Currently, over 57 million Americans are freelancers. And it’s predicted that by 2027, the American workforce will be predominantly freelancers.
Are you thinking of entering freelance employment? Then there are 5 key things every freelancer should know.
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1. You Need Good Self-Discipline
Yes, it’s true you get to make your own hours. While that may seem like heaven, it may backfire for some.
Seeing as many jobs pay by the project and not by the hour, you can lose out on pay if you don’t keep yourself motivated. You need good self-discipline to crank those projects out; or else, you don’t get paid.
For some people, working at home is tough because there are so many distractions. If this is the case for you, you might want to consider getting a laptop and working in a coworking space to stay on task.
2. Paychecks Aren’t Stable
One small downside to freelance work is your paychecks aren’t stable, like with a traditional 9 to 5 job. Sometimes, you’ll have tons of money streaming in. Other times, you won’t make a single penny in a week, or even a month.
Because of this, you want to have a decent savings account. That way, you have something to rely on if work ever dries up temporarily.
3. The Pay Will Probably Be Lower
If you’re going into freelance employment because you think you’ll make millions more than at a desk job, you’ll probably be disappointed.
In most cases, the pay will be lower than a traditional job. However, you won’t have to commute, buy work clothes, or eat out as often. All that money saved will make up for the lower “salary” you’re earning.
4. You Won’t Have Amazing Benefits Anymore
One of the main perks of having a traditional job is you usually get amazing benefits, plus a pension. Freelancing doesn’t offer any of that, so you’ll have to take all those matters into your own hands.
Because of this, you have to be very responsible, detail-oriented, and good at planning for the future. Your retirement will depend solely on how well you manage your finances now.
5. You Should Generate Your Own Pay Stubs
Considering you don’t get a paycheck from an “employer,” you’ll have to keep a close eye on your income all by yourself.
Thankfully, there are ways for you to make your own pay stubs to simulate paychecks. By creating your own paycheck stubs, not only will it be easier for you to file taxes and look up your financial details, but it’ll also make things simpler when you apply for things like apartments or even mortgages.
Find Success in Freelance Employment With These Tips
Becoming a freelancer can be scary, but it can also be very freeing. So long as you do your research and follow these tips, freelance employment can be a very rewarding experience for you.
Need more tips on where to go with your career? Then check out our other blog posts now!