Finding it hard to achieve your financial goals? You could join the growing ranks of Aussies earning a second income to boost their bank account balance to save for a home deposit.
In today’s wired world, earning a second income is easier than ever. Thanks to the rise of flexible working businesses such as Airbnb and Airtasker, second incomes are helping Aussies hit their financial goals and achieve their property dreams.
According to the most recent data from the Australian Bureau of Statistics, 657,000 Aussies had more than one job in 2007 – that’s 6% of all employed people. The figures show that the industries in which people are more likely to have a second job were retail trade (14% of all second jobs), health care and social assistance (12%), education and training (10%), accommodation and food services (9%) and agriculture, forestry and fishing (9%).
The rise of the sharing economy
But in the age of the sharing economy, a growing number of Aussies are turning to platforms such as Airbnb, Airtasker and more, with research showing that Australia’s sharing economy increased rapidly to $15.1 billion in the second half of 2016. Even more impressively, this number is projected to grow to $55 billion by 2021 – close to a fourfold increase in five years.
Across Australia, more than 115,000 properties are listed on Airbnb, while Sydney is one of Airbnb’s top 10 cities globally with more than 22,000 listings. On Airtasker, an Australian online marketplace where users can choose from a database of “Airtaskers” to carry out tasks as diverse as picking up dry cleaning, designing websites, assembling flat-pack furniture or providing IT support, more than 1.3 million Aussies earn a second income by listing their services.
How it can work for you
One bright young Aussie using Airtasker to achieve her financial goals is Laura Henao, a full-time university student who holds down a part-time job as an events organiser in Sydney while using Airtasker to earn a second income. She listed her services on Airtasker for wardrobe organising and de-cluttering in 2013 and has gone on to grow her profile into a business, called Stylish Mess.
“When I signed up to Airtasker, I was in search of some extra money since I had just left high school. Now I’m five years into my university degree and still use Airtasker as my ‘side hustle’ where I do odd jobs – specifically wardrobe organising, de-cluttering and admin-related roles,” Laura says.
While she started off with the goal of earning extra cash for living expenses, Laura admits that earning a second income is now geared more towards her goal of saving for a home deposit with her partner. She will continue to use Airtasker for that purpose after she graduates from university and finds a full-time job in her chosen field of engineering.
“We’re a young couple currently renting, but obviously purchasing a home is our dream, our all-time goal and it’s something we’re working towards,” she says.
Things to consider
If you choose to take on a second job or take part in the sharing economy, be aware that there may be tax implications. You can only claim the tax-free threshold on income from your first job, and will have to pay a higher tax rate on the second income.
You should seek advice from a financial advisor or accountant to ensure you know what to expect.
And if you’re saving for a deposit towards your first home, thinking of refinancing or buying an investment property, an Aussie broker can help you consider all your options and choose the right home loan for your needs.
If you’d like to speak to an Aussie Broker today and get your property plans moving get in touch here.