Why freelancing is the better financial decision
When considering taking the leap into freelancing, often fears of financial instability come to mind. The idea of leaving behind the relative safety of a stable office job, with a steady and predictable paycheck is daunting. This is further exacerbated by the volatile nature of the current job market due to the Coronavirus Pandemic. Despite these concerns, I am here to tell you that freelancing might be the most financially sound decision of your life.
As a salaried worker, realizing your employer charges a client over five times more than what he pays you for work you completed all by yourself is terrible. As a freelancer, however, you become your own boss and remove the middle man from the equation. All the money for any work you do will go directly to you and you alone. In addition to this, freelance work gives you the freedom to take on as many clients as you deem suitable. You are no longer constrained by any restrictions set by your employer. Unlike a salaryman who is limited to the work offered to him by his boss, you can find many more opportunities to maximize your income. This creates a direct correlation between how much effort you put in and how much you earn.
It is not uncommon for employers to take years to see your hardwork and dedication and only then reward you with a bonus or a promotion. In the case of freelancing, a dedicated freelancer who is willing to take on the initiative to develop their own skills and find clients will always earn more than a stagnant freelancer. Even if you might consider yourself someone who does not usually take the first step, you are more likely to do so in the competitive environment of freelancing. Not only will you be motivated to do more because you will see the direct result in your increased earnings, but you will also be motivated to learn new skills to keep up with the market. Having more skills in your tool belt will again lead to higher pay, reinforcing your will to do more and earn more.
Freelance work is also by nature an international industry. By becoming a freelancer, you open up yourself to clients from all over the world. This gives you access to job openings that are based on western standards of pay. Due to the much higher living costs in the west compared to the Philippines, the same income can mean much more purchasing power here. In addition to this, there is a growing demand for filipino freelancers due to their literacy in English. These two factors make it much easier for Filipinos to find high-paying work in this industry.
Finally, freelancers can also save money on various expenses that over time do add up. The cost of daily commutes is no longer an issue as well as food expenses due to eating out. Other seemingly inconsequential expenses such as formal office clothing and maybe hiring a nanny for your children can also be waived. Freelancers also save a lot on tax deductions that come with being self employed. Many expenses such as your internet and cellphone package can be counted as a business expense to be deducted as a result of running your own business. All these factors together make freelancing not only a viable employment option, but one that many individuals prefer over traditional jobs due to all its benefits.