Freelancers work for themselves, setting their own hours and choosing their own jobs. They enjoy the freedom of working from home but must budget for taxes and find their own health insurance. Motivation and accountability can be a challenge.
A freelancer is a person who works for himself. Rather than being employed by a specific company, freelancers hire their talent. Freelancers can be found in all fields – writing, photography, consultants and many others. As with any job, freelancing has its advantages and disadvantages and is not suitable for everyone.
There are many advantages to working as a freelancer. Many people dream of working from home and avoiding commuting. Some freelancers may indeed work in their pajamas, telecommuting or working on their own. Freelancers often set their own hours, making their work lives revolve around family life rather than the other way around. People who prefer to work very late or start very early have the freedom to do so instead of working regular hours.
Many freelancers feel they have more time to work if they aren’t required to commute or attend team meetings. Freelancers are their own bosses, choosing jobs to hire, negotiating contracts and determining how much they pay. This can be liberating or terrifying, depending on the person and the situation. One freelancer might feel that she has enough work to keep her happy and rich, while another might find work coming in too slowly.
Since there is no employer to withhold taxes or retirement funds, a freelancer needs to have the budgeting skills to set aside enough money to pay taxes each year to be able to retire. Freelancers will be in for an unpleasant surprise if they forget to save taxes or underestimate the amount of taxes they will be charged at the end of the year.
Health insurance is another issue for freelancers. Many people get their health insurance from their job. It’s easier to get a good policy if you’re part of a large group, and employers tend to cover not just their employees but employees’ spouses and children as well. Freelancers, however, often have to find their own health insurance. Preexisting health conditions may work against someone trying to find health insurance, and spouses and children will cost extra. More than one freelancer has been known to go back to work for someone else in order to have stable health insurance.
Some people also have difficulty motivating themselves without accountability from a manager or other employees. When deciding whether to freelance or not, all these options must be weighed against each other. Whether the advantages or disadvantages of freelancing will be stronger depends on a person’s personality, family situation, skills, field and money management.
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