When does a freelancing career take over?
After almost a full year of writing and working 65+ hours/week, I started to think about what it would be like to take on a fulltime freelancing career. So, in typical fashion, I headed to Twitter for some advice:
I immediately got this reply:
His answer really hit home, because truthfully, I have been thinking about becoming a full-time freelancer for the majority of this year.
There are thousands (maybe even millions) of people around the world whose goal is to earn money from blogging and writing on the internet. Or to be a published writer. In fact, I receive a ton of e-mails asking me for freelancing advice. As if I’m even qualified to be giving advice! But, I do feel grateful and a little bit embarrassed/self-conscious that I’m one of the lucky ones who has been able to cultivate a somewhat decent living from blogging – and in such a short amount of time. But do I really want to make blogging my career?
At first, I was surprised that I was even questioning it. Of course I want to make blogging my career! But, wait. Do I really?
I spent a long time thinking about what I want from my life, what I want from my career, and eventually I came to this conclusion: I want the option to choose to become a full-time freelancer in the future, but as of right now, I need to continue with my career in marketing.
Here’s why:
1. The freelance world is competitive
The personal finance blogosphere is an established niche now. We all know who the heavy hitters are, the best columnists, and the speciality sites. In order to be the best, you have to stand out from everyone else. And unfortunately for me, I’m just not that kind of person. I don’t have the personality like Gail Vaz-Oxlade, or the ladies from Smart Cookies. I’m not an amazing writer like Kerry Taylor, and I’ll never be as knowledgeable as Preet Banerjee. I can’t go head-to-head with those kinds of power houses, so where does that leave me?
Sure, there are times where the occasional new blogger/writer quickly rises to fame, but for the rest of us, it might take years to build up a readership base. The competition for internet space is fierce, and in order to have your piece of the pie, you need some serious long-term commitment. Any topic that you can think up, has probably already been written about dozens of times before. So if you’re going to make it as a writer, your article has to be better than all of the others ones that are already out there. Not only that, but you have be able to promote it better and harder than anyone else.
2. I would essentially be taking a 50% pay cut
Right now, I would estimate my gross annual salary to be around $80-90k – approximately half of which now comes from freelance writing and blogging. So if I quit my full-time job, I would be taking a 50% pay cut. Could I make it up by working harder on my writing? Maybe, but probably not.
I have a very good idea of where I stand in the personal finance world. I’m an average writer, who just so happens to make up for it with enthusiasm and hard work. I’m relatable to most people because I’m just a normal person, living a normal life – and that’s where the connection comes from. I don’t think there are a lot of companies out there looking for an unpolished writer like me. So the chances of significantly increasing my freelance income is definitely possible, but isn’t likely. And I’m not willing to gamble like that. Which leads me to my next point…
3. It’s an unstable career choice
If I were to quit my FT job, and then lose one of my big freelancing gigs – Moneyville/Toronto Star or Canadian Living – I’d probably be pretty screwed. And that really scares me. I have a mortgage to pay for, and an RRSP to fund. I’m not a seasoned veteran. I have no background in anything to do with writing or personal finance. There won’t be newspapers and magazines banging at my door, begging me to write for them, and I consider myself to be extremely lucky that two major media outlets in Canada are even letting me put my writing and my name on their websites.
4. I would have to sacrifice my lifestyle
There is no question that I would have to sacrifice my lifestyle as a saver. Could I afford to save as much as I’m saving right now? Obviously the answer is no. So does that mean my #1 personal finance goal of early retirement now gets put on the back burner? Because if that’s the case, is it really worth it? I also wouldn’t get to travel as often as I do.
The whole point of taking on these freelancing gigs to begin with, was to reach my savings goals sooner, and to have the kind of life I want to live – without having to worry or stress out so much about money. The extra income is killer. My budget and my savings accounts have never seen better days. I feel like with such a drastic pay cut and without steady pay, I would be compromising what I really want in life.
5. I would probably work myself to death
I have a sneaking suspicion that if I became a full-time freelancer, I’d work way more than 65 hours/week. In fact, I’m positive that would happen. I would lose all sense of balance in my life, and work would consume me – no matter what kind of schedule I try to implement. I’m not practical in that sense, because I’d be too scared not to hustle my butt off.
At least with working a full-time job, I have set hours. I do my work, and then I leave. Sure, I go home and work on my freelancing, but at least I know I have to go to bed at a somewhat decent hour (almost always before 2am), because I need to get up and go to work again the next day.
It’s weird to say this, but having a full-time career forces me to have some sort of work/life balance. With the free time that I have each week, I spend it doing what I think is the most important – playing field hockey, seeing friends and family, being with my boyfriend, and going traveling. Everything else just gets tossed aside. I don’t recall the last time I watched a TV show. I don’t sleep in. I don’t read books that aren’t related to marketing/personal finance. I don’t go out drinking on the weekends. In fact, when I’m not working on stuff, I’m almost always on the go doing something. And I like it that way. For now, at least.
6. I need the experience
I’ve only been in the work force for 5 years. That’s not a lot of time, and the marketing/graphic design industry in Vancouver is really competitive. If, for some reason, the freelancing career doesn’t work out, I need to have experience under my belt in order to get back into the marketing industry. I have never stayed at a job longer than 2 years, and I think I need to gain long-term experience with one employer in order to keep the door open for a potential step back into marketing down the road (if need be). It’s really the smart thing to do at this point in my (young) career.
Current freelancers, or for those contemplating a freelancing career – at what point do you decide to make that transition?
27 Responses to “When does a freelancing career take over?”
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I think it also depends on necessity. If you got laid off from the day job today, other than look for more work, you would freelance.
I think you would be surprised just how much you could make freelancing. Take a look at Crystal @ Budgeting in the Fun Stuff who quit her job this past summer and is killing it income wise doing internet freelancing (and not just writing!). Her income has doubled.
For us, we have government jobs with benefits and pensions. Our Internet income isn’t nearly enough to consider one of us leaving our well compensated positions.
This next 12 months will be interesting. Mrs. SPF will be on mat leave, i’ll work, and the site will continue to rumble along. When the time comes for Mrs. SPF to return to work we’ll have a decision to make. At that point we’ll assess what kind of online income we could garner vs her (or I!) returning to work.
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Great post – I’ve certainly had similar thoughts myself.
I love the quote by Scott – I just wished the real world was that simple.
I think you do have a lot of writing talent – people really connect to your writing.
Working for yourself has some benefits, but working the day job + freelancing is also a good gig. Stability, lots of money etc.
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@Mike Holman:
I wish life were that simple as well. The comment was made because I was asking the same question Krystal did about 3 years ago.
I feel you can’t reach your full potential and be fully successful in something if you only do it part time. Every entrepreneur faces the same decision as some point. It’s like you’re standing on a cliff with the security of a full time job holding you back. I’ve been there and it was the most difficult decision I’ve had to make after leaving company I’d been with for 10+ years.
At some point if you’re really passionate about something it’s time to take the leap.
Krystal said, Freelance income makes up 50% of her income. I have a feeling she could make up the remaining 50% and more if she was able to work full time at it.
My suggestion to Krystal is to find a good mentor. Their guidance will be invaluable.
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@Scott Dawson:
@Scott – I agree that part time doesn’t cut it. I have so much I want to do with my business and it feels like I’m accomplishing (some of) it at a snail’s pace. It can be frustrating.
You’re right that Krystal can make up the other 50% of income working full time. Piece of cake!
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Ha, well I’m glad you two are both confident that I can make up the extra 50% in income! :P
Totally agree that part-time doesn’t cut it when you want to grow yourself as a brand. It’s incredibly frustrating, but at the same time I’m grateful to have my full-time job as steady income.
Also, I was just thinking about trying to find a mentor. Trouble is, anyone with a name in the personal finance world seems to be in Ontario somewhere!
I’m not a fan of having one mentor. If I were thinking of going full time, I would probably want to talk (by phone) to people who have done it – Mike Piper, Phil Taylor, Matt Jabs would be on my list. I’m sure you know others as well.
There just aren’t enough pf bloggers to be able to find one in your city.
PRos and cons cut both ways — I was freelancing (consulting in IT) for almost 10 years, and the lack of steady income is what finally tipoped me for going for a full-time job. That and my wife saying that she really couln’t put up with the uncertainty every couple months and the fact that we had to eat out tax money a couple times when gigs didn’t perfectly align themselves.
Also, there’s something to be said for health coverage and insurance when you’re married and getting older.
That’s so true. I think freelancing is such an easy option for me right now because I have no real commitments – other than my mortgage. The lack of steady income really scares me, and when I’m older and have a family, health coverage and insurance is going to be important to me. Definitely a lot to think about!
I think point #5 and your 50% paycut are the biggies.
5 years of experience is good, however shoot for 10 years experience. The doors OPEN for you exponentially once you hit the 10 year mark.
A 50% paycut sucks. Instead, shoot for 100% replace of day job and assess whether you still like it.
Good luck!
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Thanks for your thoughts!
Right now, I make the same amount of income from freelancing as I do from my day job. So I could essentially quit my full-time job and be okay. But, I’m used to bringing in double the income, so I don’t think I could handle it.
Honestly, I think it’s just a matter of, when you think you’d prefer your life as a freelancer, and can make it sustainable, then it’s time to take the plunge.
That said, I think among the blogger community the idea of quitting one’s day job to blog full time is kind of held up as the holy grail of success, but it really should only be a goal if you WANT that kind of lifestyle. Personally, I love my job and I don’t really want blogging to become any more of a hobby. If you like your life/blogging system the way it is now, don’t pressure yourself to go all blogging all the time just because you “should” do it.
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I love my freelance work, but I don’t want to make it my full-time career. Later on, after maybe 15+ years in a corporate career, I may look to branch out into my own marketing consulting firm. But ideally, I want to gain the experience at big F500 companies first.
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This is a great blog post – thanks for sharing. The stability factor is a very important one. Much of the decision ultimately comes down to whether or not one wishes to be an employee or run a company. For me, I only earn a few thousand a year in side projects; i.e. side projects count for less than 10% of my income.
I’m curious to know more about Financial Samurai’s comment that 10 years experience makes freelancing much easier. Is that a general observation about most careers or is it specific to a certain field?
I saw your tweet and I was wondering if this would turn into a post. Thanks for sharing your thoughts. You bring up some good points. I have had a similar issue in my own head for a while now.
My school board term ends next year and I’m debating do I want to run for a second term? I love the work, but I could be doing a lot more writing if I wasn’t doing the board work.
I know I was emailing one freelancer about that same topic and she said that she switched to fulltime because “she got tired of saying ‘no’ to new work.” Basically if you can’t grow the side business anymore from the day job, perhaps it is time to save up some cash and take the plunge.
Take care,
Tim
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Hey Krystal,
Really great post. Below are some of my thoughts.
First, if you can work 65+ hours a week for a year straight at a FT job and also freelancing, you could transfer those full 65 hours to a freelance career and do great. The problem a lot of freelancers face is the fact that they’re not ready to work the hours needed to keep their heads above water. The whole “freelance lifestyle” gets into their head and they don’t believe that they need to work hard to get what they want.
I agree with you though, the losing all sense of balance can be hard to grasp. It’s been a couple years since I’ve been trying to find the balance and it’s hard still :)
Personally for me, I just jumped in. No safety net and no savings. When your back is against the wall, you’ll find yourself doing things that you normally didn’t think you could do. So if you’re worried that your budget will be cut in half, trust me that if you cut the FT job out, you’d quickly fill it up with freelance gigs. Maybe paid-per-post blogging for other PF blogs and/or blogs in & around your niche.
Either way, whatever you decide to do, you’ll do great at it! You’ve got your own special lane here at GMBMFB and I know that if you ever jumped into freelancing full time, you’d completely dominate. You’ve got a unique voice and the connection you make with your readers because you’re “just a regular person like them” is your USP. Use it and grow – at whatever rate you want; freelance full time today or in a year, either way I know you’re headed in that direction and you’ll be great at it :)
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Thanks for your comments, Mike! After having worked with you for the past week, I know that you’re a ridiculously hard worker. Major props to you for just diving into it. I totally agree that when you’re faced with a challenge like that – where you only have yourself to rely on – you’d do things you normally might not do. Which I think is where my fear is. Will I be so scared of failing/not making enough income that I will work myself to death?
I’m the type of person who needs stability. I get serious anxiety just thinking about not having a steady flow of income coming in. And I feel like, because of this, I will end up lowering my rates or taking on poor paying jobs, just to ensure that I maintain a level of income. And then by working so hard, I’ll burn out.
So much to think about! Anyway, I’m glad we connected, because I think I can learn a lot from you.
For me, I made the decision to go full-time when:
1) The business’s after-tax profits were at 75% of our expenses, and
2) We had enough cash (outside of retirement savings) such that, if things kept up at that rate, we’d be OK for just over 2 years.
The line of thinking was that I’d try it for one year. If things didn’t pan out, I’d start job searching, and we’d be OK as long as it took less than a year to find a job.
As it happens, the business grew quickly enough that things worked out quite well. To some extent, that was because I was able to put about twice as many hours into it. But there’s no doubt that luck was also a significant factor.
I guess all I’m getting at here is:
1) Rather than looking at how your freelance income compares to your job income, how does it compare to your expenses?
2) How long would your savings last for you to work on growing your business before you’d have to go back and look for a job?
When the answer to that second question doesn’t scare you, I say go for it.
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Good point re: having savings in the bank. I don’t think I’d feel comfortable going completely freelance with at least 12 months of bare bones living expenses in the bank.
I don’t think I would quit my job until my mortgage was paid off, even if I could manage to replace my employment income with freelance income. If you can manage both, why not do it for as long as possible?
I agree with Mike Smith that there is a certain aura around the freelance lifestyle that could make it difficult to maintain the same discipline and structure that a traditional job provides.
Not that I’m suggesting you would have those issues, in fact if there’s anyone who can make it as a full-time freelancer, you’re the first person that comes to mind.
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I can tell you that it’s certainly easy to make some money writing and blogging, but not so much a full time income. But with your more commercial experience, doing both editorial and marketing would certainly help boost that.
That said, now that you have a mortgage, it’s possibly not the best time to take that step yet.
Fulltime freelancing doesn’t personally appeal to me, but who’s to say I won’t change my mind in the future?
Two great blogs I recommend for anyone interested in making a living as a full time independent writer are Dollars and Deadlines, and Make a Living Writing.
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Based on your set of skills and fantastic writing ability, I think you could pull it off by leaving your job and freelance full time. Let’s not kid ourselves, you’re running an excellent blog and in my view, you could make a go at it and do well for yourself.
However, the message I’m getting is that you’re not ready for that just yet and you place importance and comfort in getting that extra income. I agree with Echo in that it might be best to ensure you’re in the clear with respect to your mortgage and perhaps then you’d feel more liberated and at ease of exploring a new path.
Just my thought. Congrats on your continued success and revamping of your website. It’s great!
All the best,
TWC
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[...] Krystal wonders when the time is right to take the leap into self employment. [...]
@Krystal Yee:
Well done matching your day job income! That is a very difficult feet to do for many, including myself. After a couple years, I’m only around 10%, doh.
Perhaps shoot for double your income then? I’d love to be able to accomplish what you’ve done, so I’ll keep trying!
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I think one of the most important things is to take that step when you’re ready. I also think it’s best to quit your day job when you have no debt. It places you in a better position with much lower expenses.