Freelancing conjures up images of working holidays through Europe and long days at the beach. Whilst this can be very appealing and make you want to quit your job, there are a few questions you should ask yourself (and answer honestly) before taking the plunge into the freelancing world to determine if it’s the right one for you.
ONE: AM I SELF-MOTIVATED?
Are you more of a ‘Procrastinating Polly’ or a ‘Hyper-Focused Harry’? To be a freelancer, you need to be the Harry (or at least be a bit like Harry). When you have work as a freelancer, you need to be able to effectively manage your own time to get the work done. There is no ‘boss’ hammering you to meet a deadline. That’s on you. And if you don’t manage your time effectively and don’t get the work done on time or up to a high quality standard, then your reputation takes a hit and so too could your future earnings.
That’s if you’re lucky enough to have work. Often, you need to go out and find it. It doesn’t always fall in your lap, so being self-motivated is a trait that will help find the work and produce your best work.
TWO: AM I ORGANISED?
When you become a freelancer the regular paychecks stop coming in and you become solely responsible for your incomings and outgoings. Essentially, you start your own business, which means you need to make sure you stay on top of invoicing, getting paid, superannuation, tax… all of it! There are lots of tools out there like MYOB, Xero, or just good accountants that can help, but it’s really up to you to stay on top of it all.
THREE: CAN I SURVIVE WITHOUT WORK FOR A LITTLE WHILE?
If you live paycheck-to-paycheck, then maybe freelancing isn’t for you. You need to be able to weather the bad times that may result in less (or no) income for a period of time. Make sure you have some savings or a safety net of some kind so that if there is a lull between projects, you are able to keep food on the table and a roof over your head.
FOUR: WHAT ARE MY GOALS, AND CAN I ACHIEVE THEM IF I FREELANCE?
There is a huge amount of pride that comes with that but in the eyes of the banks and the tax department, this is something new and unproven. I learnt this the hard way when I became a freelancer and then couldn’t get a bank loan to buy a property because my income was considered ‘unpredictable’. I had to provide 2 years worth of earnings and they took my worst year of the two as a measure to determine my ability to contribute to the loan. Now, this is not financial advise and things may have changed, but it’s worth thinking about what your personal goals are are whether an ‘unpredictable’ income stream will still allow you to achieve them.
FIVE: AM I OKAY WITH BEING ALONE?
Perhaps this is a little dramatic, but it’s worth noting that freelancing can be lonely at times. If all your friends have full-time jobs, you might find yourself with a Tuesday afternoon free but nobody to hang out with. Conversely, when you are working it might just be at your desk in your bedroom or on the kitchen table; away from a dynamic office environment. It’s good to be comfortable being alone, but it’s also important to get outside, get some sun, go for a walk and talk to others.
So ask yourself these questions and if you’re still unsure or want to chat more, feel free to reach out to kate@thisisrocket.com.au.
