As an expatriate, is freelance right for you?
Becoming a freelancer is a rewarding and challenging career path that millions of creators and consultants are choosing each year. There are a number of factors to consider before you start freelancing: if the lifestyle is right for you, what services you’ll offer, and all the details that go into attracting clients and managing your day-to-day operations.
Before you dive into becoming a freelancer, it helps to be strategic about your priorities and goals, and see if they match up with the realities of freelance life.
The first thing that every freelancer should understand is: You are your own boss. That means you have the freedom and flexibility to set your own rates and organize your own schedule. It also means you’re responsible for everything that goes into running a business: from marketing and accounting, to managing your workload and finding your own healthcare.
Here are a few key considerations while assessing if freelancing is the right move for you:
Do you have the ideal freelancer skill sets?
Practical or technical experience: Take stock of how much experience you have in your field, and what your range of expertise looks like.
Emotional intelligence: If you want to become a freelancer, you need to be self-aware about the levels of your own “soft skills,” like being adaptable and communicating clearly.
Are your finances ready to take the leap?
Safety net savings: Unlike having a traditional job where you can rely on a steady salary, becoming a freelancer means more unpredictable payment schedules, especially as you’re first starting out. Common best practice is to save at least six months’ worth of expenses or, if applicable, make a financial game plan with your partner.
Health insurance: If you’re planning to quit your job and freelance full-time, you won’t have built-in health insurance. Make sure you research the health insurance options available to you in your area, or see if you can be covered through a spouse’s plan.
Taxes: Since freelancers are self-employed professionals, taxes won’t be automatically deducted from your paychecks as they would in a traditional job. Depending on where you live, you could be responsible for paying taxes totaling at least 25% of your income each quarter.
Do the benefits outweigh the challenges for you?
Benefits include: flexibility in scheduling and work location, creative variety, and increased earning potential.
Challenges include: Unreliable workflow, inconsistent pay, no built-in health insurance, and more complex income tax management.
Can you make the time commitment?
If you don’t have the means for building a safety net, or you’re on the fence about whether full-time freelance is the right lifestyle for you, it helps to start out part-time. Experiencing the ins and outs of freelancing in a lower-risk way could help you decide whether it’s the right choice for you—and help you start saving for that safety net.
