Is Freelancing the Right Career Path For You?

Moving into a freelance career is excellent for individuals who crave independence. Freelancing lets you choose whether to take on short or long-term projects and allows you to branch into new areas rather than staying in one department.

According to a Freelancers Union study, about 57.3 million Americans are doing freelance work (up from 55 million in 2016), comprising 36% of the entire workforce. Being a freelancer was deemed one of the hottest career changes to consider in 2022. But this career path comes with perks and a few challenges.

What Is a Freelancer?

A freelancer earns money on a per-job or per-task basis, usually for short-term work as an independent contractor. A freelancer tends to work in the creative, skilled, or service sector. These sectors include film, art, design, editing, copywriting, proofreading, media, marketing, music, acting, journalism, consulting, event planning, photography, tutoring, and many more.

Individuals can find freelance jobs through word of mouth, referrals, and networking. But these jobs are also posted online, including LinkedIn, Craigslist, and Fiverr. 

Advances of Being a Freelancer

The number one advantage of becoming a freelance worker is flexibility. Freelance workers can choose their hours and decide when and where they want to work. This career choice also allows individuals to select projects that match their skills and work with clients they choose.

Freelancers set their rates and have greater control of their earnings. Individuals can work a 9 to 5 job and start freelancing on the side, acquiring multiple revenue streams. 

A traditional employee has a set job description and generally doesn’t stray from the role they were hired for. Individuals don’t get a chance to expand their skills and learn new things. One of the greatest benefits of freelancing is the opportunity to work on more specialized projects, try out new skills, and expand knowledge in different areas. Different day-to-day schedules mean never getting stuck in the monotony of traditional office jobs. 

Many companies nowadays hire freelancers rather than hiring and training in-house employees, saving large amounts of money annually. Therefore, there are always jobs available for freelancers. 

Freelancers’ earnings depend on how hard they work, so they can virtually secure their revenue streams without risking their job or worrying about getting fired. 

Finally, freelancing allows individuals to grow and expand at their desired pace. They get to decide every aspect of their work life, allowing them to either start slowly or expand rapidly. 

Disadvantages of Being a Freelancer

With ultimate control comes additional responsibilities. A freelancer is a business owner that needs to stay on top of taxes, invoices, and payments received, find health insurance, and buy every piece of software and technology you need to complete your work.

Many freelancers also risk feeling isolated if they work from home all the time and have little interaction with the outside world. 

Focusing on work and taking on countless responsibilities pushes individuals away from prioritizing themselves and their mental health. The more isolated someone is, the more they become trapped in their thoughts. Life can get lonely very quickly.

Freelance work also requires hustling 24/7 for new gigs to keep the cash flow consistent. Some months will be full of work, while the following month may be full of nothing. Freelancers may rely on a consistent contract with one client but find that they suddenly don’t need them anymore. 

Freelancing requires good money management and constant sourcing of new clients.

The Internal Revenue Service (IRS) considers freelancers to be self-employed individuals. And because a company does not own freelancers, they do not enjoy benefits such as health insurance or retirement plans. 

Therefore, paying income taxes becomes the sole responsibility of the freelancer. Freelancers are responsible for saving the correct amount of money to pay a specific tax each year. In the United States, there is a 15.3% self-employment tax that freelancers are responsible for paying in addition to income tax. This tax accounts for both Social Security and Medicare.

There are many pros and cons of being self-employed. Freelancing can be a great choice that enables individuals to do work they are passionate about while enjoying freedom. Conversely, freelancing can be overwhelming and isolated at times. The decision to become a freelancer depends on the type of person someone is and what they value overall.