The life of a freelancer is often associated with feast or famine. But this is just another myth that needs busting right here and now so people are not afraid to quit their day jobs only because they fear financial insecurity. Truth is, since I started freelancing, I enjoy better financial security than the one I had as an employee. Let me tell you why.
As a freelancer I am able to diversify my income
And no, I don’t mean investing or currency speculation.
When I was a 9-to-5 employee, my employer could downsize me at any given moment, to delay my monthly payment, to downgrade my salary because of the financial crisis, or something similar.
As a freelancer I have the option to not put all my eggs in one basket. I can have a few active projects at a time and even if one or two are discontinued for some reason, I still have income and time to find new projects to supplement it.
(Now may be a good time to read an old post – what to do if you lose a big client.)
As a freelancer, I can build a network of connections and take on projects from clients all around the world
Financial crisis or not, there always will be businesses flourishing. If a company seizes operations, there are tens others who will need my services and will be able to afford hiring me. As the years go by, I grow my network of connections worldwide. All of my connections are prospects who sooner or later might hire me to help them with their marketing efforts.
Compared to having a single employer, I think it’s needless to say in which case I feel more financially secured.
As a freelancer, I have the time to work on my own projects and develop passive income streams
When I had my regular 9-to-5 job, I hardly ever had the enthusiasm or will power to work on anything else, beside my day job. As a freelancer, I have the freedom to plan my time as I see fit – work and play alike.
To give you a few examples, some of my side projects are working on a couple of start-ups, blogging, writing books, travelling, coaching, and some more. Every hobby has the potential to be monetized and to turn into a nice passive income stream one day.
What better thing than having my name work for me, instead of the need to work for somebody else’s name!
Feast or famine can definitely be included in the list of freelance myths
Being an employee and being a freelancer are two different things. The transition can be hard not only because you’ll probably need some money in the bank to pay the bills while you make a name for yourself as a freelancer.
It’s hard because you need to totally re-write, so to speak, your point of view and how you see the world and yourself in it. The false financial security of the employee is such an example.
Check out an old post I wrote about other freelance myths – financial security is not included in it mainly because when you start as a freelancer, you rarely realize how better secured you are financially than you were at your day job.
Hi Diana
I love your post. Both my husband and I are entrepreneurs plus we have twin toddlers, so financial security is always on our minds. But you are right, we have the luxury to diversify our income options so that if one client doesn’t pay, we can still pay our bills.
Thanks for your positive feedback, Elna – I don’t have children so I have no practical knowledge how they change the equation but I am happy to hear you and your husband (and the toddlers, of course!) do feel financially secured as independents. Enjoy! 😉
I love being a freelancer … because of all you mentioned here. Sometimes I worry … but mostly I have enough work to keep me going and when it is slack, I work on my other income streams. Hopefully I will never be at the mercy of a fickle boss again! Nice post!
Thanks for stopping by, Maryke – worrying is OK. Stressing out is bad for us – and I am so glad I don’t stress out any more… I believe you don’t either 😉 Don’t be hopeful – you have been successfully freelancing your skills for years now. Just keep at it, stay true to yourself, do what you do with passion and no boss can trick you into going back to the cubicle!
Diana, you make some important points here…. the idea that if work is slow someplace, you can find it elsewhere or develop different income streams. AND still have time to develop other projects just for the pure joy of it. All of that speaks to the great opportunities for a freelancer. So many companies are outsourcing these days that I can’t help but believe that freelancing opportunities will continue to grow.
Yes, i second your comment, Jacquie – freelancing is here to stay, no matter how we call it – freelance, outsourcing, consulting, being independent, running your own business, home business, and so on and so forth. I like very much saying that for freelancers everything and anything is possible. Sky really IS the limit. How cool is that?! 😉
Being self employed isn’t for everyone, and you make some very good points. But job security is a thing of the past. At least as a freelancer you can diversify and add more strings to your bow.That in itself makes you more creative. Freelance is def. the way to go , but you do need to be organised about your finances, and have the strength and belief in yourself in a way you don’t as an employee.. Good post:-)
You are right, A.K.Andrew – freelancing isn’t for everyone indeed. There are people who simply have to be in an office at their regular 9-to-5 job to excel, no doubt about that! But I cannot help but wonder – if those people stay at their day jobs because of the financial security an employee has, do they realize how false that feeling of financial security is?
When I read the headline of this post, I thought why is Diana using an oxymoron as her her headline? Because she isn’t. As a freelancer for more than a decade, I agree with your POV – thanks for reminding me why I love freelancing.
hahaha, good one, Alan. To be honest, I was contemplating on the title… But many of my readers are starting freelancers or people who have not yet quite their jobs but want to… So I thought ‘ll catch their eye better by exploiting the common (mis)belief of financial insecurity… Enjoy freelancing! 😀
Simply amazing. I love everything that you have to post. Not only is it inspirational I’m but oh so true. I have tried to talk my self out of freelancing. But honestly, its the only I have found so far that I can’t do. “Talk myself out of it of course” I look forward to future posts. Thanks for all that you do for us
Thanks for your great comment and positive feedback, Josh – it always feels superb to feel appreciated!
And by the way, if you can’t talk yourself out of freelancing, stop trying – apparently, it’s your calling 😉
Did, I am currently reading the $100 startup, not sure if you know the book, but you might qualify for the case studies in the book.
I didn’t know the book, Peichini – just googled it, but we have a long way to go until either of our startups make $50,000, sigh. Thanks for the encouragement though 😉