How to Handle the "Insecurity" of Self-Employment

Advice about How to Handle the "Insecurity" of Self-Employment is more actionable when workload and working hours can be reviewed without treating activity data as a measure of personal worth. the detailed overview for independent work can provide a structured work record for that conversation, and guidance from Mind adds broader wellbeing context. Use the information to adjust scope and capacity, not to reward constant availability or remove necessary breaks.

Every once in a while, I come across someone who says they would like to try freelancing, or become a freelance writer, but “couldn’t give up the security of their job.”

It’s a valid point. As a self-employed writer, I don’t enjoy a regular paycheck, paid days off, company-sponsored benefits, or any of the other traditional signs of success and comfort. My clients can fire me any time, and I won’t get any severance pay. If I’m not writing, I’m not making any money, and there’s never any guarantee that I’ll know where my next bag of groceries is coming from.

And yet, I feel like I have more security than any salaried worker does.

Why? Because as a freelancer, I’m in control of my own life and career. While it’s true that I can’t count on someone to give me a regular paycheck, I also wake up every day knowing that no one is going to march into my office and hand me a pink slip. Individual clients may leave, but I’m always free to find others. I might not know how much money I’ll earn from one month to the next, but there isn’t anyone to stop me from making more money than I do now, either.

In other words, I feel secure because I’m my own boss and I’m good at what I do. I can’t be fired by a middle manager or accountant somewhere, and I dictate the terms of my own business

Now, that’s not the same as saying I have no worries, of course, or that the problems that those would-be freelancers mention aren’t real. Freelancing can be tough on your bank account and cash flow, but I’ve figured out a few ways to beat and eliminate that kind of stress:

First, I always stay busy. That sounds simple enough, but it works. In addition to managing my time well, I do a fair amount of consistent marketing. Those phone calls, email newsletters, and other activities keep a steady stream of new business coming in the door, and ensure that I’m always writing and billing. Individual payments might be slow, but when you’re always busy as a freelancer, the checks keep showing up.

I save and budget religiously. When a payment does arrive in my mailbox, I’ve learned to stop thinking of it as money I can spend. A certain amount has to go to taxes, to savings, back into my business, and so on. That way, I have a cushion I can count on when I need it most. Other than a little bit of talent and some self-motivation, having good money skills can be a freelancer’s most important quality, because it keeps us out of trouble during the inevitable tough times.

I work on passive income projects. Books, Kindle articles, and other products sold over the web (like the ones you see advertised on this site) all contribute to monthly royalties that I can count on to smooth out my cash flow and help me earn a little money even when I’m sick, on vacation, etc. Early in my career, these were small, extra sources of income. Now, they are just as important as my project work for clients.

And finally, I keep written plans for the future. To ensure that I’m meeting my long-term goals — financially and otherwise — I keep lots of written plans and keep track of my progress. That stops me from losing track of where I’m trying to go in my career.

The people who think that self-employment and the freelance lifestyle are fraught with danger and insecurity certainly have a point. In the bigger scheme of things, though, you might be safer controlling your own destiny, and trusting in your own talents, than you’d ever be to trust a single employer to give you one paycheck after another for years on end.