There are a lot of benefits that comes along with freelancing as well as a lot of pitfalls.
Let’s start with the good stuff:
1.You are your own boss. Freelancing allows you to make your own schedule, take on the projects you like and with people you like to work with.
2.You have better control of your tax with tax deduction benefits.
3.Depending on the clients, you can probably work remotely at the comfort from your home office.
4.You help reduce carbon footprint by not having to drive to work.
5.The hourly rate is a lot higher than a full time hourly rate. Essentially your hours have a higher market value.
6.You get to customize and setup your own hardware and software and so you can have the most current bells and whistles.
7.Increase productivity with less distraction from the typical office chatter of a full-time job.
8.Though tight deadlines are often part of the freelance equation, you don’t have someone constantly hovering your shoulders.
9.You get to work with interesting clients in exciting projects from all over the world.
10.Your vacation time is entirely up to you. You can take off whenever you want which give you full control over work/life balance.
Here comes the pitfalls:
1.Work can be inconsistent. You may have weeks off between jobs. It can feel scary during the lean months.
2.Depending on your monthly burn rate, you probably need some significant savings before leaping into contract work.
3.It is difficult to get a mortgage loan as a freelancer.
4.No medical, 401k match, bonuses that typically comes with a full time job.
5.Hardwares and softwares and anything else are out of pocket costs.
6.Juggling and scheduling multiple projects can be challenging and draining should you choose to take on more than one project.
7.Working around the hours is typically, sometime late nights and weekend to meet certain deadlines. Just make sure you charges more for expedite service.
8.Jobs can come in randomly with quick turn around, so you need to be flexible. Or you can always turn it down if you can afford it.
9.Part of striving or surviving the freelance life require extra time devoted to acquiring new clients by marketing, promoting and simply meeting new people.
10.Since you are the center of the business, you are responsible for administrative work like invoicing, cashing checks, and keep track of your taxes.
I have experienced both having a full time job and also the freelance lifestyle. I think freelancing has many perks and the positives outweigh the negatives. Depending where you are in your life and what your risk tolerance is will help determine if freelancing is the way to go. But one thing for sure that is a huge benefit is that it keeps you hungry to push harder and not be complacent. At the end of the day, if freelancing doesn’t work out, you can always take on a full-time job.
Comments
Post a Comment