Freelance or Full-Time: Which one is for you?

You're at a crossroads in your career and can't decide whether to pursue freelancing or stick it out at your full-time job. 

The options seem equally viable on the surface. 

Still, if maximizing your earning potential ranks high on your list of priorities, you need to dig deeper into the pros and cons of each path. While freelancing offers flexibility and freedom, full-time positions typically have stability and benefits. 

As an aspiring digital nomad, you crave the location independence contracting could provide but worry that the sporadic income will wreak havoc on your budget. 

Before you tender your resignation or sign another long-term lease, analyze how each career trajectory could impact your bottom line. With some number crunching, you'll uncover which direction leads to the most fiscal freedom.

The Allure of Freelance Life: Freedom, Flexibility, and Fat Paychecks

The freelance life offers an intoxicating level of freedom and flexibility. No more rush hour commutes or clocking in and out - you set your own hours and work from anywhere. And with freelance wages often higher than full-time roles, you can make a fat paycheck to fund your ideal lifestyle.

Freelancing does come with uncertainty, in any case. One month, you're flush with work. The next, you're hustling for gigs. Building a steady client base takes time and elbow grease. Many freelancers spend as much time searching for work as actually doing the work. Still, once you establish yourself, the rewards can be rich.

Some of the highest-paying freelance fields include:

• Software engineering and web development
• Writing and content creation
• Graphic design
• Virtual Assistant
• Financial Consultant 
• Teacher, etc. 

(Source: Invoice2Go)

While full-time employment offers stability and benefits, the freelance path puts you in the driver's seat. You get to choose who you work with and how much you earn. 

For the self-motivated, the freelance life can be gratifying, personally and financially. 

The freedom to work from anywhere could make you live healthily on a beach in Bali. 

What could be better than that?

Salaried Employment Promises Stability, Structure, and Security in a Volatile World

Job security and stability are significant factors when choosing between freelancing or full-time employment. You are guaranteed a steady paycheck and consistent work as a salaried employee. Your job is safe if you meet performance standards and the company remains solvent.

Job security

In today's volatile economy, job security must be considered. As a full-time employee, you can rely on a stable income and benefits like health insurance, paid time off, and retirement plans. 

While freelancing offers flexibility, the job market rises and falls unpredictably. One month, you may have more work than you can handle; the next, you need help finding new clients. 

For risk-averse individuals, the stability of a full-time position is appealing.

Freelancing also needs the structure and routine of a 9-to-5 job. With set work hours or a physical office to report to, motivating yourself and avoiding distraction can be easy. But that’s not the case with Freelancing.

Could you take my case, for instance?

I am a remote-working freelancer. I have had days of extreme productivity and days of extreme laziness.

Two extremes. My work habit is erratic, and it suits me fine. 

But, it may not suit the others.

The isolation of working alone from home is only for some. 

No, I am not here to wax eloquent about a full-time job.

Of course, job security is not guaranteed for either career path. Companies downsize, and freelance markets change. But all else being equal, salaried employment offers more stability and security. Full-time work is the less precarious choice for those who value a steady paycheck and workplace environment. The trade-off is less flexibility and independence. As with any career decision, you must weigh the pros and cons of your priorities and risk tolerance.

Crunching the Monetary factors

As a freelancer, your income potential is uncapped - the more work you do, the more money you can make. 

However, the key words here are "can make". 

The truth is, when you first start out freelancing, you may need help finding consistent work, and your income could be sporadic. It can take time to build up your client base and establish yourself.

It was 2015.

When I started freelancing, I didn’t know where and how to start.

Heck, I didn’t even think whether freelancing would suit me. The idea of working right from home lured me without any bait, and I was so happy to stay at home. I was (and still is 😛) a lazy bum!

I never analysed anything. I never spoke to anyone.

Just head-dived into becoming a writer and made a mark for myself.

But at what cost? 

I lost money, lost some clients, made more mistakes than I could ever think of, and faced harsh criticism. Everyone in my extended family thought I was whiling away my time, pretending to work, calling names at me, making fun of my work style, and whatnot.

In contrast, a full-time position provides a steady paycheck and stable income. While your salary may increase over time, there is generally a cap on how much you can make in a year. Some full-time jobs do provide bonuses and commissions on top of your base pay, but for the most part, your income is fixed.

• Freelance work may pay higher rates, especially for in-demand skills. As a freelancer, you can set your rates and increase them over time as you gain more experience. According to Upwork, experienced freelancers average $28 to $30 an hour, compared to $25 for a traditional full-time employee.

However, there are additional costs to consider as a freelancer:

• You'll need to pay for your benefits like health insurance, retirement plans, and paid time off. 
• You must invest in ongoing education and training to keep your skills current. 
• You'll need to pay income and self-employment taxes, which are higher than employee taxes. You must save 30-40% of your income to pay taxes.

At the end of the day, whether freelancing or full-time work pays, more comes down to your particular situation and needs. Analyse all the numbers, factor in job stability and work-life balance, and choose the option that suits you best financially and professionally. With hard work and perseverance, either career path can lead to prosperity and success.

Beyond the Benjamins: Weighing Work-Life Balance, Benefits, and Job Satisfaction

Factors to consider in a full-time job

Lack of flexibility

Full-time employees are typically required to work set hours and follow a strict schedule. This can be difficult to manage if you have other commitments, such as childcare or other obligations.

Uncertain job security

Full-time employees can be laid off or terminated at any time, regardless of their performance. This can be a significant source of stress and anxiety.

Lack of control over your career

As a full-time employee, you are typically limited to the opportunities available within your company. This can make advancing your career or taking on new challenges difficult.

Lack of work-life balance

Full-time employees often have to work long hours and may be required to work overtime or on weekends. This can make it challenging to maintain a healthy work-life balance.

Risks involved in Freelancing

Unsteady income

Freelance income can be unpredictable and inconsistent. This can make it difficult to budget and plan for the future.

Lack of benefits

Freelance workers are typically responsible for their own health insurance, retirement savings, and other benefits. This can be a significant financial burden.

Isolation

Freelance workers can often feel isolated and alone. They may have different support and camaraderie than full-time employees.

Lack of job security

Freelance workers are not guaranteed work from one day to the next. This can be a stressful and uncertain situation.

How to balance the pros and cons of freelancing and full-time employment

There is no one-size-fits-all answer to this question, as the best way to balance the pros and cons will vary depending on your individual circumstances and preferences. However, here are some things to consider:

• Your financial situation: Full-time employment may be your better option if you need a steady income and benefits. However, freelancing may be better if you are willing to take on more risk in exchange for more flexibility and control.
• Your lifestyle: Freelancing may be a good choice if you value a flexible schedule and the ability to work from anywhere. However, if you prefer the structure and stability of a traditional job, full-time employment may be a better option.
• Your skills and experience: If you have a specialized skill set or experience, you may be able to command higher rates as a freelancer. However, full-time employment may be a better way to gain experience and build your network if you are starting.

The Best of Both Worlds: Exploring Hybrid Models Like Contract and Part-Time Work

After the COVID-19 pandemic that shook our world, we saw a new model of work on the rise: The Hybrid Model of working.

The hybrid model combines freelancing and full-time work, providing the best of both worlds. Rather than choosing one path over the other, explore options like contract work, part-time roles, and job sharing. These alternative arrangements give you flexibility and stability.

Contract Work

Short-term contracts, typically 3-6 months, allow you to gain valuable experience with different companies. Contract roles often pay higher rates since they lack benefits. The brevity of contracts means frequently searching for new gigs, but the diversity of work prevents boredom. Look for contracts in your field to keep skills sharp during employment gaps.

Part-Time Roles

Part-time jobs offer stability of regular work at reduced hours, usually 20-30 hours per week. The schedule may be fixed or flexible. While pay and benefits are often pro-rated, a part-time role provides income and job security. Some companies hire part-time and then convert top performers to full-time. Starting part-time allows you to evaluate the organization and position.

Job Sharing

Two people jointly fill a typically full-time role, splitting hours and responsibilities. Everyone has a defined schedule, such as alternating or split days/weeks. Job sharing provides work-life balance but can be complex to coordinate and may reduce career progression or benefits opportunities. It requires finding a compatible job-share partner with complementary skills.

The hybrid model's variability and unpredictability are only for some. However, for those seeking flexibility, diversity, and stability in their careers, exploring options like contract work, part-time roles, and job sharing may uncover the ideal balance of freedom and security. Combining different arrangements at once or transitioning between them over time provides a customisable career path to suit your needs and priorities at any given moment. The hybrid model gives you the best of both the freelancing and full-time worlds.

Conclusion

At the end of the day, you have to go with what motivates and fulfills you.

A full-time gig provides stability but less flexibility, while freelancing offers more freedom but uncertainty. There's no right or wrong here, just different paths that lead to different outcomes. Whichever direction you take - traditional or entrepreneurial - make sure to do excellent work, build strong relationships, and never stop learning.

Whether you're on someone else's payroll or your own, continuous self-improvement and providing value to others are the keys to prosperity. The truth is that real success comes from within, not from any particular job title or paycheck. So choose what inspires you, and the money will follow. You are the only person who can determine how much ends up in your pocket.