I celebrated a year as a full-time freelance writer in January, and as I look ahead to the future, I can’t help looking back, especially because I know my journey can help others. Going freelance has gotten hot — Statista notes that by 2027, we’re projected to make up more than half of the U.S. workforce.
You might be considering throwing off the shackles of a W-2 job in hopes of forging your own freelance journey, but it’s not a decision to make lightly. What you’ll gain in flexibility and self-determination, you’ll lose in paid vacation time and subsidized health insurance.
So here’s how I approached becoming a full-time freelancer — and why it’s worth making these moves in particular on your journey.
1. I did it part-time first
Jumping into a new freelance career full-time can be a risk — will you have enough work? Will you be able to support yourself? Thankfully, by the time I even had the idea to quit my W-2 job and become a full-time freelancer, I already had a leg up.
I knew I liked the work (and could drum up enough to do it full-time). And I really loved getting to manage my own tasks and schedule for freelancing. This is because I started freelancing about six months before deciding I wanted to do more of it.
I’d recommend this move to anyone considering going freelance. Yes, you will impose on your already limited free time by taking on a freelance gig alongside your main job. Yes, it will be tiring. But there’s really no other way to assess how you’ll feel about a job if you don’t, you know, do it.
2. I paid off all my debt
I didn’t start out freelancing with the intention of making it my full-time gig. Originally, my mission was to increase my income so I could get out of debt and put money aside to become a homeowner. This worked out extremely well for me, and I managed to become debt-free more than three months earlier than I had originally predicted. With no monthly debt payments, I could breathe a bit easier knowing that if my income took a hit, I would have less to worry about.
Paying off all your debt might be unrealistic for you if you’re hoping to become a freelancer — and if you’ve got low-interest debt like a mortgage, it’s not necessary. But if you’ve got high-interest debt, there is really no scenario in which you shouldn’t try to pay that off. This is especially true before you make a change to your working circumstances. If your freelance work is slow to take off, knowing that you don’t owe creditors will definitely help you sleep better at night.
3. I saved beyond the recommended emergency fund
Before I pulled the trigger on quitting my full-time job, I was able to save enough money to cover nine months’ worth of expenses. I didn’t start saving until after I was out of debt, and ostensibly, this money was sitting in my high-yield savings account and intended to go toward the home purchase I was dreaming of.
However, the cool thing about money is that it’s fungible, and you can use it for anything. When I was leaving my W-2 job, I felt a lot better knowing I had so much put aside, and if freelancing went sideways, I had a safety net. In that situation, buying a house would move to the back burner anyway.
I highly recommend having at least six months’ worth of bills saved in an emergency fund before you cut the strings on W-2 employment. Remember, freelancers don’t get unemployment pay, and your workload may fluctuate, so having cash in reserve can help you get through the loss of a client or a particularly slow month.
4. I consulted with experts
Sometimes, you just need a neutral third party’s opinion — and this is why I love having a financial planner. He’s great at cutting through the noise and “what-ifs” of my own thoughts and pointing me in the right direction. He watched me pay off debt and build up my personal savings, and he was the one who recommended I consider becoming a full-time freelancer.
Similarly, I knew that my tax situation would become more complicated as a freelancer — technically, I’m a small business owner now. So rather than taking my chances on small business tax software (which is great, mind you — but my taxes made me nervous even when they were simple), I hired an accountant. Now I have someone calculating how much I need to pay to the IRS and my state every quarter, as well as filing my annual tax return for me.
You might want to consult with a few experts before you go freelance as well. And if taxes also raise your anxiety levels, I recommend hiring a professional.
As you can see, I did a lot of thinking and a lot of planning before I became a full-time freelancer. It wasn’t a decision I made lightly — and you shouldn’t either. Set yourself up for the best chance of success by making a plan.
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Source: 4 Ways I Got Ready to Become a Full-Time Freelancer
