4 ways becoming a freelancer improved your finances

I’ve been a full-time freelance writer for several years, and my life is very different from when I had a traditional job. I have greater flexibility in my schedule and workload and can choose projects that interest me. My finances look different now. Here’s how freelancing has helped me financially, and how the effects have spread to other aspects of my life.

1. I’m making more money serving as a W-2 than ever before.

I’ve been working as a W-2 for almost 10 years. In the fall of 2014, after leaving an unsatisfying job, my husband and I moved overseas to teach English in Korea.

We signed a one-year contract and enjoyed the experience so much that we stayed for two years. After returning to the United States, I immediately began working as a full-time freelancer. At that point in my life, I wanted a better work-life balance and valued flexibility.

Before working abroad, I never made more than $30,000 per year, despite my work experience and college degree. I applied for a different role but there were a lot of people with marketing backgrounds competing for the same role. So I struggled to get a decent job that paid well.

The first few years of full-time freelancing were difficult and I didn’t make much money. It takes time to establish yourself and gain good clients, but I am grateful that I was able to persevere through the difficult moments. My current income is more than three times what I make as a W-2 worker. Most importantly, you feel more fulfilled and happier.

2. Money management has become better.

As I became a freelancer, I also had to improve my money management skills. I keep detailed records of my business finances. I know how much I earn and how much I spend on business expenses, so I can make more informed financial decisions. I’ve also become better at prioritizing my savings and investment goals.

One reason is that I don’t work for a company that offers employee benefits, so I’ve had to prioritize these personal finance goals. Another reason is that I have continued to improve my skills based on the knowledge I gained as a financial writer.

3. I can afford to prioritize my interests.

When you don’t make a lot of money, it can be difficult to cover bills and expenses beyond basic necessities. Before I became a freelancer, I spent money on fun shopping trips, but that didn’t happen very often. Most of my money went to necessities.

Now that my business has grown, I can afford to spend some of my income on personal interests like travel. Every two weeks, money is automatically transferred from your checking account to your savings account so you have the money you need when you’re ready to book that trip.

4. I feel more in control of my finances

After years of freelancing, I feel like I have more control over my financial situation. Here is one example: As a freelancer, you can take on more work if you have unexpected bills and need extra income. Although we can’t promise work, we can usually find additional assignments.

In my previous W-2 role, overtime wasn’t possible, so it would have been harder to make extra money if I had a costly bill. I know my situation can change at a moment’s notice, so I’ve been building an emergency fund just in case something happens. I am grateful that my freelancing career has allowed me to prioritize my savings goals.

Freelancing can be a financial win

There is no one-size-fits-all approach to freelancing and it is not right for everyone. However, for many self-employed people, freelancing can help them improve their financial situation and change their lives for the better.

For me, freelancing has generally been a positive experience and has made my life more enjoyable. If you’re considering freelancing, check out our small business resources for additional financial guidance that may help you on your journey.

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