Have you long dreamed about being your own boss one day? Then going freelance might be a great option for you.
Whether you decide to be a freelance writer, a freelance marketer, or a freelance data entry specialist, there are so many freelance jobs to choose from. The only thing you’ll need to do is pick the right one for you.
You’ll also want to consider a few things before going freelance. It’s a good idea to make sure you’re ready to do it before diving headfirst into the world of freelancing.
Here are nine things you’ll want to think about before working freelance.
1. Do You Enjoy Working by Yourself?
One of the things that a lot of people are finding out right now as a result of the coronavirus pandemic is that working at home isn’t all it’s cracked up to be. Not everyone is cut out to spend long hours working by themselves with no one else around.
Before going freelance, you should think about whether or not you fall into this category. You need to be able to work independently when you’re self-employed. Otherwise, you’re going to run right back to your current workplace in no time.
2. Are You Able to Motivate Yourself to Work?
In addition to working by yourself for the most part, you also need to motivate yourself when you’re self-employed. There isn’t going to be anyone around to tell you that you need to finish up a project or start generating leads for new clients.
It’ll be up to you to find ways to motivate yourself day in and day out. If you don’t think you’re cut out to do this, becoming self-employed is going to be the wrong move for you.
3. Is There Somewhere for You to Work in Your Home?
When you’re trying to figure out how to go freelance, one big thing you should think about is where you’re going to set up shop as a freelancer.
Yes, you can get away with freelancing out of a coffee shop for a certain amount of time. But if you’re going to freelance full-time for the foreseeable future, you’ll need a home office setup.
Make sure you have enough room to put a desk, a computer, and whatever else you’ll need to work in your home.
4. Can You Generate Enough Work?
While setting up as a freelancer, you’ll need to consider what services you actually want to provide to people and companies. You’ll also need to start drumming up work that you can do once you begin freelancing full-time.
Without enough work at your fingertips, you’re not going to make it for more than a month or two as a freelancer. It’s essential for you to turn over every stone in an effort to generate work for you to do.
5. Do You Have Some Savings Set Aside for Slower Months?
When you’re working for a company, you don’t have to worry about how much you’re going to bring in every month. You’ll get paid pretty much the same amount of money month in and month out.
This isn’t always the case for freelancers. Some months, you might make way more money than you’re making now. Other months, you might make next to nothing.
It’s good for freelancers to have cushioned savings accounts, if possible. This will make the slower months way more manageable than they would be otherwise.
6. Do You Need Health Insurance?
Almost 50% of U.S. workers get health insurance through their employers. This obviously won’t be an option for you if you don’t have an employer.
You might be able to obtain health insurance through your spouse if you have one. But if this isn’t a possibility, it’ll be up to you to get your hands on health insurance yourself.
You’ll need to find the best self employed health insurance policy you can and make sure it’s affordable since you’ll be footing the bill.
7. Are You Prepared to Pay Your Taxes on Your Own?
Those who work for companies typically ask their employers to take taxes out of their paychecks so that they’re not left with a big tax bill every April.
Since you won’t be able to do this, you’ll need to keep tabs on how much money you make as a freelancer and how much of it you need to set aside to cover your tax bill. You’ll also need to keep business-related receipts so that you can deduct the expenses you rack up as a freelancer on your taxes.
This can be too much work for some people to take on. There are also some people who don’t do a good job saving up tax money and struggle to foot their tax bills because of it. Make sure this isn’t going to be you.
8. Can You Save Up Enough Money for Retirement?
Outside of getting your own health insurance and taking care of your own taxes, you’ll also be on your own when it comes to saving money for retirement.
The good news is that you can start a retirement account yourself without an employer. But the bad news is that you won’t have an employer matching your retirement contributions along the way.
This could stop you from saving up enough money for retirement. It might make staying at your current job a better option than going freelance.
9. Is Going Freelance Going to Impact Other Areas of Your Life in a Negative Way?
The second you start freelancing, it’s going to be to you—and only you!—to keep your finances afloat. You’ll have to do whatever it takes to generate enough income to continue being your own boss.
You might have to make sacrifices in your personal life to ensure this happens. This could mean missing your child’s sporting events or spending less time with your spouse.
Think about ways in which starting self-employment might have a negative impact on your life. If they’re going to be too much to take, freelancing might not be in your best interests.
Are You Ready to Become Your Own Boss by Going Freelance?
In the immediate aftermath of the coronavirus pandemic, something tells us that more people than ever before are going to be going freelance. Will you be one of them?
Ask yourself the questions listed here to find out if freelance life is for you. They should help steer you in the right direction as you move forward with your career.
Want to learn more about freelancing and the benefits that come along with it? Browse through the informative articles on our blog.