Category: Income

What’s The Purpose of An Emergency Fund?

Last week I had a $400 emergency. Actually it was more like a $513 emergency, and was left-out of work for two weeks. Fortunately I’m prepared for a situation like this, because I’ve been funding a small emergency fund.  And therefore had to withdraw some money from it.  Last year, it was reported that an average of 34% of respondents with an income less than $40k/year would be able to cover a $400 emergency.  Which means paying in cash, or using a credit card that’d be paid off by the end of the month.

The average number of respondents who reported being able to “handle the emergency” was higher along higher income brackets (e.g., of those making $40k – $100k / year, 62% responded in this way).  Which means that 38% and a full two-thirds (i.e., 66%) of individuals last year, earning between $40k – $100k and ≤ $40k respectively, reported being unable to handle an emergency expense totaling $400.  Furthermore, being unable to handle such an emergency expense was related to putting it on a credit card, and paying it off over time, borrowing money from friends and/or family members, or just not paying the expense all together¹.

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Why Are Millennials Rideshare Driving?

In the past few years, on-demand transportation modes have become increasingly more popular.  And Millennials rideshare driving have been powering these technologies, acting both as consumers and workers.  According to the Young Invincibles, an estimated 23 million young adults fall between the ages 18 – 34.  These young people make up the bulk of the on-demand economy workforce¹ ( check out the .pdf attached here); however, we Millennials are making less than the generation before us on average.

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Being Sick in the On-Demand Economy

J.M. here.  Being sick means I’m unable to drive to the same capacity as if I were healthy.  Which makes it tough on rideshare drivers.  So, how do rideshare drivers cope with being under the weather?  Essentially, we live off our savings until we’ve warded off the illness.  But there’s other strategies to implement that will help you beat the cold more rapidly. And get back to driving for-hire.


Many drivers are full-time participants in the on-demand rideshare gig.  Which means when we get sick, there’s literally no income for us.  I have to put in a minimum number of hours each week, no matter what.  It’s pretty serious business!  

Don’t Get Left Out in The “Cold”

Since coming down with a cold can mean a double whammy for our income, the best way to keep the money flowing in is to avoid getting sick in the first place.  If that’s not feasible, I will try to bounce back from being sick as fast as possible.

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Tiny actions now will have a big effect later.

Eliminating Debt: How To Pay Off Credit Cards

 

What does having no credit card debt feel like?  Like discovering an oasis in the middle of the desert.  How do you get to that point?

You need to make much more than just the minimum monthly payment.  And I have transferred big chunks of my balance to low interest credit cards.  That means more of each payment is going towards the principal balance, instead of interest.   But that wasn’t always the case.   Read more

How Much Can I Make Rideshare Driving in NYC?

J.M. here. January is typically a slow month for rideshare driving, which means resorting to meeting income guarantees and promotions from transportation network companies (TNCs) to supplement income.  I’m closing in on a year of rideshare driving in NYC, and two years of rideshare driving in general.  So with the lull in demand, let’s examine which location is more profitable: driving in NYC or in New Jersey?


To determine which geographical location is more profitable, driving in NYC or in NJ, I’ve dug up all of my past income statements beginning from day one.  The data were pretty interesting when I averaged the weekly income payouts for each month.  I wanted to know not just which months were the best for me, but whether getting a TLC license has been beneficial or not.  So I averaged each weekly payout per month in NJ and NYC, and found that there was a substantial income boost after transitioning into the NYC market.  Check out the graph below:

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One way sign pointing upwards.

How to Setup Your Budget Effectively

J.M. here.  As I get into the year more, I’m constantly thinking about making a budget that will stick.  And subsequently, in my next Friday financial installment, wrote this money savings article associated with my new budget.  It’s not easy budgeting for future expenses, especially when spending temptations are so abundant.  Check out this very basic budget plan for starters on where to begin.

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New Year’s Eve Guide (Updated)

J.M. here.  I’ve come across some additional resources to provide rideshare drivers in their preparation for the big night.  This post seems to be attracting a lot of attention, which is great!  NYE is only two days away, and at this point drivers are anticipating to be very busy.  Read on for the full post with updated information on how to approach this inevitable income bump.

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Personal Finance Friday

I’m starting a new series on Rideshare Love that will devote one Friday a month to discussing the personal finance world.  Dealing with finances for a rideshare driver is an inevitable.  Saving money is something that’s naturally difficult to do, and even harder when you have lingering debt to payoff.  Most people justify spending money on purchases, both great and small, and ignore their spending behaviors with credit cards.  I know we all could use a bit more saved up.  But where to even start?  Well, let’s start with the basics.

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