We had a long year and many were happy to celebrate its end. We reconnected with friends and family, cheered to being alive and wished each other the best for the new year. Unfortunately, fun times last the least and once again we are back to our busy schedules. 9-5 jobs, kids to pick up from school, businesses to run, etc etc. Many among us are already craving some free time and asking themselves what it is to do to achieve the perfect work-life balance. Well, there are many ways, one being Freelancing. But is it still a good choice in 2022?
When it comes to work-life balance, freelancing can be one of the best career choice to go for because of the flexibility it allows. When working as a freelancer, one has the options of:
- Choosing which clients to work with (or not)
- Prioritizing projects by skills and likability
- Setting up special rates
- Working from anywhere at anytime
And that is just to name a few. Yet, there are also cons to working as a freelancer, the main one being the instability of earnings.
Since the COVID-19 outbreak many companies have closed their doors to the public. Some even transitioned to the work-from-home system indefinitely. With this, freelancers have lost some of the advantages they had against regular businesses; like being able to offer low-rates based on the lease-free business type. This situation caused a more competitive market and, unless you are a very established and known freelancer with recommendations and recurring contracts from big or well-know clients, the work and money you get are mostly ad-hoc. You can imagine how that would affect a work-at-home startup or small business for example.
Other cons of working freelance would be the expenses you are subject to such as Accounting, Business and Health insurance. Basically, all the business expenses plus anything that comes with self-employment, if you are not working for an agency. That is why many freelancing businesses do not reach the 2 years mark. But does this mean there is nothing to look forward to as a freelancer in 2022? Luckily, no. You just want to consider all of the above and ask yourself the right questions.
- How sensitive are you to risk and volatility?
- Self-employed or in-agency freelancer?
- Which industry to work in?
Because of the rising competition in the market, one really wants to think about how sensitive they are to earnings.
That is why it is important to be passionate and love what you are freelancing in. Passion will contribute to your self-discipline, which helps you stay committed to the task, no matter where you or the client are. Love will make you stick to it at times when everything, like the lack of earnings, pulls you away. But if you feel this is way too much uncertainty and risk, then you will be better-off working as an in-agency freelancer rather than Self-Employed. Or just get yourself a second job to offer you the stability this one can’t provide.
Last but not least, you want to do your homework on the different industries. Yes you can freelance, but not solely based on your finance needs and passion. Remember, some industries are “better” than others in certain areas, so choosing well might increase your chances of getting where you want to be, businesswise. There are chances you will not see the rewards of your work before a very long time, or you can be lucky and it will all fall in place much quicker. In any case, never lose sight of what truly matters: love, happiness and self-fulfillment. The rest is simply cherry on the cake.