Working as a full-time freelancer is a freeing experience. There’s no one to tell you what to do when to work, or what projects to take. You get the opportunity to set your own rules and chase your passions. Once you get the hang of this lifestyle, it’s a rewarding experience. However, as with anything in life, being a full-time freelancer has its challenges. One of the most significant is finances. 

You may have heard stories about freelancers that were able to supplement their income and lead decent lives. Though it’s a lot easier to be successful these days, the reality is that it doesn’t happen overnight. If you don’t have a financial cushion, things could get pretty stressful. Continue reading to learn more. 

You’ve Got Bills To Pay

Before deciding to quit your job to be a full-time freelancer, consider your finances. You still have to cover the costs of living. Without a stable income to rely on, this could be challenging at times. As you’ll soon find out, freelancers don’t get a regular paycheck. If you can’t cover your bills, your passion ends up becoming a chore as you take on any assignment to stay afloat. 

The Pay Isn’t Consistent

As stated previously, a freelancer doesn’t get regular paychecks. Sure, you can secure clients who pay you weekly or monthly, but it can take months or even years before you generate enough clients to acquire a stable income. Unfortunately, some freelancers run into clients that request work and don’t even pay for it. Since you can’t bank on a paycheck, you need a nest egg to dip into when funds are short. 

There Are Associated Costs

Whether you decide to start a blog or sell beauty products online, there are associated costs with running a business. As the owner, you’re responsible for everything from internet services and website maintenance to marketing and production costs. You’ll also have to cover other expenses like a business, health, and life insurance premium. Until your business is generating enough revenue, you may need to use funds from your nest egg to cover these costs. 

Slow Periods

You’ll soon learn that there are periods when business is booming and times when things are slow. Perhaps you offer seasonal products and services, or something has impacted the economy, causing clients to scale back. Whatever the case is, going weeks or months without income is rough. Having a cushion, however, could help tide you over until things pick back up. 

Things Happen

As much as you try and plan and prepare for unforeseen circumstances, sometimes things just happen. Something could happen with your personal or professional life that requires a large sum of money to resolve at a moment’s notice. You might need a home or car repair. You could face a slow period or have a client that doesn’t pay your fee. If this happens, you need to be able to bounce back quickly. A nest egg could cover these costs and avoid the need to go into debt. 

Peace Of Mind

Being a freelancer comes with a lot of ups and downs. Wouldn’t it be nice to know that when things are rough, you have the means to survive? The best way to do this is to have a nest egg. It gives you peace of mind in the midst of a storm allowing you to get back on your feet without the added stress. 

Working as a freelancer isn’t for everyone. For those who wish to pursue and succeed in this line of work, you must prepare. Though there’s a lot of advice that can make your experience easier, one of the most significant things you can do is create a nest egg before taking a leap of faith. A financial cushion ensures you can handle everything from household bills to unforeseen circumstances while continuing to do what you love.