When it’s time to take your part-time freelancing and turn it into a full-time career, there are some critical details you have to consider first before taking that step. If you are fully prepared beforehand the transition will be much smoother and less stressful. Bullfrog Insurance has a few things for you to consider:
Long Term Goals
When you’re working for a company, you typically have a relatively clear career path in front of you. You know what you need to do to get the promotions and raises you deem fit.
If you choose to turn your freelancing into a full-time business, you should ask yourself if you want to be a freelancer forever? If yes, shoot for the stars and take the plunge.
If not, determine what your end goal is and how you can reach it. If one of your goals is to give yourself a raise or promotion each year, how do you plan on making that happen?
Consistency is Key
Full-time work typically means having something stable and consistent. Freelancing can be relatively stable if you have reoccurring clients or work each week.
This allows you to plan out your finances and project your overall income for the month. Having consistent work lined up before diving into full-time freelancing makes it a lot less risky. Knowing you have cash coming in on a regular basis will give you peace of mind and create less stress.
Another consideration before taking on full-time freelancing is emergency savings. A good rule of thumb is 3 months pay. Freelancing can be inconsistent at times so having a financial cushion can significantly reduce financial stress.
There will be some months where you’ll make more than enough cash to cover all of your expenses. Having an emergency savings account will help keep you afloat during quieter months.
What About Health Insurance?
One aspect people often forget is that when you work for yourself full-time, you have to pay for your insurance on your own. What you choose to do for health insurance is completely up to you.
Each person is different but it’s something to look into ahead of time. Review all of your options before jumping right into the self-employment lifestyle!
Being a full-time freelancer can lead to a lot of opportunities and a flexible schedule, but like most things it can also have challenges.
Be sure to try and map out a general direction of where you’d like your full-time freelancing career to go. Line up consistent work, save some extra cash and always think about your long-term objectives.
Be sure to visit the Bullfrog Blog often for more tips on productivity, marketing and risk mitigation.