Deciding to take the plunge and become a full-time freelancer is not easy -especially if you are used to the peace of mind that a 9-to-5 job provides. However, being self-employed also has many benefits such as freedom to work any number of hours you want, choose your own schedule, and work from home or virtually anywhere in the world.
That is why many people nowadays have chosen the freelancing path. If you are one of those people transitioning from an office job to freelancing, there are some things you need to consider that you did not have to worry about before.
Getting Your Own Health Insurance
If you have been working as part of a corporation or even in a small business, you probably got your health insurance from your employer. Now that you are becoming a freelancer, you will need to get individual health insurance quotes and shop around to determine which is the best plan for you. If your spouse gets insurance from their employer, then you might be able to get coverage through his or her health plan.
Learning How to File your Taxes as Self-Employed
When you are a freelancer, you must file your taxes as a business owner. This means you can take additional deductions as self-employed, but you will also incur in other tax categories that you wouldn’t have to pay if you were working for a company. The best is to seek the advice of an accountant, at least during the first year of your freelancing career, to make sure you include all the deductions you are entitled to and that you pay all the items that correspond to the self-employed category.
Assess How Your Lifestyle Might Change Once You Leave Your 9-5 Job
Working from home can be a treat, but it can also be challenging. Not only from the financial perspective but it also represents a change in your daily routine and the use of different spaces in your home.
If you don’t set up a routine from the start, you might end up putting more work hours than what you would if you were working as a full-time employee. Additionally, you will have to deal with clients and deadlines all by yourself, which can be stressful for some.
We recommend that you set up a space dedicated exclusively for work, limit your work-hours so that you can properly enjoy your new-found freedom.
Make sure your family is on board with your plan as well. It is a lot easier to change to a freelancing career if you have their support and understanding.
The perks of being your own boss are many, but so are the responsibilities. Before deciding to make such a drastic change, make sure this is the right move for you. These times can be both exciting and terrifying all at once. Do your research and plan the transition in detail, so it is as seamless as possible.