Are Freelance Jobs Safe?
The risks and the solutions
An unnerving thought is that problems can happen to anyone at any time. People can be made redundant or loose financial stability for many reasons, which causes many to wonder – are freelance jobs safe?
For freelancers, redundancy is unlikely as the nature of the job is that you often move from position to position, or work on multiple projects at once. As such, freelancers are often more prepared for setbacks, but every job comes with its risks. That’s why we’ve evaluated any potential risks that may come from freelancing along with some advice on how to make your experience stress-free.
Now, many of the benefits of freelancing also have their risks. When you freelance, you become a sole trader and this comes with the benefit of being your own boss. For some people, this is quite daunting as you have to set your own rates and negotiate with clients regarding your pay and salary, and this is understandably intimidating in the earlier days before you have a lot of references and experience.
Freelancers sometimes find further financial worries by having to plan their own holidays and days off. As a freelancer, you get paid for the work you do, and if you have a day off, or even a sick day, it’s unlikely you will get paid. Therefore, a freelancer requires a level of financial deftness, planning and organisation. While there are some born with these skills, don’t worry if you haven’t been, as this is something that comes with time and experience and will get easier the longer you work and the more successful you become.
On the topic of money, freelancers must also be in charge of their own taxes. So if you earn above £1000 a year freelancing, you must fill out a self-employment form with HMRC. As taxes will only be completed once at the end of the tax year, rather than taken out of a monthly wage. It’s important that freelancers save enough money to pay this tax rather than finding themselves with an unprecedented bill.
When you don’t earn for each day off you have, many freelancers can feel deterred from taking well-deserved breaks. As such, there is a real risk for freelancers to work without holiday and therefore risk suffering burnout. The best way to overcome this is to ensure that you factor holidays into your year, and ensure clients are informed ahead of time that you have some time off booked on certain days, or that you try to take some time to yourself between clients without jumping straight into new and busy projects constantly. When you look after yourself, your finances will also follow suit, however, if you’re tired and losing your passion, this will reflect in your work, your reputation, and as such your paycheque. Ensuring you are well-rested and happy will alleviate these risks.
If you prepare ahead for these concerns, they become less ‘risks’ and more part and parcel of the job!
Now, for those in other types of employment, if they make a mistake at work (depending on the mistake) they are usually covered by company insurance. Say there is a GDPR breach, the company would be at fault and liable for any damages, however, as a freelancer, the sole responsibility falls to you. Therefore, ensuring that you work to a high standard and that you store information safely and carefully is essential. It may also be worth looking into insurance for any technologies and processes you use. Another idea is ensuring that transactions happen over freelancer sites such as Revolancer to ensure that transactions are protected and secure.
Not only will Revolancer be a great way to contact and store client’s details, but however payments are also handled through the website, which can definitely alleviate some of your concerns.
Next up is another pro-turned-con of freelancing. Every freelancer cites the flexible nature of the job as a massive bonus. You can work from home, in fact, you can work from anywhere in the world. This cuts out the commute, alongside the costs and inconveniences related to commuting. However, working remotely, and working with multiple different workplaces means you have no fixed colleagues and peer support. For new freelancers especially, this can be quite difficult and often off putting, but the more places you work, the more your network grows, and the more peer support you can get externally from your workplace. It’s all about perspective and playing the long game.
Further benefits to the flexible nature of freelancing are that it makes the job so much more accessible. It can allow working parents to continue bringing in a full-time income without compromising on salary or hours. It can also allow freelancers who struggle to travel or commute for any reason, to work comfortably. It’s possible that if you’re freelancing for a larger company you could request to use the office, which would definitely alleviate potential concerns.
Before you go
Now that you know that freelance jobs are safe, find out what freelancer you are from the 5 Freelancing Personality Types. Wondering what freelancing skills are in demand? Here are the 6 Top Freelancing Skills You Should Have in 2022.
Freelance marketplace: Revolancer