A freelancer is an individual who works for themselves. Rather than being employed a company, freelancers contract out their services. Freelancers work in a variety of fields, including writing, photography, consulting, and many others. Freelancing, like any job, has its benefits and drawbacks, and it is not for everyone.
Working as a freelancer has numerous advantages. Many people fantasize about being able to work from home and avoid having to commute. Telecommuting or working for yourself allows some freelancers to work in their pajamas. Freelancers can often set their own hours, allowing them to fit their work around their families rather than the other way around. Instead of adhering to office hours, people who prefer to work late or early have the freedom to do so.
Many freelancers believe that not having to commute or attend staff meetings gives them more time to work. Freelancers get to be their own bosses, deciding which jobs to take, negotiating contracts, and setting their own rates. Depending on the person and the situation, this can be either liberating or terrifying. One freelancer may find that she has enough work to keep her happy and prosperous, whereas another may find that work comes in slowly.
Because there is no employer withholding taxes or retirement funds, a freelancer must have good budgeting skills in order to set aside enough money to pay taxes and retire. If freelancers forget to save for taxes or underestimate the amount of taxes that will be charged at the end of the year, they will be in for a rude awakening.
Another issue for freelancers is health insurance. Many people get their health insurance through their place of employment. When you’re part of a large group, it’s easier to get a good policy, and employers often cover not only their employees but also their spouses and children. Freelancers, on the other hand, are usually responsible for obtaining their own health insurance. Preexisting health conditions can make it difficult to find health insurance, and spouses and children will incur additional costs. More than one freelancer has been known to return to full-time employment in order to keep their health insurance.
Without the accountability of a manager or other employees, some people struggle to stay motivated. All of these options must be weighed against each other when deciding whether or not to freelance. The strength of the benefits or drawbacks of freelancing is determined a person’s personality, family situation, skills, field, and financial management.