Going from W-2 worker to self-employed could reduce expenses and increase income.
- Quitting a regular job to become self-employed could save money and increase income.
- Travel expenses and expensive work clothes are costs that can be eliminated when you transition to a freelance role.
Becoming independent was a great career development for me. I have more control over my schedule, I choose the projects I take on, and I can continue to travel the world. But becoming independent was also a financial victory for me. Here are five ways freelance work has saved me money in my daily life:
1. No more travel costs
Many workers do not consider the cost of their commute. Gasoline and toll expenses are usually the largest expenses. However, these are not the only expenses.
When you use your car regularly and take long trips, it increases the wear and tear on your vehicle. This means more maintenance and repair costs over time.
I save a lot of money by being able to work from home. I have a vehicle, but I don’t have to pay for repairs as often because I don’t put a lot of miles on my car.
2. More time for me
Time is precious. As the saying goes, time is money. As a freelance writer, I don’t need my vehicle to work. I save time because I don’t have to drive to work every day. I also save time because I spend less time getting ready for the day. All of that time adds up, allowing me to spend more time earning money and spending time with the people I love.
3. Less wasted money on the go
Freelancers need to eat too. But I find that I’m less tempted to spend money on takeout or unnecessary shopping for food and snacks. When I had a regular job and had co-workers, going out to lunch was common. This resulted in a lot of overspending and I had less money in my bank accounts.
Now I mostly eat what is already in my fridge. If I get takeout, I can plan it better to make sure I stick to my budget and stick to my financial goals.
4. No expensive work clothes
Many jobs allow workers to dress more casually. But this is not the case for all workplaces. In some of my previous positions, I had to dress well. This meant I had to spend money maintaining a wardrobe of work-appropriate clothing.
Now I can wear pajamas all day if I want. Not only is it more comfortable to work in casual clothes, but I also spend less money on clothes.
5. Unlimited income potential
I get paid for every project I do. So the more projects I do, the more money I make.
Typically, most W-2 workers have a fixed salary. While increases may be possible, some workers will find that there is a cap on how much they can earn in a role.
As a freelancer, my earning potential is limitless. Although I can only comfortably write a certain number of words per day and there are only a certain number of hours per day, I am still in control of my earning potential. I can do this by being selective about the projects I take on and my workload.
If I need to find more money to meet an unexpected expense or reach a new financial goal, I can do it.
Although independent living is not for everyone, it works well for me and my family. As a freelancer, I can reduce my daily expenses while setting and meeting new income goals.
Is the freelance life for you?
Would freelance work suit you? If you’re not sure, start small.
Getting a side hustle while working a regular job is a great way to test out the freelance lifestyle in your spare time. Plus, there are many benefits to having a side hustle.
For example, you may be able to reach your debt repayment or savings goal more quickly due to increased income. If your side business is profitable and you love what you do, you always have the option of becoming a full-time self-employed person.
If you want to learn more about essential financial matters, these personal finance resources may be helpful.
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