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.