Unlock the path to financial success with the earnings you make on the road starting with these financial tips.
Know your financial destination
Knowing precisely how you plan to use your earnings is key as a Grubhub driver. Is delivery work your primary source of income? Does it only help with bills? Or is it more of a side hustle to build savings or grow your disposable income? Defining your financial reasons for delivering can help you determine when and how often you should work. Here are some recommendations to consider as you define your goals:
Set a savings target
Once you’ve determined your financial destination, it’s time to set a savings target. Do you want to save daily, weekly, or monthly? How much do you need to save? A clear savings goal can help you understand just how often you should deliver so you can plan a schedule that works for you.
Pre-set your delivery schedule
A well-defined savings goal helps you stay motivated to create the most useful delivery schedule for you. Grubhub’s block scheduling lets you reserve delivery time slots in advance so you can be on the road during peak delivery times like dinner or weekends.
Manage your budget with care
Managing your finances starts with understanding your income and expenses to help you make informed decisions. Calculate your total earnings from Grubhub deliveries, including any tips and bonuses, and then compare it to your total expenses.
Your earnings will likely vary from month to month, so it may help to organize your expenses into fixed and variable categories. Fixed expenses are those that remain constant each month, such as rent or car insurance payments. Variable expenses fluctuate, like groceries and entertainment. Prioritize your expenses based on your needs and financial goals.
Pay off debt with a popular strategy
Grubhub drivers can tackle debt using smart strategies like one of the following:
- The snowball method: With the debt snowball method, you allocate any extra money you can towards the debt with the smallest balance. This means you pay as much as you can afford on that smallest debt while making only minimum payments on the others. Once you pay off the smallest debt, payments are applied to the debt with the next smallest balance, and so on. Tackling smaller debts first can be motivation to keep going.
- The avalanche method: With the debt avalanche method, you allocate any extra money you have toward the debt with the highest interest rate, all while making the minimum payment on all other debts to avoid any late fees or penalties. This means you’re targeting the debt that’s costing you the most in interest. Once the high-interest debt is paid off, you then tackle the next highest. This method may be best if you’re looking to save on interest charges.
Pay your taxes as an independent contractor
Grubhub delivery partners are independent contractors responsible for calculating and paying taxes on annual earnings. Those who make at least $600 during the calendar year receive an electronic copy of the 1099-NEC form, which you use to file your tax return. Here are some ways to help you prepare for tax season:
- Research tax deductions for delivery drivers to identify legitimate business expenses.
- Maintain detailed records of your expenses related to gig work (mileage, car maintenance, fuel, delivery gear, etc.) and hold on to receipts.
- Each state has its own tax laws and filing requirements, so be sure to research your state’s tax regulations.
- Use our Intuit TurboTax reward: Pro & Premier Grubhub delivery partners are eligible to receive 50% off TurboTax Premium, and all other delivery partners are eligible to receive 25% off. TurboTax makes it easier to maximize your deductions, estimate quarterly taxes, track mileage, and store receipts for a seamless tax filing experience.
- Consider seeking the advice of a tax professional or accountant who specializes in self-employment taxes.
A good financial plan can help you meet your financial goals, whether for paying off bills and debt or saving! We help make it possible for delivery partners like you to reach your goals to build a stronger, more financially stable future.
