SINGAPORE — With graduation season upon us, university graduates are set to find their first full-time jobs. Amidst the recovering backdrop from a global pandemic and the new hybrid arrangement for working, it seems like the spotlight has been thrown on one very important question: “Is there a difference working full-time and freelance?”
This is part of a series where Yahoo Finance Singapore will focus on different aspects of millennials and their finances. In this fifth part, we look at the financial benefits, as well as the pros and cons of being a gig worker versus being employed full-time.
The financial advisors that Yahoo Finance Singapore spoke to all agreed that the biggest benefit of full-time employment is that it guarantees a stable flow of income every month. This means that young adults would have the capacity to save more and plan towards long-term wealth accumulation from an earlier age.
Other than the income, full-time employment also comes with a slew of health and other welfare benefits such as Central Provident Fund (CPF) contributions that will serve well in the long-run. The CPF is a mandatory social security savings scheme for Singaporeans and permanent residents funded by contributions from employers and employees.
“From a strictly financial stability point of view, full-time employment will be able to provide more stability than gigs that may come and go, which lead to an inconsistent income and irregular working schedules,” advised Gregory Van, CEO of Endowus, a Singapore-based financial technology company.
Also read: What can millennials invest in with only S$5,000?
Also read: What millennials can do to cope with rising inflation
Also read: What should millennials invest in — stocks or cryptocurrency?
Samantha Chong, 23, a fresh university graduate, has decided to start work on a full-time job as a graphic designer at a marketing firm instead of taking gig jobs.
“Full-time work allows me to have a steady flow of income and I don’t have to worry about not having enough money,” said Chong, who graduated from the National University of Singapore (NUS) in July 2022. “While the hours might be long on some days, I believe it is a give and take situation.”
More than that, financial experts have pointed out that full-time employment is also more beneficial for millennials like Chong who have always been certain on the career path they want to pursue post-graduation.
After all, getting a full time job in the industry will get you started on getting the foundation and learning about the industry, thus having an early start to building one’s savings.
“Every individual is unique, and their career aspirations or the types of experiences that they seek will definitely differ. I am just glad I know that design is something I have always wanted to do,” added Chong.
On the other hand, freelancing or gig jobs seem to be a popular option among young adults these days too. With flexible working arrangements on the rise, millennials may also enjoy the space to explore their creativity and time, which is one of the biggest benefits of freelancing and taking on gigs.
“Taking on gig jobs has given me the flexibility of time to do more leisure activities like running, reading and cycling. Since I am still young, I am not worried about not earning enough as compared to my peers,” said Bernard Lai, 26, another fresh graduate from NUS who has since taken on freelance photography jobs upon graduation.
Others may choose to be their own boss — whether its’ starting their own business or starting a freelance career. Either way, it is a great opportunity to hone one’s skills and discover a new passion that can be diversified into an alternative income stream in the future.
“Ultimately, don’t be afraid to explore and find something you enjoy doing and don’t be afraid to take risks or get out of your comfort zone, you’ll find it gets harder to do so as time goes on,” advised Salim Dhanani, CEO and co-founder BigPay, a financial mobile app.
Yet, the harsh reality is that freelancing isn’t all a bed of roses. Gig jobs might offer more flexibility in schedules and more time for relaxation, but the opportunities for building oneself up for lifelong employability may be limited.
Additionally, freelance workers may not receive CPF contributions, which can leave a big gap in their retirement nest egg, as CPF savings can grow with compound interest. This means that gig workers have to be more disciplined in saving up and setting aside contributions in their CPF accounts.
Whether full-time employment or freelancing upon graduation, there is no right answer. Given that there are pros and cons to each option, it is entirely a personal choice.
However, the final advice that financial experts agreed upon is that: “Whichever option you pursue, it is always good to start building a good capital base that you can fall back on if needed, or use to invest for additional income.”
“We often think of assets as being how much money or investments we have, but actually the most important financial asset a young person can have is themselves, or more specifically, one’s income-generation ability over an employment lifetime,” said Chuin Ting Weber, chief executive officer of MoneyOwl, a bionic financial advisor.
“I think that full-time employment would provide opportunities to build ourselves up, in terms of skills, mindset, attitudes and experience, which young people need as a foundation,” she added.
Stay in the know on-the-go: Join Yahoo Singapore’s Telegram channel
You can also follow us on Facebook, Instagram, TikTok and Twitter.
Bottled water, noodles and detergent soap are among the 67 products that will see price hikes. What else is going up?
From events and activities to rediscovering old favorites, there are lots to do in Manila this week.
THE Department of Health in Central Visayas (DOH 7) revealed that a total of 4,744,896 individuals in the region have already received their second Covid-19 vaccine dose.Dr. Van Phillip Baton, medical coordinator for emerging and reemerging infectious disease of the DOH 7, said the number represents 83.16 percent of the total 5,705,754 vaccinated individuals from the four provinces in the region.The 5,705,754 vaccinated individuals comprise 70 percent of the total population of the entire Centra
THE Department of Education (DepEd)-Division of Mandaue City has received an additional budget of P17 million from the City Government.Nimfa Bongo, DepEd-Division of Mandaue superintendent, told reporters on Wednesday, August 17, 2022, that the amount came from the City's Special Education Fund supplemental budget.Bongo and DepEd Mandaue personnel met with Mayor Jonas Cortes on Monday, August 15.Bongo said the money will be allocated to the Mandaue City Comprehensive National High School, Pagsab
The Philippines wants a bigger budget for 2023 to focus on President Ferdinand Marcos Jr.'s priority sectors. Can this help deliver his promises?
AGENTS of the Philippine Drug Enforcement Agency (PDEA)-Central Visayas arrested three persons during a raid in Sitio Upper Yati, Barangay Quiot, Cebu City on Tuesday night, August 16, 2022.It was the third suspected drug den that the PDEA 7 raided in the barangay this year and the 26th overall in the city.Leia Alcantara, PDEA 7 spokesperson, identified the suspects as Maria Elena Gimena, 40; her live-in partner Albert Piala, 38; and Hilberto Gallendo, 46, all residents in the area.During the an
The work for the Rama administration’s achieving its vision for Cebu City to become like Singapore has begun, and the mayor’s “investment begging” resulted in pledges of P1.3 billion from businessmen for the completion of the Cebu City Medical Center and construction of multiple medium-rise buildings that will house displaced informal settlers.These funding commitments are “concrete pledges,” and the projects will be realized, Rama’s team assured the public.It is good to hear from Mayor Michael
Former Senatpr Leila de Lima marks her 2,000th day in detention. This is what she said about the occasion.
THE Department of Labor and Employment (DOLE) is warning the public not to be deceived by a job hiring post on social media using the department's official logo.The post is reportedly looking for interns for the DOLE's Government Internship Program (GIP) and asking applicants to submit their personal information and other credentials.“This is not the way how we do hiring of GIPs. We do not share and amplify for the world to see the personal information of the applicants in adherence to Republic
Airlines in the Philippines have pledged to adhere to the government’s order on lower fuel surcharge. Will this make Filipinos travel?
INTERNATIONAL Boxing Federation super flyweight No. 1 rated Jade Bornea keeps himself busy and takes on Mexican journeyman Ivan Meneses in an activity fight on Aug. 19 in Cabo San Lucas, Mexico.Bornea is closing in on a world title shot and is mandatory challenger of the IBF super flyweight belt, currently around the waist of Fernando Martinez.The 27-year-old Bornea could earn a title shot at the winner of the rematch between Martinez and former titleholder Jerwin Ancajas, which reportedly will
After Pakistan opposition politician Sheikh Rasheed Ahmed accused police of raiding his home and party office, Facebook and Twitter posts shared a photo purportedly showing him hiding from police in hospital. However, the photo was taken in June 2020 when Ahmed was treated for Covid-19. He has appeared in public in August 2022 after claims about him hiding circulated."The one who sets parliament on fire and gives open threats to institutions, Sheikh Rasheed has made the excuse of being sick and
The San Fernando Buffalos handily defeated the Bogo City Bugoys, 94-63, to even up their win-loss record in the Pilipinas Super League 21-Under VisMin Leg on Tuesday night at the Compostela Sports Complex.The Bugoys got off to a fast start early on and led by eight but the Buffalos hit their stride from the second period onwards, taking a 39-30 lead at halftime after they outscored Bogo City, 23-13, during that stretch.It was all San Fernando from that point onwards as the Buffalos led by as muc
It may take longer for the Philippines to reach the status of an upper-middle-income country, according to its socioeconomic planning chief. Here's why.
The San Fernando Buffalos handily defeated the Bogo City Bugoys, 94-63, to even up their win-loss record in the Pilipinas Super League 21-Under VisMin Leg on Tuesday night at the Compostela Sports Complex.The Bugoys got off to a fast start early on and led by eight but the Buffalos hit their stride from the second period onwards, taking a 39-30 lead at halftime after they outscored Bogo City, 23-13, during that stretch.It was all San Fernando from that point onwards as the Buffalos led by as muc
A MOTORCYCLE rider died after he crashed into a Fuso truck along Lacson Street at Barangay Mandalagan in Bacolod City at about 9:20 p.m. Tuesday, August 16.Police identified the fatality as Jundie Doroteo, 28, of Barangay Campo Santiago, Sagay City, Negros Occidental.Captain Armilyn Vargas, commander of Police Station 3, said yesterday, August 17, that Doroteo was driving his Kawasaki motorcycle toward the south direction when he bumped into a truck driven by Kensly Rojonan, 22, of Villa Lucasan
POLICE rescued 19 minors during the implementation of Carcar City’s curfew ordinance in Barangays Perrelos and Ocaña from 10 p.m. Wednesday, Aug. 17, to 4 a.m. of the following day, Aug. 18, 2022.Lt. Col. Ardiolito Cabagnot, chief of the Carcar City Police Station, said in an interview with SunStar Cebu that they rescued the minors to avoid a repeat of thefts and other criminal activities perpetrated by minors in the area.Cabagnot said the curfew implementation would also discourage other person
After record-breaking downpours caused flooding in several parts of South Korea in August 2022, a video was viewed thousands of times on YouTube and in Facebook posts that claimed it showed the coastal city of Incheon being drenched by huge rain clouds. The video, however, has been shared in a false context. It has circulated since February 2020, and shows a time-lapse of a storm front as it rolled over the Australian city of Perth."Heavy rain clouds in Incheon seen in real-time," reads the Kore
Were you even aware it was illegal?
MANDAUE City is mulling on exporting its local delicacies, particularly its well-known "bibingka" (local rice cake), to help promote more Filipino food to the international scene and help Mandaue City’s small and medium-sized enterprises (SMEs) develop their businesses.Kristian Cabahug, Mandaue Investments Promotions Tourism Action Center (MIPTAC) head, told reporters on Wednesday, August 17, 2022, that they target to develop this initiative by next year.Cabahug said they had already coordinated