As a freelancer, I don’t get any vacation time. Let’s see how I’m coping in 2024

As of last month, I had officially been a full-time freelancer for a year. I started freelancing alongside a more traditional W-2 job that offered the kinds of benefits we all expect from a full-time white-collar job.

For example, I had employer-sponsored health insurance, and when I quit that job and went to HealthCare.gov to see how much a self-funded Marketplace plan would cost, I got sticker shock. The same goes for how complicated my tax situation has become. If you choose to hire a tax professional instead of filing your return directly through tax software, you’ll still incur new, additional costs.

But perhaps the biggest obstacle for me as a freelancer (and indeed a small business owner) has been accepting the fact that I sometimes have to take time off. And you will no longer have employer-provided paid vacation time. Fortunately, I found a solution.

save money here and there

I am writing this after returning home from a much-needed vacation. (And I was also recovering from surgery early in my journey.) I can no longer pretend to be some kind of superwoman who doesn’t need to unplug from work and recharge every once in a while. The proof was in the pudding (I slept better than I ever did on vacation). age).

I admit that the prospect of receiving a few smaller paychecks as a result of working fewer hours makes me anxious. But (and this isn’t all that surprising, considering how long I’ve spent working a low-paying job and living paycheck to paycheck). So I made a plan for around the end of 2023.

I did some math and arrived at an amount that would cover a few days’ work at my usual hourly rate, and put that amount into a savings account for the last two months of 2023. I knew this was just a starting point, and since I hit my initial savings goal before 2024 officially starts, I’ve been able to put a few hundred more dollars into my “PTO fund.” I’d like to add another $50 here and $100 there until the fund covers at least a week’s worth of wages. And best of all, since you’re already saving after-tax money, you’ll be able to pay off your vacation without having to worry about going into debt to Uncle Sam.

It’s easier with my high-yield savings account

My vacation fund is an example of how relying on the right bank account can make your life easier. I opened a high-yield savings account at an online-only bank almost two years ago, and I’ve fallen in love with it. You can create up to 30 sub-accounts within your main account, allowing you to save for quarterly tax payments (freelance life!), buying a home in 2024, or a vacation like the one you just got back from.

I decided to save this money, so I created a new sub-account, set an initial goal, and got to saving. My bank sends me emails updating me on my progress, and I even get a “congratulatory” email when I reach my savings goal. This is all very encouraging, and if you’re struggling to save money, this extra motivation might help. Plus, my bank has a great mobile app so I can check my PTO funds anytime, anywhere.

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All things considered, I love being a freelancer. I create my own schedule, choose my own work, and relying on this work style has led me to financial success like I’ve never experienced before. The lack of paid vacation is definitely a disadvantage, but I am very proud of being able to do this on my own. If you have a similar employment situation, I encourage you to make it a priority. Your future self will thank you too.

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