BECOME A FREELANCER AND EARN MORE

Are you tired of waking up everyday, sitting in traffic, and listening to an unappreciative boss screaming at you, or putting you down and saying that you aren’t doing enough. Do you also have a set of skills that are unique and could be used to make money on your own?

If you can answer yes to both of those questions, then congratulations. You may be ready to begin thinking about embarking on the exciting and fulfilling freelancer journey.

To help guide you along, here is the Ultimate Guide to Freelancing.

WHAT IS FREELANCING?

A freelancer, or independent contractor, is a self-employed individual who doesn’t have to commit to a single, long-term employer. Instead, they work independently for several different companies or clients. Freelancers typically charge by the hour or day and are not required to register as a business if they operate under their own name.

It’s often believed the term meaning a freelancer was used first in Sir Walter Scott’s classic Ivanhoe (1820), in which Scott stated, “I offered Richard the service of my Free Lances, and he refused them—I will lead them to Hull, seize on shipping, and embark for Flanders; thanks to the bustling times, a man of action will always find employment.” In other words, these persons were mercenary’s who offered their services to the highest bidder.

However, there was an earlier example of the term in 1809 by Thomas N. Brown’s, The Life and Times of Hugh Miller by stating, “But when the battle was hottest, Hugh Miller was a loyal combatant, not a free lance.”

Today, the term is often associated with writers, photographers, editors, programmers, website designers, and professional consultants, as well as many other professional services.

According to Forbes, the best freelancing gigs are:

Marketing - Project managers, Marketing coordinators, or Marketing managers can make between $46 to $52 an hour.

Business Project Management - Project Manager, Process Analyst are estimated to make $34 to $46 an hour.

Web Development - Creating, testing, or providing support for software or apps can result in earnings of $36 to $43 an hour.

Writing - Bloggers, copy editors, and content managers can make $25 to $30 an hour, which makes freelance writing a lucrative option for wordsmiths

Accounting - It’s estimated that freelance accountants can earn between $16 to $30 an hour.

Insurance Inspection - Gathering information, such as photographs, and writing insurance reports can earn approximately $28 per hour.

Teaching/Tutoring - Teaching online classes or being a tutor can bring in $20 to $28 an hour.

Social Media - Being a community manager or social media coordinators can result in $20 to $25 an hour.

Graphic Design - Website and application designers are able to make around $21+ per hour.

Administrative Assistant - Professional assistants can earn between $17 to $20 an hour.

PROS AND CONS OF FREELANCING

Whether you’ve recently been laid-off, your tired of the daily grind, or you just want to go into business for yourself, starting a freelance business offers a number of incredible benefits that most employers just can’t compete with.

Advantages of Freelance Work

The pros of being an independent contractor include:

You’re the Boss - This means that you can choose when and where you work. If you’re a night owl, you can work the entire night and sleep in until noon without ever having to leave the house. Additionally, you can also select what projects you want to work on. If you’re a photographer, you may dread working weddings. This means that you don’t have to accept a wedding freelance job if you don’t want to, but you’ll be able to select only the events or situations that you prefer to take pictures of.

You Can Make More Money - If you have the drive, freelancers have the potential to make more money than the average person. Some reports have found that freelancers actually earn 45% more than the average full-time employee.

Lower Taxes - Federal and state taxes are not withheld from your paychecks and freelancers pay the IRS directly four times per year, including the self-employed tax in place of social security. They also have access to tax deductions like office, travel, meal, and internet expenses.

Work-Life Balance - Between flexible schedules, and the fact that only 29% of freelance workers put in more than 40 hours per week, freelancers have an incredible work life balance.

Happier, Healthier - Studies have found that freelancers are happier and healthier, both mentally and physically, than traditional workers.

The Disadvantages of Freelance Work

While there are a number of incredible benefits surrounding freelance work, there are some disadvantages that should be considered.

No Job Security - If your clients don’t have any work for you, then you can’t make any money. Even when you’re an employee, you always have work to complete unless the employer goes out of business or you’re laid off.

Inconsistent Work - There are months when there’s a ton of work to complete and the paychecks are more than you expected. However, the work may dry up and the next month you’re only making half of what you made the previous month. As an employee, at least you know how much you’re paycheck is going to be each month so that you can budget accordingly.

There Are No Benefits - One of the perks of working for someone else is that the employer will handle all of your health or retirement benefits or bonuses like paid vacations or profit sharing. Purchasing your own health insurance is often more expensive than what is offered from an employer.

You Have to Handle Accounting - Taxes, bookkeeping, paying bills, and managing cash flow is up to you. While there is readily available software to assist you with your accounting, it’s an additional task that traditional employees do not have to be concerned with.

You Risk Not Getting Paid - It’s not uncommon for independent contractors to have difficulty getting paid for their services. Some clients either don’t pay on-time or they don’t pay at all. Unlike traditional employees where you always know that a paycheck will arrive.