The world of freelancing has become quite popular these days, especially since the pandemic, as more and more people are opting to work for themselves as independent contractors.
There are many benefits to freelancing, including the freedom to choose your projects and the ability to work from anywhere at any time.
However, there are also challenges to overcome as a freelancer. We explore the benefits and challenges one has to go through as a freelancer and provide a beginner’s guide for those considering it.
Benefits of Freelancing
Flexible working hours One of the main benefits of freelancing is the freedom and flexibility it offers. You can choose which projects you take on while working as a freelancer. This allows you to create a schedule that works best for you, whether working full-time or part-time, during the night or day.
Work from anywhere freelancers can work from anywhere in the world as long as they have a reliable internet connection. You can work remotely, saving you tons of money on transport and other expenses.
Income from multiple sources You don’t have any cap on how much money you can make. As a freelancer, you are responsible for setting your own rates and negotiating with clients. It may be pretty intimidating initially, but once you become an expert, you can earn way more than you did as an employee. A 2017 report states that freelancing coders and software developers earn nearly $1000/ hr.
Be your own Boss As a freelancer, gone are those days when you have to report to someone. In the corporate world, you may have had to cross through bureaucratic waters to get to where you want, but say goodbye to that in the freelancing world. Does the idea of heading to a spin class at noon and then logging back online afterwards excite you? Or does travelling while still making money align with your lifestyle? If yes, then freelancing will suit you well.
Challenges of Freelancing
Lack of steady income One of the biggest challenges is the lack of steady income. As a freelancer, you are responsible for finding and securing your projects, which may be a time-consuming and uncertain process. This can make it difficult to plan long-term and budget, as you never know when you will get your next gig
Lack of job safety and benefits You do not have the same level of job security and benefits as an employee; you will not receive healthcare or retirement benefits. These now become added expenses to your life that didn’t exist before. Being self-employed, you need to fully support the cost of health and dental insurance, business taxes and contributions to super retirement. This can all add up and needs to be calculated into your hourly or flat rate fees.
Lack of support Another challenge is the lack of a support system. Freelancing can be a lonely journey as you do not have an HR or a boss to turn to for guidance or help with issues, which can make it difficult to get feedback or advice on your work.
Despite these challenges, there are ways to overcome and succeed as a freelancer.
Diversify your income One way is to diversify your income streams by taking on various projects and clients. Having additional sources of income mitigates the uncertainty of freelance work.
Networking Additionally, networking, building relationships with other freelancers or joining other freelance communities can provide a sense of community and support, as well as lead to other opportunities.
Staying organised and effectively managing time Finally, it is important to stay organised and manage your time effectively as a freelancer. This can include setting boundaries to ensure you have time for work and personal life, as well as using projected management tools to stay on top of your projects and deadlines.
