Do you want to be your own boss and work-at-home every day? Are you looking forward to establish a business of your own? Both questions will determine if you are ready to enter the freelancing industry and become an independent contractor.
To help you decide, here are the pros and cons of freelancing:
You are the CEO
You call the shots! You can set your own working hours as well as where you want to work. You can work continuously until you complete your tasks or divide them into manageable hours. You can sleep, eat and go out whenever you want, as long as you finish your daily job. You can also select what projects you want to do.
You Maintain a Work-Life Balance
The flexibility of schedules brings more time for yourself and for your family. The extra hours are precious to maintain physical, emotional, and mental well-being. You also have time to pursue your hobby or passion. You have more freedom.
You Earn More
You have all the time to increase your earning potential and avoid the risk of getting excessive loans. Reports showed that people who are into freelancing business earn 48% higher than full-time employees. The more drive you have, the higher your income is.
You Save More
Because you do not have to commute daily or eat lunches/snacks outside, you can save money.
You Pay Lesser Tax
Freelancers only pay self-employed tax and pay IRS four times annually. They can also avail tax deductions for internet expenses, office, meal or travel.
You Become Versatile
You learn to tackle different types of projects and work for different clients or delegate multitasks. The experience and expertise that you gain will help you in the future if you decide to start your own online business.
You Have No Job Security
You have work when your clients have available tasks for you. To ensure a steady job, find a long-term contract that will give you a steady stream of income. You can also get multiple clients.
You Stop Receiving Company Benefits
No maternity or paternity leave, paid vacation or time off, and bonuses. You need to pay for your health insurance or retirement plan independently.
You Risk Not Getting Paid
It is one of the nightmares in the freelancing industry. Some clients do not pay on time or do not pay at all.