Summary

The article presents a perspective on why a traditional 8–5 job may be more advantageous than freelancing, considering factors such as benefits, long-term financial security, and risk management.

Abstract

The author of the article reflects on the allure of freelancing, with its promise of freedom and flexibility, but ultimately argues in favor of the stability and security offered by a traditional 8–5 job. The piece highlights the comprehensive benefits package, including health insurance and pension, provided by employers, which may outweigh the higher income potential of freelancing. It also discusses the importance of job stability in the face of economic downturns, the value of a consistent income, and the support systems in place for employees during layoffs. The author emphasizes the psychological comfort of having a stable job and questions the appeal of being one's own boss, considering the stress and responsibility that comes with it. The article encourages readers to critically evaluate their own risk tolerance, long-term financial goals, and the realities of self-employment before making a career transition.

Opinions

The author values the comprehensive benefits, such as health insurance and pension, that come with a traditional job, which may not be readily available or require additional investment when freelancing.
There is a focus on the importance of long-term financial planning and the security provided by a company pension, which can contribute to a more comfortable retirement.
The author points out the potential financial risks of freelancing, particularly during economic downturns, and the resilience provided by a steady paycheck and potential severance packages.
The article suggests that not everyone is suited to the high-risk, high-reward nature of freelancing or entrepreneurship, and that a stable job can offer peace of mind and reduce stress related to financial uncertainty.
The author acknowledges the appeal of being one's own boss but also highlights the comfort in not having to make high-stakes decisions that could significantly impact one's financial situation.
The piece encourages a balanced view of career choices, advocating for readers to consider their personal circumstances and preferences rather than following the trend of freelancing based on others' success stories.

5 Reasons to Consider an 8–5 Over Freelancing as Your Next Career Move

Let me show you the flip side of the coin

The world of freelancing just sounds so sexy.

You get to be your own boss, set your own hours and skip right over the soul-sucking corporate office to the money.

The next time a chap at the tiki bar starts complaining about his boss, you can just nod, smile, and slip away… to the beachside hut you’ve been working out of the past month. There’s nothing like soaking in the rays of sunshine and letting the rejuvenating energy of the ocean soothe your soul.

What a life, eh? So why don’t more people do it? Heck, why don’t I do it?

Why am I still paying the fool working my 8–5 job five days a week, jumping at the beck and call of my company’s needs, wants, and desires?

Well, I have my reasons. Five pretty good reasons, actually, and you might want to give them thought before you decide your next big career move.

Have you looked beyond the salary?

The freelancing world has done a great job overturning the “starving writer” moniker. And as much as I’d like to pat myself on the back for thus far leading a successful career, I’m well aware that there are some freelancer incomes out there rivaling and surpassing mine.

Those success stories make me pause and think, “Huh … and they sure look like they’re enjoying their workday a lot more than me.”

But there’s more than meets the eye when you look at what a large corporate company can offer you. The cost of an employee to a company is 18–40% more than their salary. That “extra cost” above and beyond an employee’s salary covers things like benefits, insurance, taxes, and a pension.

Booooring, right? Well, I wouldn’t be so quick to brush off the value of those side benefits.

Sure, when you’re young and healthy, your medical costs are minimal, and it’s easy to scoff at trading in your freedom for someone to cover your annual dentist visit. But as you get older or when you begin having children, you naturally start becoming more conservative.

That’s also where the value of insurance steps in. There are many forms of insurance — life insurance, long-term disability insurance, critical illness insurance, to name a few. If I get hit by a car tomorrow and can’t work, my company’s insurance will step in to cover my loss of salary.

What’s your long-term vision?

Early retirement sounds pretty good to me, but how many people truly achieve complete financial freedom by their 30s? Spoiler alert: not that many. Instead, 4.9 million Americans over the age of 65 live below the poverty line.

I like to play it safe. I don’t know what my life will be like when I’m 65, but I take comfort in knowing that my company will be providing me with a pension on top of my personal retirement accounts.

When I retire, I want to be truly retired, which means that I need a solid plan for my finances. Money coming in is always a good thing and knowing that I’m building up a pension is like knowing there’s a pot of gold at the end of the (career) rainbow for me.

Unless you’re able to bring in sufficient passive income to offset your retirement expenses, you’ll still have to work. And unfortunately, freelance writing generally isn’t passive. You have to be creating content or delivering for your clients for the money to continue flowing.

Don’t get me wrong — I enjoy writing and all, but I don’t want to be “retired” at the expense of worrying if my writing has received enough reads to be able to make ends meet.

Can you weather an economic downturn?

All the freelancing newsletters I’ve read address the importance of diversified income streams so that you can be resilient, especially in an economic downturn.

Many of these newsletters also throw in a joke or two about the “old-fashioned” plan of getting an education to get a job that will set you on due course for success in life, only to end up laid off or fired.

I work in a turbulent industry, and on average, I’ve gone through a re-org (a euphemism for letting a massive number of people go at the same time) every year or two of my career. That’s a lot. So I might know a thing or two about what it feels like to lack job stability.

But let me bring you in on a little secret.

Even if I’m not successful in the next round of layoffs, I’ll receive continuation pay and a severance package. This amounts to me continuing to receive my current monthly salary for several months after I’m given the ax.

That’s a decent safety net for me to re-group and re-evaluate my life.

What is your risk tolerance?

I can continue my full-time career while pursuing a side hustle in writing. But can you be a full-time freelancer while pursuing a side hustle in a career? Maybe this isn’t fair to say since freelancing can be a successful career choice, but you get my gist.

I don’t feel comfortable without a consistent, stable source of income coming in regularly at set known times. I’m aware that this is a privilege, but it’s also a privilege that I’ve sought after, worked for, and sacrificed to get.

I recognize that my inability to take on this kind of financial risk means I will never find myself the CEO of a start-up unicorn. I don’t have the mental astuteness to make that final leap of 50% perseverance and 50% faith in that final make-or-break moment — like Elon Musk with Space-X’s last successful launch before bankruptcy or Phil Knight’s management of Nike’s (or should I say Blue Ribbon’s) balance sheet.

Maybe you’re not aiming that high, but it’s food for thought.

Do you actually want to be your own boss?

People often laud the benefits of being your own boss, but I don’t really want to be the boss.

It’s stressful knowing that your financial success — whether or not you have enough to put food on the table — depends solely on you. Sure, I’d like to think I’m smart and capable, but how much am I willing to gamble on myself?

I enjoy not having to make difficult decisions that have a lot at stake. Sure, I can weigh the pros and the cons, evaluate the risks and alternatives, and actually make that last decisive move?

No matter how much effort or work I put into it, I could still be making the wrong decision because of luck, circumstances, or some other unknown factor. That’s a responsibility I’m not sure I want to carry solely on my shoulders.

Sure, I could make a pretty major mistake at my day job, but a) I’m not authorized to make any decisions solely that could significantly move the needle, and b) my mistakes can’t make or break my company.

There is a benefit to a corporate company’s deep pockets.

My intention is not to talk anyone out of freelancing or starting your business. Do it, give it your all, and I wish you all the best in your endeavors.

The world would probably be a very boring and uninventive place if it were filled with risk-averse, “play it safe” kind of people like me.

All I’m hoping to do is share the other side of the story. Show you the flip side of the coin before you make your coin toss. Ask yourself the following five questions and answer honestly and earnestly.

Have you looked beyond the salary?
What’s your long-term vision?
Can you weather an economic downturn?
What is your risk tolerance?
Do you actually want to be your own boss?

The world of freelancing comes with many incredible perks that make it an easy sell over a corporate 8–5 job, but there’s more than meets the eye.

Just make sure you’re making the right decision for yourself and not because someone posted an article about how they make $5000 per month from their writing.