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Freelance vs Salary: A Comparative Analysis
Ever wondered what it is like working as a freelancer or working a regular 9-5 job? Are you uncertain about which path to take? Worry no more!
We have seen that many are preferring online freelancing jobs to traditional full-time jobs these days, and there are even websites dedicated to freelancers. A gig used to be designated for talented athletes, musicians, or models. Those days are no longer with us. Today's professionals may work as freelancers in a variety of businesses from almost anywhere on the planet, big thanks to the unimaginable miracles of modern technology. Freelancers can use sites like Upmychain, Upwork, and Truelancer to sell their copywriting skills, create websites, and even sell their items on their own time and at their leisure. Upmychain offers a lot of easy-to-use features that enable the seamless process of hiring the best freelancers across the globe.
Freelancing also comes with the excitement of not knowing what's around the corner, but being open to a plethora of other possibilities. When people explore freelancing, one of the first questions they ask is whether they'd make more or less money working on their own than they would in a traditional 9-to-5 full-time job. Working a salaried job or as a freelancer has numerous advantages and downsides. Before selecting which is ideal for you, you must also consider the pros and negatives of both options. Read more about this here.
Let's compare freelance lifestyle with a regular employment.
1. Freelance vs Regular 9-5 Employment
Freelancing is about much more than having flexible hours and being your own boss. Employer-provided benefits, including as health insurance, 401(k) plans, sick days, and paid vacation time, are one of the largest advantages of full-time work (and one of the biggest disadvantages of performing gigs). A full-time work frequently includes these benefits, whereas freelancers must fend for themselves in every way possible. You can forget about paid vacations (unless you can work on a laptop under a palm tree) and sick days, because no employer or tech platform will compensate you for doing nothing. Find out more about the harsh realities of freelancing here.
2. Steady Paycheck vs Pay per Gig
One of the most significant benefits of full-time job is knowing that you will receive a consistent paycheck and salary security every pay cycle – aka financial security, which is important for budgeting and saving. In the realm of freelancing, this is just not the case. As a freelancer, you bill when you earn – or get paid as tasks or products get finished or sold – however often (or infrequently) that may be. So perhaps the most difficult problem for freelancers is ensuring that there are enough jobs/gigs set up to produce the cash flow they require to stay afloat.
For example, if you're new out of college, you probably don't have the financial security net to rely on gigs, nor do you have enough "on-the-job" experience to start a freelancing career. And if that's the case, you might be better off looking for side gigs and freelance opportunities besides your regular employment. Because becoming a freelancer is like starting a business, you must be prepared to take on the responsibilities that come with it.
3. Financial Security vs Financial Flexibility
Working at the same desk day in and day out may sound like torment on earth to some. Others consider full-time job to be a necessity for financial security. The freelance lifestyle provides freedom and independence, and as your own employer, you don't have to answer to anyone but yourself - except, of course, your clients. This raises the issue of finding a job or gig. You must hustle to get gigs on your own because no one will assign it to you. And, with digital platforms, many only pay pennies on the dollar. They're also not something you can count on for consistent earnings. Freelance gigs can be dangerous business since if you sell nothing, you earn nothing. The more skills and services you sell, however, the more money you make. You can read more about freelancing as an effort-based economy here.
4. Isolation Factor vs Office Environment
Working as a freelancer can be isolating. It lacks the social engagement and hustle of an office job, and you don't have any coworkers. This comes with a lot of stress and burnout. You can learn how to deal with burnout as a freelancer here. In reality, a freelancer's best companion is typically a laptop or smartphone - basically, any device with access to Internet. You could share an office with someone else or rent a space in a co-working facility, but both options are expensive. Also, there's the matter of missing out on events like holidays and company parties. You can forget about those until you throw your own because your clients are unlikely to ask you to theirs. Another option is to join professional organizations where you can network with other consultants and full-time employees in your industry.
What's the catch?
The biggest triumph of beginning your own freelance business is the joy of fulfilment that you receive realizing that you accomplished everything yourself. Have you gotten a new client? You were the one who did it single-handedly. Did you increase your revenue by a factor of two or three? You were the one who did it. Have you figured out a solution to reduce business costs? You did it all by yourself.
With a lot of devotion and the correct mindset, it is possible to achieve a wonderful work-life balance and even create a prosperous freelance career if the entrepreneurial call is too loud for you to ignore. However, unless you're well-established (or have a large enough safety net), it might be better to stick to a day job and try a few side gigs. If they work out, that's fantastic! Even if they don't, it is still okay, because you'll also be able to settle your bills.
When you work as a freelancer, however, you can take greater pride in your work and take responsibility for your accomplishments. You'll also gain a better understanding of how businesses are being run, and who knows, maybe you'll be the one to start one yourself!
Read also:
• Reasons Why Freelancing is a Great Way to Earn Online