 

• How much are you ready to invest given that there will be moderate risk factors and inflation
• How far can you go without withdrawing from your investments, it is important to maintain a healthy portfolio and frequent debits from can prove to be adverse
• Make Low-risk Investments if you are a beginner in stock trading and wouldn't mind a slow and steady financial gain
• There are several online trading platforms which don’t charge extra brokerage fee and provide several additional facilities, here are some of the top investment platforms in Australia: 

• eToro 
• Capital.com (best suited for small investments)
•  SelfWealth 
• Superhero.com.au 

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‍Negative and Positive Gearing, marginal tax rate, and other investment advice 

• Negative gearing - It is a situation in which  your expense in maintaining a source of income, asset or interest based income such as investments in funds exceed the amount earned from it, therefore causing a loss. 

What causes negative gearing? 

One of the most important causes of negative gearing can be failure to keep record of the expenses incurred. Therefore, start tracking your expenses today! To avoid negative gearing the Australian Government has also introduced 'deductions' for individual investors. 

• Positive gearing is the exact opposite of negative gearing, it marks an inward 'cash flow' toward the funds which you have invested in indicating that the income from investment exceeds the expense needed to  maintain them. 
• Why are investment incomes  subjected to marginal taxation? 

You can't use the money and it is benefiting the economy with cash flow, then why should you pay tax for it? This is a government certified proof that you own the property or assets as well as the income generated from it. 

Each financial year, the Australian Tax Office fixes certain tax brackets corresponding to income levels and collects tax accordingly.  It is essential for your portfolio to display regular payment of tax. 

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Claim your first Investment Capital today

We can understand that it is difficult to make an investment decision based on one blog. But it is still important to plan your financial wellbeing which means you need to focus on how your income should exceed your expenses in a way that there is still ample money left to save up.

The future is unpredictable and it is your responsibility to secure it for yourself and the people you love. If you have been driving for quite some months now, you already have an amount you can put into savings or investments! Where exactly, you ask? 

From car or bike insurance to fuel cost,  every expense related to your gig income is eligible for tax deduction! If you have tracked these expenses then it's already 8-10% of saving on tax! In case you track your mileage it is possible to calculate your profit and track how much of the earnings you have saved. 

But if you haven't  started yet then it's high time you should start tracking your income, expenses, mileage and financial goals on the MyGigsters app to secure your future!

 *Disclaimer*

All investments are subjected to market risks. The information provided in the blog is generic under usual market standards and share factors. Contact an affiliated financial institution to gather in-depth information on investing. Please invest after reading all the scheme related documents specified with each stock fund.

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