Freelancing is a common way for many people to become self-employed. While the allure of working your own hours and deciding who you want to work with is nice, there are other long-term things to consider before taking the leap.
Freelancing Cons
1. Unsteady income – Some people can’t handle not knowing when the next check is coming in. You have to work harder to keep income flowing compared to the study paycheck of a job.
2. Health insurance – You will have to cover the costs of your own medical insurance. This may not be a big deal for single people, however, if you have others to support you may find it difficult to pay this on your own.
3. Boredom – Even if you love what you do and you think it would be fun to do it as a freelancer, think twice. After a year or two, what you thought as fun can feel like another boring job. Dealing with clients can feel just like it did when you worked for someone else.
4. Firing clients – When you worked for someone else, you probably didn’t have to deal with firing anyone. Eventually, you will have a client or two where the working relationship just isn’t working out.
5. Discipline – There are so many more distractions when you work for yourself. If you’re not organized and disciplined enough to do the work, it can all backfire and have you more stressed out than you were at a 9 t0 5.
6. Accounting – You will need to become more responsible about keeping track of your income. Hiring a good accountant can alleviate some of the stress but you will still need to keep a closer eye on income and spending.
Of course, those are just some things to keep in mind. Freelancing can still be very rewarding in the long-term as well.
Freelancing Pros
1. Do things your way – Unlike a job where you may have been limited in how you worked, you can stretch your skills by working for yourself. You can learn new skills and try them out. You have more creative freedom.
2. Flexibility – You won’t have to ask a boss if you can go to a doctor’s appointment or attend a cool seminar. Your hours are yours to use as you wish. Errands can get done and you can set appointments when you like.
3. Vacations – You can schedule a vacation whenever you want. You can even take them as often as you want if you have the means.
4. Earn more income – It is quite possible to earn more than you did as an employee. You can set your own rates and take on as much work as you feel capable.
5. Multiple streams of income – Another cool benefit is having more time to experiment with other streams of income. Thanks to the internet, you can try your hand at affiliate marketing, network marketing, or start a new part-time business all together.
Overall, I still view freelancing as a great way to experience self-employment. It’s important to have a plan before going out on your own as well as a good amount of savings in the bank for emergencies.
It’s a good idea, if possible, to try starting your freelancing on the side at first. If you can keep your steady day job and work on freelance projects on evenings and weekends it will allow you to build up some money, a customer base and experience before diving in full time.