Before taking a leap into the freelancing industry, there are important things to consider. There may be those who found financial stability doing freelancing work but it is not without sacrifice and hard work. With the popularity of the gig economy, more people are tempted to be self-employed rather than the traditional 9-5 jobs.
Learn the pros and cons of a freelancing job before making a major career decision. Explore if the benefits outweigh the drawbacks.
Pros of Freelancing:
- Flexible Schedule: Unlike traditional jobs where you have to get up early and be at the office before 8 or 9am, freelancers have more freedom with their schedule. You can choose to work with a client depending on your preferred schedule or time zone, if you cater for international clients.
Such flexibility is enticing for other people as they get more work and life balance. If you are a parent raising small kids, this set-up offers practicality and convenience. Whereas in a traditional office work, you are confined inside your office unless your job requires field work.
- Work from Home: With the flexibility in schedule also comes the freedom to work anywhere you want. For digital nomads, as long as they get a decent internet connection and they can bring their laptops with them they are set.
Work from home also lessens the monthly cost incurred from commuting to and from the office. You don’t only get to save money, you also get to save your energy and your time from the daily commute.
- Increased Control: If you choose to become a freelancer, you can choose on projects which you want to bid and work on. Having more control on your work means that you choose the job that aligns well with your skill set and experience.
- More Earning Potential: The possibility of earning more from freelancing is higher than working in a traditional job. Freelancers can choose to work with a number of clients that they can cater to. In addition to taking on more projects, freelancers also have more control in charging higher rates for their clients.
Now that we have discussed the benefits of being a freelancer, you also have to learn what are the challenges and drawbacks.
Cons:
- Unstable Income: You don’t have a fixed monthly income unlike regular employees who know how much to expect every pay day. There may be months where you would be catering to 5 clients all at the same time. But, there could also be days where you won’t have any projects at all. Your income will vary depending on the projects you are working on.
As you cater to different clients with different rates, your income per month also varies. There could be months where you are earning more and months with less earning.
- Lack of Benefits: Another downside of being a freelancer is the lack of benefits such as medical health insurance, paid time off, and retirement plans. You will have to pay on your own or save up for your retirement plans.
- Self-Motivation: If you are working from home, the environment is different. There are plenty of distractions around. You need to be focused and determined. If not, you are not going to finish any of your projects on time.
- Isolation: If you are someone who prefers working alone, this is not considered a setback. But if you are someone who is sociable and is around people, you need to consider if freelancing is for you. Most freelancers work from home and are isolated from the usual office mates that traditional jobs have.
Overall, freelancing is not as easy as most people thought it to be. There are benefits in freelancing such as freedom, flexibility and high potential earning. On the other hand, there are also setbacks for freelancers. The lack of benefits and unstable income should also be considered as deciding factors. Before handing over your resignation paper, take time to think it through. Carefully evaluate if freelancing is the right career choice for you.