Should You Consider Going Freelance?
Introduction
In the past decade, freelancing has transformed from a niche alternative to conventional employment into a mainstream career option. The pandemic accelerated this shift, with many professionals discovering the appeal of remote work and greater autonomy over their schedules. But beyond the allure of working in pyjamas or setting your own hours, freelancing requires a major shift in mindset, discipline, and financial planning. If you’re contemplating whether to make the leap, this article will walk you through the potential advantages, the realities, and the steps that can help you determine if freelancing is right for you.
The numbers
We probably all know people who’ve gone freelance in recent years, especially during or in the wake of the pandemic. Beyond the anecdotal, the numbers back up the growth in this trend. According to Upwork’s 10th annual study, Freelance Forward: 2023, freelancing hit an all-time high last year [1]. In the US, freelancers make up 38% of the workforce, an increase of 4 million professionals from 2022. While in the UK, the number of people who work for themselves increased by 45% from 2000 to 2017 [2], while from 2019 to 2021, freelancers offering skilled services grew by 8% [3]. By 2028, it’s estimated that the number of US freelancers will reach a whopping 90.1 million. [4]
Paired with a rise in other trends, such as digital nomadding or quiet quitting, it’s evident that the surge in willing freelancers is here to stay. But why has it become such an appealing way of life?
Freedom and flexibility
One of the most widely touted benefits of freelancing is the freedom it offers. When you’re a freelancer, you set your own hours, work from wherever you like, and often have control over which projects you take on. This level of autonomy can be a breath of fresh air, especially if you’re transitioning from a rigid, office-based job. For parents, carers, or anyone with responsibilities outside of work, freelancing can provide an ideal work-life balance, allowing for greater flexibility to manage personal commitments.
Additionally, freelancing often gives you the opportunity to work on projects that align with your interests or strengths. Unlike traditional employment, where tasks are usually assigned with little say from the employee, freelancing enables you to shape your workload to fit your passions and expertise. This control can make the work more enjoyable, and in many cases, it enhances job satisfaction. However, it’s important to remember that this freedom comes with the responsibility of self-management — staying on top of deadlines, scheduling, and maintaining consistent productivity without the structure of an office environment.
Security
It may sound oxymoronic, but increasingly workers are edging towards freelancing because they feel it offers greater security than a more traditional nine to five role. This goes against the general, predominating understanding of freelancing –– that the freedom and flexibility it affords are a trade off against the instability intrinsic to not having a full-time employer. But according to a 2023 survey conducted by MBO Partners, 66% of independent workers said they feel more secure working for themselves [5]. This finding is supported by Slack’s research consortium Future Forum, which found that younger workers have come to view freelancing as more stable than a full-time job due to its potential for diversified clients and income streams. [6]
This points to a sense that it’s not just that ‘freelance life’ as we have traditionally viewed it has become more appealing, but that what we consider freelancing to be has shifted as well.
Earning potential
Another appeal is that freelancing has the potential to yield higher earnings than a salaried position. By setting your own rates and building a roster of clients, you can potentially exceed the income of a traditional job. Indeed says that freelancers in the US tend to earn as much as $87,000 per year, compared to the national average of $64,000 [7]. For freelancers who specialise in niche areas like technology, graphic design, or copywriting, high demand can drive rates even further up, particularly if you develop a reputation for expertise.
However, while higher income potential is appealing, it’s essential to consider the inherent financial uncertainty. Freelancing income can be highly variable — some months may bring in substantial earnings, while others are quieter, especially when starting out. Financial unpredictability means many freelancers need to carefully manage their cash flow and savings to account for slow periods. In the UK and Ireland, where cost of living can be high, a financial buffer is often essential. Many freelancers suggest having enough in savings to cover six months of expenses, especially in the early days.
Hiring
Business leaders naturally have had to react to the growing freelance trend. Oftentimes, though, they are quite accepting of it. Many business leaders are enticed by the idea of an “on-demand workforce”. For example, a recent Harvard Business School study found that three in five leaders said they would increasingly prefer to “rent”, “borrow” or “share” talent with other companies, and that their full-time staff would be smaller as a result [8]. Those surveyed cited better productivity, efficiency, and lower costs as motivations for using freelancers instead of full-time employees. Leaders who embraced a more freelance-heavy business model said they felt they were giving workers the flexibility they wanted.
However, it could be argued that employers are not pro-freelancers because of some benign desire to give freedom to their employees. Rather, they like not having to pay for benefits or sick days. Which brings us onto the down sides of freelancing.
Negatives
Almost 40% of freelancers say they would prefer to have a traditional job [9]. As Sophia Smith writes in the Financial Times, “Many skilled professionals opt for freelance gigs not because they are running toward something — but because they are running away.” [10]
While some may see freelancing as a secure option in an increasingly unstable world, it’s fair to say the prevailing school of thought is still that freelancing offers instability in finances, holidays, sick days and benefits, especially in the US. Across the pond, 84% of US workers cite health insurance as the benefit they care about most, followed closely by sick time off at 83%. [11]
Some freelance advocates say that employers offer scarcely greater support to their employees than freelance life would. For example, Margaret Lilani, Upwork’s vice-president of talent solutions, says that “many Americans lose their health insurance if they leave their full-time job…and that is a much more fragile situation than when a freelancer has the power to choose.” [12] However, for most, this argument is tenuous. If you suddenly fall sick and are unable to work, a full-time employer has obligations to you that freelance contracts simply do not.
Handling finances
Unlike traditional employees who receive a steady paycheck and employer benefits, freelancers are responsible for managing their own finances. This includes paying taxes, setting aside money for National Insurance in the UK or PRSI in Ireland, and covering health-related expenses. Although it may feel daunting at first, plenty of resources exist to help you manage these responsibilities. Many freelancers use accounting software to track income and expenses, and hiring an accountant can be a worthwhile investment to ensure everything is above board, especially come tax season. That said, most people choose not to go into accounting for a reason. If you’re not numbers minded, this can be a heavy downside of going solo.
Health insurance and retirement planning also fall squarely on freelance workers’ shoulders. With employer pension contributions off the table, freelancers in the UK often turn to private pensions, such as a self-invested personal pension (SIPP), to ensure they’re building a retirement fund. Similarly, in Ireland, freelancers frequently open a personal retirement savings account (PRSA). Though it requires a bit more effort, with the right planning and budgeting, freelancers can enjoy the freedom of their careers without sacrificing their financial security, but make sure you’re going into this blurry world of numbers with your eyes wide open.
Self-Discipline
One thing you won’t hear often enough about freelancing is the level of discipline it demands. With no manager checking in and no set office hours, freelancers must be self-starters. Time management becomes crucial — balancing multiple projects, adhering to client deadlines, and carving out time for professional development all require focus. The ability to stay motivated, especially during slow periods, is one of the less glamorous but essential skills freelancers need to develop.
For many freelancers, this also means being comfortable with solitude. Remote freelancing can sometimes feel isolating, and it’s important to maintain a support network or even join a co-working space where possible. A regular connection with other professionals, whether they’re freelancers or in more traditional roles, can prevent burnout and keep you energised.
Networking
While freelancers may have control over their schedules and projects, building and maintaining a client base is key to success. It’s not always easy — freelancers often need to actively seek out new opportunities, especially at the beginning. Networking is vital here, whether through online platforms, local business groups, or industry events. In the digital age, platforms like LinkedIn, Upwork, and industry-specific job boards can be invaluable tools for freelancers to market themselves and find clients.
However, finding clients is only the start. Retaining clients, building relationships, and establishing a good reputation are equally important. Many freelancers rely heavily on repeat business and referrals, which means that delivering high-quality work on time is crucial. Competition can be fierce, especially in popular fields, so it’s essential to stand out through both the quality of your work and the professionalism you bring to client relationships.
Things to consider
If freelancing sounds appealing, there are a few steps that can help make the transition smoother. First, it’s often wise to test the waters by freelancing part-time, if possible, while keeping a steady job. This gradual shift allows you to build up a portfolio, develop client relationships, and gain confidence before committing fully. It also enables you to gauge if freelancing is the right fit for you without the immediate pressure of relying solely on freelance income.
A robust portfolio is your best marketing tool, as potential clients want to see evidence of your work. Try to include a variety of projects that showcase your skills and versatility. In addition, researching standard rates within your industry and location can help you set fair pricing that reflects your experience and expertise while remaining competitive.
It’s also worth considering what skills you might need to develop before going freelance. From communication and negotiation to project management and financial planning, freelancers wear many hats. Taking the time to develop these skills — through courses, workshops, or mentorship — can pay dividends in the long run.
Should you consider going freelance?
Freelancing can be an incredibly rewarding career path, offering flexibility, control, and the chance to work on projects that truly interest you. However, it comes with challenges that can be overwhelming without preparation and planning. For those ready to take on the responsibility of managing their own work, finances, and client relationships, freelancing offers a unique opportunity to shape a career on your own terms.
Whether freelancing becomes a part-time side hustle or a full-time career, the key is to approach it with a clear understanding of both the rewards and the realities. With the right mindset, careful planning, and a proactive approach to building your network and skills, freelancing can provide a fulfilling and flexible path that fits your lifestyle and professional goals.
More on Freelancing
Rethinking How We Work with Libby Sander – Podcast
Juggling a Full-time Job and a Side Hustle
Sources
[2] https://www.ft.com/content/5870bb6a-81ab-11e7-94e2-c5b903247afd
[3] https://www.ft.com/content/7526454a-c2ac-4890-982b-c745cf7cb89e
[5] https://www.mbopartners.com/state-of-independence/
[6] https://www.ft.com/content/7526454a-c2ac-4890-982b-c745cf7cb89e
[7] https://www.forbes.com/sites/shodewan/2024/08/09/3-reasons-why-freelancing-is-right-for-you/
[8] https://www.ft.com/content/7526454a-c2ac-4890-982b-c745cf7cb89e
[9] https://www.ft.com/content/7526454a-c2ac-4890-982b-c745cf7cb89e
[10] https://www.ft.com/content/7526454a-c2ac-4890-982b-c745cf7cb89e
[11] https://www.ft.com/content/7526454a-c2ac-4890-982b-c745cf7cb89e
[12] https://www.ft.com/content/7526454a-c2ac-4890-982b-c745cf7cb89e
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