James Patterson
Former Operations Manager at DoorDash
Opportunity Cost
In This Article
Definition
Value of the next best alternative foregone. Time spent on low-paying gig work has opportunity cost of higher-paying options.
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FAQs
How does opportunity cost apply to gig work?
Every low-paying order accepted is time that could be spent on better-paying work.
Similar Terms
Cash Flow
Movement of money in and out of your gig business, important for managing variable income.
Variable Income
Income that changes from period to period, typical for gig workers.
Emergency Fund
Savings for unexpected expenses or income gaps, especially important for gig workers.
APR (Annual Percentage Rate)
The yearly interest rate charged on borrowed money or earned on savings, including fees, expressed as a percentage.
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Important Disclaimer: This content is for informational purposes only and should not be considered tax, legal, or financial advice. Consult a qualified professional (CPA, tax attorney, or financial advisor) for advice specific to your situation.