Disclosure: This post may contain affiliate links, meaning we get a commission if you decide to make a purchase through our links, at no cost to you. Please read our disclosure for more info.
Last Updated on January 20, 2024 by Work In My Pajamas
The freelance life looks glamorous—full of free time, working in your pajamas, and a flexible schedule so you can take that early morning class at the gym, or pick up your kids after school. But is freelancing really as fancy-free as it appears on social media? Below, read three important facts no freelancers like to publicize, and some resources to help you on your way to a freelance lifestyle.
In This Post:
Clients Will Try to Take Advantage of You
When you start freelancing, you have bills to pay in order to stay afloat. You need to make enough money to cover your expenses and also compensate for the number of hours you’ve worked.
But when you discuss pricing with your clients, all they see is the bottom line. Many clients are under the impression they can save money on their marketing or content budget if they hire a freelancer, since they won’t have to pay another employee. This misconception often leads companies to underpay for the quality of work they receive, since freelancers often take low-paying jobs just to have a source of income.
To avoid this situation, carefully calculate how much time and effort each project will require. Sit down with the client and talk about his or her expectations for the project, and what the expected deadlines will be. Then factor in your own time limits and other commitments to settle on a fair price. Tools like Paystub Generator will help you bill clients in a professional way so there is no lingering confusion about how much a client owes you for work.
Freelancers Work More Hours
Anyone who says they want to freelance in order to sleep in and avoid the nine-to-five workplace is kidding themselves. To cover the costs of rent, utilities, training, and the time spent on the job, the majority of freelancers work over forty hours to make ends meet—at least initially.
When you start freelancing, keep in mind you may have to take a part time job or nanny for the neighbors until you gain enough of a client base to support yourself using your freelance skills.
Even Freelancers Have to Pay Taxes
The government requires everyone to pay taxes on annual earnings—even if you don’t have an employer. Self-employment taxes include both Social Security and Medicare, though a portion of your Social Security taxes get deducted if you don’t have a designated employer to pay them for you.
As a general rule, plan on spending about 15% of your income on taxes. Usually, a small portion of that will be deducted and returned to you, but it’s best to set aside a percentage anyways. And take advantage of tax deductions you can write off when you work from home.
Don’t forget about these three seldom-told truths of freelancing. When you go freelance, you open yourself to a world of new possibilities—just remember that you also have to pay the bills.
