Back in February, I shared the news of my unexpected side hustle, which has been a five-figure opportunity for me and Ian to make a little cash while working in something completely different from our day jobs. This is my first foray into freelancing. Thankfully, Ian has lived that freelancer life (albeit only briefly), so figuring out the tax situation has been less of a headache.
Freelancing is harder than a day job
Unpopular opinion, perhaps? From the outside looking in, a freelancer’s life seems enviable. I was very naive about this. It’s not Instagramable moments in a cafe staring out a window. Clients don’t love everything you do (I was aware of this, but again, a little naive). Free time doesn’t appear.
I could quit my day job to get that picturesque lifestyle. Sure, I’d only have to work 10 hours a week. However, I’d have no insurance. My hourly rate is high, but working so few hours, I’d essentially be making a minimum wage salary. With my cost of living, my savings would disappear quickly.
So, I keep the day job. I put in extra hours in the evenings for this side gig. The work is rewarding, so I’m happy to do it. But at times it can be quite draining.
If you’re looking for a side hustle, think twice before becoming a freelancer
My goal, which I’m sure is the case for many of you, is to find something that’s scalable. A blog can be scalable, but that takes hard work and I haven’t had much success there. (But if you’d like to support, feel free to check out and click through to Amazon via some of my gift guides.) Based on my brief experience thus far, freelancing is not scalable. What you get out of it is more or less equal to the time that you put in. For me and Ian, this has meant a lot of late nights for us and less time goofing off around each other.
We enjoy working together, but the stress of additional deadlines is hard for the both of us.
If we do well, we could potentially get a 2-year contract renewal. I can’t retire off of those earnings, but it will give me a little more financial flexibility. I’d like to use that flexibility to explore options that have more longevity.
The freelancing lifestyle makes sense for a lot of people and can be a valuable/important source of income. Know that it’s not passive, and comes with a lot of the challenges of another full-time job. To excel at this, you must be fully prepared for it.
I enjoy the work, but it doesn’t help me with FIRE
At least, not in a way that makes sense long-term. I mentioned earlier that this was a “five-figure” gig, right? Well, after factoring all our costs and taxes, Ian and I are splitting the rest down the middle. By my rough calculations, at this end of this six-month job, I’ll have an extra $2-3K in my pocket. It’s likely going straight to my medical bills, which I’m still dealing with.
No complaints here; my new computer and the cash buffer for bills are a godsend. But, this isn’t moving me toward my financial goals (my day job handles that just fine).
What’s Next?
Well, Ian and I keep working. Fingers crossed the client is impressed with our work and wants to keep us for another two years. The fun part is that this gig comes with travel; I’m going to Wyoming for a week in June, and Ian and I get to go to Cancun in October if we get the renewal. Scalable or not, this job offers a ton of opportunities that neither of us gets in our day jobs, and that, for now, makes it well worth it.
Has anyone found freelancing to be a completely different experience? I’d love to hear about it.
If you want to know more about my side hustle, I did a guest post for WFH Office that you can check out here.
Comments
I love freelancing. I love working from home. But the irregular income makes my head spin. I spend more time looking for work than actually working.
On top of that, I’ve hit a dry spell, which is normal. It’s a feast and famine industry. And I don’t like it. So while the pros are there and everyone knows them, it seems like not enough people don’t talk about the downsides.
Great post, Jane. Glad to see you back in action.
Agreed! I’m so grateful for the paycheck that I get from my day job because dealing with finances for the freelancing gig is a HUGE hassle. The bank that Ian’s been using refuses to accept a large deposit, and the client wants to pay for the entire contract term in one go, so we haven’t been paid yet for three months of work (which is not the client’s fault). I’ve never appreciated people who do admin work more.
I hope the dry spell clears up for you soon! It’s unfortunate that freelancing is so volatile :/
Man, this is too real.
I love when I can get a freelance job every now and then, but I’ve also had a dry spell.
Luckily I have the day job but I have done the full-time freelance route before. Do you freelance full-time?
I definitely don’t have the courage to freelance full-time, and as for WAPH, I think his latest post answers that!
Oof that sounds like a lot of work to balance. My second job doesn’t pay as well as your side hustle, but at least it’s a very clear clock in/clock out and no extra hours other than when I’m physically there. But definitely fingers crossed your contract gets renewed! Especially because a trip to Cancun doesn’t sound too bad 😉
I may have quoted a high hourly rate, but there’s a high chance my effective rate will be much lower if I end up working more hours than I initially predicted. It’s all good experience as I get used to this type of work. But yes, a free Cancun trip would be very sweet, indeed!