Money | Freelance | Entrepreneurship
Here Are the Hard Things About Freelancing I Experienced
And the tricky things I learned in the past.
Freelance is a work style that often has a positive image, as it allows you to work in a way that suits you, and if things go well, it can lead to higher incomes. While there are many benefits, it is also true that many people have concerns and worries.
This time, I have summarized the tricky things about freelancing I learned in the past. I would be happy if I could help those planning to work as a freelancer, those already working, and those interested in deepening their understanding of freelancing.
1. In the early stages of freelancing, income tends to be low.
Working as a freelancer allows you to control your workload and pace. On the other hand, unlike a company employee who can earn a stable income regardless of the amount of work, freelancers’ income changes depending on the amount of work, making it unstable.
In addition, to ensure results above a certain level, the client is more likely to judge the contractor based on experience and track record.
For this reason, the client chooses someone with a wealth of experience and track record rather than someone who has just started freelancing. As a result, in the early stages of freelancing without experience or track record, it becomes difficult to get work, and your income is unstable and likely to be low.
2. You have to do your own business
If you belong to a company, you are basically in charge of the tasks given to you, so unless you are in a sales position, you do not need to do sales yourself. However, freelancing requires you to obtain work yourself for all jobs, regardless of the job content.
Also, you must highlight your strengths to the client to get a job. Furthermore, you will have to negotiate the work's unit price and delivery date. Therefore, those who lack communication and presentation skills and are not good at sales or negotiation may find this point extremely difficult and painful.
Even if you have the skills, if you can’t sell, you won’t be able to get a job, so it can be said that sales ability is the most essential thing in freelancing.
3. Procedures such as taxes are a hassle.
Unlike working for a company, when working as a freelancer, you need to do tax processing, such as calculating expenses and filing final tax returns, performed by accounting and general affairs within a company.
Calculating expenses and income, managing receipts, and processing taxes require specialized knowledge so it may be difficult for those without experience or knowledge.
You can outsource this to a professional or use tax processing software, which can be costly and time-consuming.
4. No security such as unemployment insurance
Many freelancers work on a contract basis rather than signing an employment contract; in that case, there is no unemployment insurance.
If you have unemployment insurance, even if you lose your job, you can use it to cover your living expenses while you look for a new job.
However, for freelancers who do not have a stable job or income, the lack of unemployment insurance can be challenging, as they may not have the means to survive if they become unemployed.
Also, although freelancers pay the national pension, they do not have a mandatory retirement age, so they do not have a corporate pension or retirement allowance.
Many freelancers are worried about work and retirement, such as “How many years can I continue working?’’ and “Will I be able to save enough money?’’
5. Easy to get lonely
Freelancing allows you to work remotely and complete the work by yourself. As a result, you can work freely and at your own pace, but it can be challenging to build relationships with other people.
Also, even if there is something you don’t understand or want to discuss, it is difficult to ask someone, so you have to solve it on your own.
As a result, it is difficult for them to feel connected to others, both physically and mentally, and they tend to become lonely.
6. Difficult to create a credit card or obtain a loan
Credit card companies and loan companies need to ensure that the money lent is repaid, so before issuing a card or loan, they will examine whether your income is stable and whether you can pay on time.
As mentioned above, it is difficult for freelancers whose income varies depending on their work, making it difficult to pass the screening process and find it difficult to get a credit card or get a loan.
7. Work can suddenly drop to zero.
Full-time employees are not quickly fired; even if fired, they have various guarantees, such as unemployment insurance and retirement benefits.
In the case of freelancing, the client requires the freelancer to perform work above a certain level. If the results of your work do not reach that standard, your contract may be terminated immediately, and your work may suddenly become zero.
As mentioned above, freelancers have no unemployment insurance system, so losing your job is extremely serious. For this reason, many freelancers take on multiple jobs so they don’t suddenly run out of work.
As I explained, working as a freelancer is good, but there are also many complex and challenging things. Many freelancers have overcome difficult experiences and achieved flexible work styles and high incomes.
I hope that this article has been of some help in deepening your understanding of freelancing.
