In today’s job market, more and more people are turning to freelance as a way to make ends meet. It can be a great way to earn some extra money, but there are also some downsides to freelancing that you should be aware of before you take the plunge.
If you’re not careful, freelancing can quickly become a full-time job, which may not be what you’re looking for. In this guide, we’ll go over some of the pros and cons of freelancing, so you can decide if it’s the right career move for you.
What is Freelancing?
Freelancing is a type of work where you are not employed by a single company but rather work for yourself and take on various projects from different clients. Freelancers can work in various fields, such as writing, graphic design, web development, and more.
There are a few different ways to find freelancing work. You can search for projects on online job boards, approach companies directly, or even network with other freelancers to find work. The freelance career path is often seen as a great way to get started in your chosen field without committing to a full-time job.
The Pros of Freelancing
Let us face it, and the traditional workforce isn’t for everyone. In today’s gig economy, more and more people are choosing to freelance and work on a contractual basis instead of working a 9-5 job. And there are plenty of good reasons why.
Freelancing offers a lot of freedom and flexibility you can’t find in a traditional. Let’s read on to find out more.
1. You’re your own boss
When you freelance, you’re in charge of your own work schedule and workload. This can be a great way to take control of your career and have more flexibility in your day-to-day life. Suppose you need to take an hour or two off for a doctor’s appointment in the middle of the day.
It is no big deal if you make up the time later or get your work done ahead of time. You wouldn’t be able to do that without a traditional job. In the work life balance category, freelancing has the upper hand.
2. You can work from anywhere
Another great thing about freelancing is that you can work from practically anywhere. No problem if you want to take your laptop to the local coffee shop or park. You can work from wherever you want if you have a good internet connection.
This is perfect for people who don’t like being tied down to one location or want the freedom to travel and work simultaneously. The office politics and water cooler small talk are also a thing of the past when you freelance. As long as you can get the work done and meet your deadlines, no one will care where or how you do it.
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3. You can choose your own projects
When you’re a freelancer, you get to choose which projects you want to work on. This means you can hand-pick only the projects that interest you and are a good fit for your skillset. You also have the freedom to say no to projects that aren’t a good fit or that you don’t have time for.
This can lead to a lot less stress and more job satisfaction overall. When the employee benefits are good, it can make freelancing a very attractive option.
4. You can set your own rates
Another pro of freelancing is that you get to set your own rates. This is great news for anyone who feels underpaid in their current job. When you freelance, you have the power to negotiate and choose rates that you’re comfortable with. Of course, this also means more financial risk since you may not always have a steady work stream.
But for many people, the pros outweigh the cons when setting your rates. Different platforms like Fiverr, Guru, and PeoplePerHour allow you to set your service rates. Always remember to do your research before deciding on what rates to charge. If you are a social media expert, research the average rates people in your area are charging for similar services.
5. You can learn new skills
When you freelance, you often have the opportunity to learn new skills. This is because you’re constantly working with different clients and projects, which means you’re always expanding your skill set. For example, you might pick up a new programming language while working on a website design project for a client.
Or, if you’re a writer, you might learn more about a topic while working on an article for a new client. Not only is this a great way to improve your resume, but it’s also a great way to keep your mind sharp and prevent boredom. Few things are more boring than repeatedly doing the same thing, so the opportunity to learn new skills is a freelancing pro.
6. You can build your own brand
Freelance business is all about building your brand. When you’re a freelancer, you are your own business. It is up to you to market yourself and build a positive reputation. While this can be a lot of work, it can also be very rewarding. Having a strong personal brand gives you more control over your career and can command higher rates. If your paid time off needs to be flexible, you can make that happen. You are in charge of your career, and that’s a big advantage.
7. You can take on multiple clients
One of the great things about being a freelancer is that you can usually work on multiple projects at the same time. This is perfect for anyone who likes to stay busy or wants to make more money. While some people might prefer to focus on one project at a time, others find that working on multiple projects keeps them motivated and helps them stay organized.
Suppose you’re a web designer. You could work on designing a new website for a client while creating some graphics for another client’s social media account. Taking on multiple projects can keep your portfolio diverse and your skills sharp.
Unlike those job seekers who are looking for 9-5 job security, freelancers can work with many clients simultaneously, which can lead to a more interesting and well-rounded career.
8. Get creative and pivot more easily
When you work for a traditional company, it is often difficult to make changes or try new things. But when you freelance, it is much easier to be creative and pivot when necessary. If you have an idea for a new project or a better way to do things, you can usually implement it quickly. This is because you’re not bound by bureaucracy or red tape. You can make decisions quickly and adapt to changes easily. This is a big advantage if you like to work in a fast-paced environment or if you’re constantly trying to improve your skills. As the cash flow can be irregular, it’s important to set some savings aside as a buffer. This can help reduce stress levels and give you more financial security.
The Cons of Freelancing
Now that we’ve covered some potential benefits of freelancing let’s take a look at a few drawbacks.
1. You may have to sacrifice job security
There’s no guarantee that you’ll have work tomorrow when you’re a freelancer. You may have a great month and then a slow month. This can be stressful and make it difficult to plan for the future. Suppose you have a medical emergency and can’t work for a few weeks. How will you pay your bills? If you’re employed full-time, you may be able to take advantage of sick leave or short-term disability benefits. But as a freelancer, you’re on your own. Even if you have savings, you may need to dip into them to stay afloat.
2. You’re responsible for your own health insurance
If you’re employed full-time, your employer is likely providing you with health insurance. But as a freelancer, you’re responsible for obtaining your own health insurance. This can be costly, especially if you have a pre-existing condition. In the United States, you may be able to get health insurance through the Affordable Care Act. But if you live in another country or your income is too low, you may not be eligible for this program. Over the past decade, the cost of health insurance has been rising steadily, so it’s important to factor this into your budget as a freelancer. Your retirement savings are also your responsibility as a freelancer.
3. You may have to pay more taxes
When you’re employed full-time, your employer withholds taxes from your paycheck. But as a freelancer, you’re responsible for paying your own taxes. This means that you may have to pay more taxes than you would if you were employed full-time. And if you don’t pay your taxes on time, you may be subject to interest and penalties. Usually, you have to pay taxes quarterly. But if you’re expecting to owe more than $1,000 in taxes for the year, you may need to make estimated tax payments.
4. You may feel isolated
When you work from home, it can be easy to feel isolated. You may miss the social interaction that comes with working in an office. And if you’re used to working in a team environment, you may find it difficult to adjust to working alone. To combat isolation, you may need to make a concerted effort to socialize with friends and family. You may also want to join a co-working space or meetup group for freelancers. When the work starts to feel isolating, these types of social interactions can be a great way to stay connected. If you said, “I need to make a concerted effort to socialize with friends and family members,” you could say, “Making an effort to socialize with friends and family members can help reduce feelings of isolation.”
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5. You may have to work long hours
A lot of freelancers end up working long hours, especially when they’re first starting out. This can be tough to juggle if you have other commitments in your life. If you’re not careful, you may end up burning yourself out. To avoid this, it’s important to set boundaries and stick to a schedule. It has been suggested to create an “office hours” schedule, where you set specific times that you will work and stick to them. Sometimes, working long hours may be unavoidable in a freelance job, but it’s important to take breaks and give yourself time to relax. Just like the other self-employed people, freelancers need to make sure that they work on their business, not just in it.
6. You may have to deal with difficult clients
Not all clients are going to be easy to work with. Some may be demanding, others may be unresponsive, and others may be outright rude. Dealing with difficult clients can be one of the most challenging aspects of freelancing. However, it’s important to remember that you don’t have to deal with bad behavior. If a client is giving you grief, it’s okay to walk away from the project. Most of the time, it’s simply not worth the hassle. Usually, clients with different attitudes will be 100% better than one problematic client.
7. You may miss out on company perks
You usually get access to some pretty great perks when you work for a company. Think of free snacks, gym memberships, and paid vacation days. Those sorts of perks are off the table when you’re a freelancer. This can be one of the biggest downsides to freelancing, especially if you’re used to having them. Of course, there are some upsides to this as well. For instance, you don’t have to deal with office politics and can design your work schedule. Whether you own freelance business or not, you may find that the lack of company perks is a big downside.
8. You may have to hustle for work
When you’re a freelancer, finding work can sometimes be a challenge. You may have to constantly look for new clients and projects. This can be time-consuming, and it may mean you must put in a lot of extra effort to find work. However, there are some ways to make the process easier. For instance, you can create a portfolio of your work or join a freelancer platform like Upwork. By taking some proactive steps, you can make it easier to find freelance jobs. A few things that you should keep in mind while hustling for work are:
1. Don’t be afraid to cold pitch
2. Get involved in the freelance community
3. Create a strong portfolio
4. Stay up to date with your skills
5. Be proactive in your job search
6. Be willing to negotiate rates
7. Don’t be afraid of networking
8. Keep hustling!
Final Words on the Pros and Cons of Freelancing
You usually get access to some pretty great perks when you work for a company. Think of free snacks, gym memberships, and paid vacation days. Those sorts of perks are off the table when you’re a freelancer. This can be one of the biggest downsides to freelancing, especially if you’re used to having them. Of course, there are some upsides to this as well.
Freelancing has its pros and cons. However, it’s important to remember that no situation is perfect. There will always be some downsides, no matter what you do. The key is to find a balance that works for you. If you’re thinking of start freelancing, then remember the only person who can decide if it’s the right move for you is you. In a freelancing business, you own hours, days, and workload.
We hope this article helped you learn about some of the pros and cons of freelancing. If you have any questions or comments, please feel free to leave them below.
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