The Pros and Cons of a Freelance

So you're thinking about becoming a freelancer, huh? The idea of being your own boss, setting your own hours, and having the freedom to work on your terms is appealing. But before you quit your day job to pursue the freelance life, there are some important pros and cons to consider. As an experienced freelance writer for over 10 years, I've lived through the highs of highly-paid work and flexible schedules, as well as the lows of chasing payments and healthcare.

This article will give you the honest truth about what it's really like to freelance full-time so you can decide if it's the right path for you. The reality is, freelancing isn't for everyone. It requires discipline, the ability to find and retain clients, and managing the financial ups and downs. But for the right person with the right skills and motivation, freelancing can be an incredibly rewarding career choice with opportunities for creativity, growth, and work-life balance like no other.

High Demand Freelance Skills That Pay Well
Setting Your Own Hours and Being Your Own Boss
Dealing With Inconsistent Income and Lack of Job Security
Build an emergency fund
Diversify your income streams
Consider a part-time job
Balancing Work and Life When You Work From Home
Set a Dedicated Workspace
Set Working Hours
Take Time Off
Disconnect After Work
Health Insurance and Retirement Planning: How Freelancers Can Stay Covered
Health Insurance
Retirement Planning
Conclusion

Some of the most in-demand freelance skills also happen to be some of the highest paying. If you have experience in any of these areas, you can likely land well-compensated freelance work.

Web development and design. Websites and mobile apps are essential for most businesses today. Skills like HTML, CSS, JavaScript, and UX design are always sought after. According to Glassdoor, the average pay for a freelance web developer in the U.S. is over $75 per hour.

Graphic design. From logos to product packaging, companies frequently need help with visual branding and marketing materials. As a freelance graphic designer, you can make $20 to $50 per hour, especially if you're skilled with tools like Photoshop, Illustrator, and InDesign.

Writing and content creation. Businesses need content for their websites, blogs, newsletters, and social media. If you have a way with words, you can find freelance work as a writer, blogger, copywriter, or content strategist. Pay typically ranges from $25 to $100 per hour depending on your experience.

Video and photo editing. In today's digital world, visual media reigns supreme. Skills like filming, editing video, and retouching photos are highly sought after. Freelance video editors and photographers average $30 to $100 per hour.

Virtual assistance. As a virtual assistant, you handle administrative tasks remotely for individuals or businesses. Duties can include managing schedules, travel planning, email management and more. Most virtual assistants charge between $25 to $50 per hour.

The key is finding what you do well, marketing your services, building a strong portfolio, and networking. With in-demand skills and persistence, you can land rewarding freelance work. The freedom of freelancing is worth the effort.

Being your own boss as a freelancer definitely has its perks. You get to set your own hours and work when you want. Feel like sleeping in? Go for it. Want to take the afternoon off to run errands? You can do that too. No more rigid 9-to-5 schedules or inflexible work hours.

Of course, with freedom comes responsibility. When you're freelancing, you have to be self-motivated and disciplined enough to get work done on your own timeline. If you miss deadlines or don't put in the necessary hours, you don't get paid.

Many freelancers find that working from home improves their work-life balance. No more long commutes or rush hour traffic. You can take breaks when you want and avoid office distractions. However, working alone at home all day, every day isn't for everyone. Some people miss the social interaction of an office environment.

Another benefit of freelancing is that you can choose the types of assignments you work on and the clients you work with. Don't want to do any more boring data entry projects? Then don't take them! As your own boss, you get to be selective about the jobs you accept.

In the end, whether the freedom and flexibility of freelancing outweigh the lack of job security and stability comes down to your priorities and work preferences. For some the pros far outweigh the cons, while for others a traditional job is a much better fit. As the saying goes, to each their own! The choice is yours.

One of the biggest downsides to freelancing is the unpredictable income and lack of stability. Some months you’ll be flush with cash, other months the work may dry up. It can be difficult to budget or plan financially when you never know how much you’ll make each month. Here are some tips for dealing with the inconsistent income and uncertainty that comes with freelancing.

Having a cushion of savings to fall back on during slow periods is essential. Aim to save enough to cover 3-6 months of living expenses in case work opportunities decrease. This emergency fund will give you peace of mind that you can pay the bills even if you have little or no work for a while.

Don’t rely on a single type of freelance work or a few high-paying clients. Broaden your offerings to include multiple services, collaborate with other freelancers, and continuously look for new clients. The more diversified your income streams, the less any single drop in work will impact you financially.

If freelancing isn’t covering your basic needs, you may need to supplement your income with a part-time job. Look for flexible work that won’t interfere too much with your freelancing. Retail, teaching, and driving for a ridesharing service are options that often have schedules that can work around your freelance commitments.

While the uncertainty of freelancing can be stressful, focusing on building financial security and stability will help ensure you can thrive in your career as an independent professional. With time, the ups and downs may become less anxiety-provoking as your experience grows and income diversifies. The rewards of a freelance lifestyle can make the challenges worthwhile.

When you work from home as a freelancer, finding the right balance between work and life can be challenging. Without the physical separation of an office, the lines tend to blur. However, with some discipline and boundaries, you can enjoy the flexibility of freelancing without letting your work take over your life.

Designate a space in your home specifically for work. Whether it’s a spare room, basement, or corner of a room, make it your “office.” Mentally, having a dedicated space helps shift you into “work mode” when you’re in that area. When you leave that space at the end of your workday, you can more easily shift into relaxation mode.

One of the biggest perks of freelancing is a flexible schedule. However, without set working hours, you may end up working longer and more often than you intend. Decide on your typical work hours and set a routine. For example, you may work 9 am to 5 pm with an hour for lunch, Monday through Friday. Of course, you can be flexible when needed for client meetings or deadlines, but having a routine prevents work from creeping into all hours of the day and night.

It can be tempting to work long hours as a freelancer to squeeze in as many billable hours as possible. However, taking adequate time off is essential for your productivity, creativity and work-life balance. Aim for at least two weeks of vacation time per year, as well as regular breaks like a weekend getaway or staycation. You’ll return to work feeling recharged and motivated.

Make a rule for yourself to stop checking email and doing work-related tasks after your set work hours. Stay offline and avoid working in your dedicated workspace. Do hobbies, spend time with loved ones, get some exercise. Mentally disengaging from work will make you better equipped to start fresh the next day. Achieving good work-life balance as a freelancer requires conscious effort, but with regular practice of these techniques you can enjoy the freedom of working from home without it taking over your life.

As a freelancer, you’re responsible for your own health insurance and retirement planning. This can be overwhelming to figure out, but with some research you can find good options to keep you covered.

Freelancers have a few choices for health insurance:

• Purchase a plan through the Health Insurance Marketplace. Plans range from basic to comprehensive coverage at varying price points. You may qualify for subsidies and cost-sharing reductions based on your income.

• See if you can stay on a spouse or partner’s employer-sponsored plan. Some companies allow domestic partners and spouses to remain on the plan even if you have your own income. You’ll have to pay the full premium but it may be more affordable than other options.

• Look into association health plans through a freelance organization you belong to. Some offer group health insurance plans with lower rates than what you’d find on your own.

• Consider short-term health insurance plans. They typically last 3 to 12 months and have lower premiums but cover less than ACA-compliant plans. Only use as a temporary solution.

• Price out private health insurance plans. Compare rates and coverage from major insurers in your area. Shop around at different price points to find a plan that suits your needs and budget.

As a freelancer, you need to take saving for retirement into your own hands. Some options to consider:

• Open an IRA (Individual Retirement Account). Contribute up to $6,000 per year for 2019 ($7,000 if 50 or older). Choose between a traditional IRA or Roth IRA.

• Start a solo 401(k) or SEP IRA. These plans allow you to contribute significantly more than a standard IRA. Solo 401(k)s allow up to $56,000 per year.

• Meet with a financial advisor. They can help you create a comprehensive retirement plan based on your income needs and time horizon for retirement. They may suggest investing in the stock market, annuities, real estate, or other opportunities to generate wealth for your retirement.

Planning for health coverage and retirement as a freelancer does require effort and expense. But by taking advantage of all options available and making smart financial decisions, you can gain security and peace of mind for the future. With discipline and consistency, you'll build health and wealth benefits to sustain you for years to come.

So there you have it, the major pros and cons of going freelance to consider before taking the plunge. While the freedom and flexibility are hugely appealing, the uncertainty and instability can be anxiety-provoking. The key is finding the right balance for your own priorities and risk tolerance. If you go in with realistic expectations about the challenges, develop financial discipline, and work on building a strong network and client base, freelancing can be an incredibly rewarding career choice. But if stability and security are most important, a traditional job may be a better path. Only you know which option will allow you to do your best work while leading a life you find meaningful. The possibilities are there if you have the courage to pursue them.