Freelancing Isn't Going Away Anytime Soon, So We Better Figure Out How To Make It Work

For the last decade, we’ve been told that freelancing is the future of work. The problem with this is that companies don’t want to pay for benefits or overhead, so they give their employees the ol’ heave-ho and hire an army of contractors.

And it turns out that freelancers are having a hard time paying taxes and/or saving any money at all. Basically, this system isn’t working out too well for most people who are doing the work. Here’s how to make sure you’re making ends meet:

This is How Pro Freelancers Work! – YouTube

Takeaways
1. Freelancing is a thriving career option with a promising future.
2. Embrace freelancing as a long-term career path, not just a temporary hustle.
3. Understand how freelancing has evolved in the last decade and adapt accordingly.
4. Learn the essentials of freelancing and how to get started with confidence.
5. The freelance economy is reshaping industries, presenting new opportunities for success.

Table of Contents

Have All Your Invoices, Including Expenses, In One Place

To be the most successful freelancer you can be, you need to have invoices and expenses in a single place. It’s also essential that they’re organized so that when it comes time to pay them, you know where everything is.

If your business is still young or if this sounds like too much work, use something like QuickBooks Self-Employed (it’s free) or FreshBooks Pro (it has a paid version). Both apps allow you to store all of your invoices beautifully, as well as keep track of your expenses.

The point here is not just having access to these documents when necessary; it’s keeping track of how much money you’re making and spending throughout the year so that come tax season there are no surprises!

Freelancing is not just a temporary gig; it’s a long-term career path that offers immense opportunities. Embrace the freelance lifestyle and understand why it’s more than just a hustle. Read our article on Freelancing Is a Career, Not a Hustle, and Here’s Why to discover the true potential of freelancing.

Save Up For Taxes

The best way to save for taxes is to accrue an amount equal to the taxes you expect to owe at the end of each year. This will ensure that you don’t get caught with a big bill at tax time, and it will also allow you to take advantage of any tax breaks that are available throughout the year.

The amount varies by person and situation, but here’s a rough breakdown:

Single filers should pay attention to their income bracket; $0-$9k earns 10%, $9k-$36k earns 15%, and so on. If your salary falls somewhere in between brackets, use our handy calculator for exact amounts (or consult a qualified professional).

Married people who file jointly should pay attention to both their earnings as well as their spouse’s (if applicable) because both spouses’ incomes are considered when calculating taxes owed.

For example: if one person makes $25K annually while another makes $50K annually, they’ll pay 20% on combined earnings over $37K (i.e., 25K + 50K).

The same goes for divorced couples who still share assets they can still be considered married when it comes time for filing taxes!

Keep A Tidy Workspace

It’s not exactly a secret that an unorganized or cluttered workspace can hamper productivity. But what about when you work from home? When your office is also your living room, and sometimes even your kitchen?

Don’t worry it’s never too late to get in the habit of keeping your surroundings tidy. Here are some tips for keeping it clean:

Create a designated workspace (or multiple ones) where you leave only the things you need to work on or something specific at that moment. This could mean putting away anything else before leaving for lunch or taking breaks so that when you come back, everything’s ready to go again.

Use space shields like Post-It notes to remind yourself of any items that need to be returned to their proper place later and don’t forget them!

The freelance landscape has evolved significantly in the last decade. To stay ahead in this dynamic market, it’s crucial to understand how freelancing has changed. Dive into our insights on How Freelancing Has Changed in the Past 10 Years to adapt and thrive in this evolving world.

Know Your Worth. Do Your Research

The first thing to do is find out what other freelancers are charging. Look at their websites and social media accounts, or ask them directly. If they’re not too busy, they might share some information with you but be careful not to come across as pushy or opportunistic.

Then, figure out what your work is worth by comparing the two sets of data: how much others charge for similar work, and how much you can expect to make doing similar gigs.

For example: if your friend who does graphic design for small businesses tells you she makes an average of $25 per hour on projects that take three hours each.

And there’s no way in hell she works three hours on every project she takes on then that means her regular hourly rate is about $75 per hour ($25 x 3).

This gives her an idea of how much money she could make from a 20-page brochure or website homepage design project; then she can decide whether it’s worth taking on such a project based on those numbers alone (as well as her experience working with this particular client).

You’ll Need Health Insurance. Make Sure You Have It

If you’re going to be a freelancer, you will need health insurance. This is not a luxury or something that can be skipped if your budget is tight. Health insurance is expensive but it’s also necessary and it’s not going away anytime soon.

If you’re in good health and have no preexisting conditions, consider getting a high-deductible health plan (HDHP).

HDHPs are cheaper than traditional plans because they require the policyholder to pay more out of pocket before their benefits kick in with some plans costing as little as $1 per month for coverage up to $3,500 per year.

However, there are still expenses that could land you with hefty bills: doctor visits, surgeries, and prescriptions all cost money no matter what kind of plan you have.

If those costs get too high for your bank account and budget then maybe explore other options like short-term medical insurance or an Obamacare marketplace plan instead of an HDHP (which won’t cover any pre-existing conditions).

Create A Professional Website. You Can Use Squarespace Or WordPress

Great! Now that you’ve got a name and an idea, it’s time to create your professional website.

You have lots of options: from hiring a web designer to do it for you (we’ll talk about that in the next section), to doing it yourself, to using a website builder like Squarespace or WordPress.com (which will host your site for free).

Or finally, using free tools such as those offered by Google Sites or Weebly. The latter option might be appealing if you want something simple while still having access to features like email addresses and calendars so that people can contact you directly through your site.

Whatever option works best for you, make sure your website is professional-looking and easy to navigate so clients feel confident enough to do business with you!

New to freelancing and wondering how to start? Learn the essentials of freelancing and what you need to get started. Check out our comprehensive guide on How Freelancing Actually Works: What You Need to Get Started to kickstart your freelance journey with confidence.

Make Sure Your Linkedin Profile Is Up To Date (If You Use Linkedin)

Your profile is your first impression, so make sure it’s professional and up-to-date. If you don’t have a professional photo, get one taken.

Make sure your headline is tailored to the job description and that your summary is concise yet thorough you want to make it easy for hiring managers to see why you’re a good fit for their company.

Your portfolio should be full of samples of your best work (and show off some of the tools you used).

Finally, add any relevant skills or experience from previous jobs as well as anything else that will help sell yourself as an individual who can do this job better than anyone else on the planet.

Get The Proper Equipment For Your Work. Invest In The Best Computer And Software You Can Afford (Or Rent It).

If you’re going to be a freelancer, you need some equipment. You’ll need a good computer and software; you’ll also need a good desk, chair, and office space. These things are all vital to the success of your business.

Also important: internet access, printers (and scanners), fax machines. Any equipment that will allow you to work efficiently from home is going to be worth its weight in gold when it comes time for tax season!

Know When To Say No To Paid Opportunities So They Don’t Get In The Way Of Unpaid/Unloved Ones

The only way to succeed at freelancing is by being realistic about your limitations. If you don’t know how much work you can handle, ask someone who has worked with you before.

Don’t accept a job without knowing everything there is to know about it not just the rate, but also the time commitment and what will be expected of you in terms of other deliverables (e.g., contracts).

The more thorough the questions, the better prepared both parties will be for what’s ahead.

Set Contracts And Boundaries

You can also set boundaries with others. You might be tempted to take on any freelance project that comes your way, but that’s not always the best course of action.

Are you overloaded with work? Do you have other commitments coming up? If so, it might be time to say no and stick to your priorities.

You should also consider what kind of relationship you want to build with clients or employers and this is true even if they aren’t paying you money.

A client who treats freelancers like disposable resources is one worth avoiding; if a potential client seems too aggressive in their approach or doesn’t respect your time and expertise.

Then it’s probably better for everyone involved if they find someone else who can suit their needs instead of wasting both parties’ time by going forward with an unproductive collaboration.

The rise of freelancing has transformed the way we work, breaking traditional boundaries. Discover how freelancing is shaping the modern workforce in our thought-provoking article on How Freelancing Is Changing the Way We Work. Embrace the change and embrace the future of work.

Address Payment Issues Immediately

If you’re not getting paid, address it immediately. If you don’t, and then the client disappears with no explanation, you risk never getting paid for your work. If this happens to you, I recommend finding a way to get paid.

This might mean talking to friends who know people in the industry and asking them if they can make some calls on your behalf, or maybe there’s someone else who has had success working with this client before who might be able to lend their assistance, or perhaps there’s another option that would work better for your situation?

Whatever path you choose (and I realize that freelancing doesn’t always allow for options), be sure not to give up until the problem has been solved

Learn To Say No

This is one of the most important skills for freelancers to develop, but it’s also one that’s often difficult for people who have been used to saying yes their whole lives.

We’re trained to be accommodating and agreeable, so it can seem like a huge change or even a risk when we start turning down work from clients.

But if you don’t learn how to politely decline projects that aren’t right for you (or at least give yourself some wiggle room in terms of deadlines), then it’s going to be hard for you as an individual and as a freelancer and ultimately harder on your client too!

It doesn’t mean that every single project has to be something you’re excited about; sometimes they just need doing, especially if they pay well enough that they’ll help support other things in your life like paying rent or buying groceries, or saving up for travel expenses.

But if it feels like something isn’t right in your gut? Trust those instincts!

Since starting my career as a freelance writer and editor four years ago now, I’ve learned so much about myself through trial-and-error: what kinds of work energize me; where I want my career trajectory headed;

Maybe even why certain relationships didn’t work out along the way (I’m looking at YOU, ex). The process hasn’t always been easy but nor should any time spent learning about ourselves ever be easy!

Be Well Organized

As a freelancer, you have a lot on your plate. You need to keep track of all the jobs you take and the results of those projects. You also need to keep in contact with your clients and make sure they’re happy with their end product.

Being organized is one of the most important skills for success as a freelancer because it allows you to find things quickly when you need them.

This comes in handy when clients ask questions or request changes on the fly being able to respond quickly will keep both parties happy!

The freelance economy is a force to be reckoned with, bringing significant changes to the employment landscape. Discover why the freelance economy is destined to reshape industries and opportunities in our enlightening article on The Freelance Economy Is Gonna Change Everything. Get ready to be a part of this transformative journey.

Know Your Limit

The first step to making freelancing work is knowing your limits. You need to know what you can and can’t do, how much you can take on, and what it’s worth to you.

Let’s start with knowing how much time you have available per month. Take into consideration any other obligations or projects that may be going on at the same time (your work schedule might be full).

Next, try to determine how much money per hour/project/month makes sense for your business model, based on what kind of clients you’re targeting and whether they’re paying hourly or by project/monthly retainer fee (or both).

For example: If I’m doing a lot of one-off projects that don’t require a lot of overhead (i.e., meetings), then I might charge more than if I was working with someone who wants me around all day long every week for several months at a time (more meetings!).

Save For Emergencies

One way to protect yourself from the ups and downs of freelancing is by saving for emergencies, retirement, taxes, and unexpected expenses. You’ll need these funds even if you work full-time in an office job.

To save for emergencies, create a savings account that’s separate from your business account. This will help keep your finances separate from your business finances and make it easier to access money when you need it most.

Consider keeping at least three months’ worth of living expenses in this emergency fund at all times so that if something goes wrong with one of your contracts or invoices come in slowly (or not at all).

There’s still enough money coming in to cover basic costs like rent and food until new payments arrive or the situation resolves itself somehow.

Retirement accounts are another key component of financial independence as they allow you more freedom with how you spend down those savings over time instead of being forced into a rigid retirement date due to company policy.

Even though many companies offer 401(k) plans now (and some even match employee contributions),

Saving up enough money isn’t always easy especially when there are other priorities like education loans or paying off credit card debt first before contributing anything extra towards retirement planning goals.”

Conclusion

There’s nothing to fear when it comes down to being your boss. Sure, it takes a lot of work and time, but there’s so much potential in this path that you might as well take advantage of what’s available.

Go out into the world with confidence knowing that you have all the skills necessary for success!

FAQs

How do I find freelance clients effectively?

Effective client acquisition involves showcasing your skills through a well-crafted portfolio, networking on freelance platforms, and leveraging social media to reach potential clients.

How can I set competitive freelance rates?

Research industry standards, consider your skills and experience, and factor in overhead costs to determine competitive freelance rates that align with your value.

What are the key challenges faced by freelancers?

Freelancers often deal with irregular income, self-discipline, client communication, and work-life balance. Developing strategies to address these challenges is essential for success.

How can I manage my time efficiently as a freelancer?

Time management is crucial for freelancers. Utilize tools like time-tracking apps, create a schedule, set clear priorities, and avoid multitasking to improve productivity.

What legal and financial considerations do freelancers need to address?

Freelancers should consider setting up a business entity, managing taxes, invoicing clients, and securing contracts to ensure legal and financial protection for their work.

Costantine Edward

Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.

Freelancing Isn’t Going Away Anytime Soon, So We Better Figure Out How To Make It Work