Recent events have created a surge in the number of people who wish to work from home. The initial lockdown caused by the virus created a new work environment, one that’s remote. As a result, many of these same individuals now prefer it instead of returning to the office. Before making the switch, make sure that you understand the risks and benefits that come with the life of a freelancer.
Source of Income
One of the most significant changes that come with self-employment is achieving a steady income. Unlike working for a company where you receive a fixed paycheck, your pay will vary. One week you may exceed expectations, while another disappoints. This fluctuation can leave you short of cash to pay monthly expenses. You may resort to using credit cards to fill in the gaps or apply for a loan through lenders with less stringent requirements for approval, like one-hour payday loans.
Evening Out Income
With income highs and lows, it’s critical to create a household budget and stick to it as a freelancer. This regimen will allow you to continue to pay your bills on time and have money in reserve for unexpected expenses. Additionally, manage freelance finances by setting aside a portion of every paycheck for taxes. This will ensure that you’re not scrambling to pay taxes when the year is out.
Paying Out-of-Pocket
Currently, your employer pays you if you get sick and offers paid vacations. They may also provide additional benefits such as health and dental care and a retirement fund like a 401k. While you can purchase them, individual policies for these benefits can cost upwards of a thousand or more each month.
Working Independently
As a freelancer, it becomes your responsibility to find new jobs and clients, and you will need to bill companies for payments. Initially, this can be challenging. There’s a lot of competition in the freelance world, and unfortunately, not all companies looking for help are reliable or provide a steady source of income. Many have short-term contracts. When they expire, you may find yourself without income. You must remain focused, committed, and resourceful to be successful.
Setting Up the Home Office
Besides finding health and retirement benefits, you’ll also need to spend money to set up your home office. A desk with extra space, an ergonomic chair, a fast computer, and a filing cabinet are a few of the basic needs. You’ll also need high-speed internet to avoid getting bogged down, allowing you to complete projects quickly.
Isolation
Working at home can mean many hours of isolation. You won’t have co-workers to talk to in between assignments. For some, being alone can bring about anxiety and depression. It can also cause your mind to wander, affecting your ability to work. The good news is there are plenty of freelancers in the same position. Joining one of the available online communities will allow you to interact with others in the same business who share your empty-house feelings.
Home Distractions
For some, working from home is impossible because of the distractions. You may have younger children not yet in school, pets, or noisy neighbors. It’s important to talk with the family prior to starting your alternative career path. Designate and set up a room which you dedicate as your home office. Simply close the door and put a sign up when you are at work. Many freelancers with years of experience working from home play music to create background noise.
Improved Quality of Life
As a freelancer, you create a schedule that works for you. You’ll no longer travel to the office and spend money on things like professional clothing, gas, lunch, and car repairs. If your children have extracurricular activities, you can attend. Vacations are anytime, and if you get sick, you can stay in bed. Your life suddenly becomes your own.
Life as a freelancer can prove rewarding. Just consider everything, both the pros and cons, before turning in your resignation.
