20 Dec I’m joining the gig economy. What about retirement?

Q. I lost my job and I’m officially joining the gig economy. What’s the best way for me to save for retirement?
— Gig worker

A. It’s tough to lose a job, but we’re glad to hear you’ve found a way to make a living.

When you’re creating your own retirement plan, there are some simple steps you can take to save regularly.

“I am a fan of systems that automate the process so you don’t have to do anything except review every once in a while to make small changes,” said Jerry Lynch, a certified financial planner with JFL Total Wealth Management in Boonton.

Start by living below your means, Lynch said.

That means avoiding debt, which Lynch calls a recipe for disaster.

Next, save all the time.

Lynch recommends you start with two bank accounts: a checking account for paying your bills and a second account that you use as a parking place and don’t touch.

“Then automatically have money going into that second account monthly,” Lynch said. “You can look at that second account to see how well you’re saving, rather than co-mingling the funds with your checking account.”

Once you get six months worth of expenses saved — your emergency fund — move to the final step.

“Once you have your emergency fund set up, with the new money still coming in monthly, send it out to an investment account — automatically,” he said. “The S&P 500 is a great place to start.”

As for what kind of investment account you should use, take a look here to see options for the self-employed.

Email your questions to .

This story was originally published on Dec. 20, 2019.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.