From 9 to 5 to Freelance Life: How to Transition Without Going Broke

By Julia Peterson

Have you ever gotten ready for work and just rethought your life choices? Wishing that you were super wealthy or that you were your own boss. Although leaving the 9 to 5 might be fun, it is a hard transition. Being able to go freelance could be something to consider. Freelancing isn't as glamorous because, despite the freedom, it is costly. It is different from having reliable checks. Here are some ways to transition without too much loss, such as saving capital, implementing a career plan, and connecting with the client base.

Secure a Financial Cushion

Funding is crucial for everything in life, especially when starting a business. In freelance work, the business is you. It is recommended that you have at least 3-6 months of savings just to survive. Those savings can cover expenses until you can receive more income. Having no savings and quitting your job to do freelance work is very bold. There is still rent, car, insurance, utilities, and groceries to pay for. Don't set yourself up for emotional and financial turmoil. Freelance demands so much, but it also allows for great creativity. It will be up to you to make it what it is if you can't wait but still want to be smart with your budget. You could dabble in freelance while still keeping your job. This way, you can get some experience without risking your financial capital.

Build Your Client Base Before You Leap

Having clients, even a small number, is better than having none. Building up your client list before quitting will also increase your chances of success. Having enough clients to sustain your lifestyle is the idea. This may require branching out and networking, whether in person or online. Through platforms such as LinkedIn, marketing your business gets more manageable. Of course, many social platforms can be used to acquire more clients, but LinkedIn is very popular for freelance work. Having clients before being fully freelance helps you gain experience, which can tell you whether freelance is sustainable.

Manage Your Finances Like a Boss

Now that you have shifted to freelance, budgeting and managing the income coming in. It is even more critical when you add taxes to the equation—managing the finances to make a profit while still paying for expenses. Taxes will differ as an independent contractor because you must now budget 25-30% of your earnings for taxes. That makes it even more critical to not mismanage your funds. Financial tools such as QuickBooks or HoneyBook can help manage freelance expenses and income.

Master the Art of Self-Discipline

You did it, you took those ideas, and made them a reality. Being the boss means setting up a structure and routine that works for you. It also helps productivity to have a set time to accomplish goals. Just because you may be working at home instead of an office doesn't change anything. Finding the balance between work and personal life gets messy. Separating work and personal life is necessary for mental sanity and to save yourself from burnout.

Embrace Uncertainty but Plan for Growth

There are moments during the freelance lifecycle when getting a client is challenging. There could be months where you make little to no money. Diversifying your income streams and growing your business can help you through those dry spells. Continue to network and expand your audience for more clients.

Conclusion

The truth is that being a freelancer puts you in control of what you want to do. It allows for flexibility and creativity that a 9-5 can provide. With the proper planning and budget, freelancers can be successful. Know exactly why you want to transition. Get a good amount of funding and set structure and routine. That can help you succeed now that you have gone freelance.