Freelancing: A More Secure Path Than Traditional Employment
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The Illusion of Job Stability
Many people operate under the belief that working for someone else offers the most reliable way to support themselves and their families. This belief is a significant factor driving the majority of Americans to seek employment with others. Even those dabbling in side hustles often perceive their traditional jobs as providing necessary stability, with many part-time freelancers citing "concerns over income predictability" as their primary reason for maintaining their day jobs.
This notion is a myth—self-employment is deemed risky, and the narrative encourages individuals to rely on others for their security. While it's true that self-employment carries its own risks, assuming that conventional employment is inherently safer is misguided. For example, the U.S. economy saw a loss of 22 million jobs from February to April 2020. To put this in context, more jobs were lost in just two months than during the entire Great Recession. The way benefits are structured in the U.S. left countless individuals without health insurance during a global health crisis.
Fast forward a year, and record numbers of people are resigning from their jobs in search of better pay, flexibility, and fulfillment. Many are turning to freelancing, and the landscape is ripe with opportunities. As remote work becomes more common, companies are increasingly inclined to engage independent contractors. The shift toward a blended workforce means that freelancers, especially those working full-time, are in higher demand than ever.
Freelancers are on the forefront of the evolving economy, better equipped to navigate volatile markets. By creating multiple, resilient income streams, they safeguard themselves against uncertainty, unlike those who depend entirely on a single employer for their income.
As Nassim Nicholas Taleb puts it, "The three most harmful addictions are heroin, carbohydrates, and a monthly salary."
Why Freelancing Offers Greater Security
Benefits of Employment Are Deteriorating
Job perks have become less reliable over the years. Past generations could count on benefits such as pensions, providing them with security after years of work. However, the current economic landscape makes it increasingly difficult for many to maintain a middle-class lifestyle due to stagnant wages failing to keep pace with the rising cost of living.
It's essential to acknowledge that income and benefits have never been equitably distributed among various demographic groups, including minorities, women, and low-wage workers—a trend that is unfortunately worsening.
Freelancing empowers individuals to determine their worth and remuneration. Research shows that 62% of freelancers earn as much or more than they would in traditional employment.
Diversification Minimizes Risk
Putting all your eggs in one basket has never been wise. So, why is it considered reasonable to place all your employment reliance on a single entity? The average freelancer manages at least three clients, which means that losing one client only results in a small fraction of their income being impacted.
Additionally, many freelancers develop passive income streams through courses and packaged offerings, further stabilizing their revenue. This diversification creates a more secure financial landscape.
The Fragility of Traditional Employment
When you work for yourself, you are responsible for securing your benefits. While this can feel daunting, it also means that your benefits are portable and not tied to any single employer. You don't have to worry about losing your health insurance if you decide to leave a job.
You Can Choose Your Clients
Freelancing provides built-in resilience, not only making income more stable but also offering the freedom to work with clients you genuinely enjoy. Those who are reliant on one employer often tolerate difficult situations due to a lack of options. Money is power, and when your sole source of income is a single employer, they hold considerable leverage over you.
Freelancers, however, enjoy a diversified income that allows them to sever ties with challenging clients without fear of losing their entire livelihood. This decentralized approach to work is inherently more adaptable to chaos than traditional employment models. Recent events have underscored the importance of being prepared for unexpected challenges.
As conventional employment continues to fall short in terms of pay, benefits, flexibility, and personal fulfillment, the freelance economy is becoming increasingly appealing to both newcomers to the job market and seasoned professionals seeking more than what their 9-to-5 can offer.
I encourage you to consider this path. Transitioning to self-employment has granted me a level of freedom, satisfaction, and financial success that I never experienced while working for others.
Is it always simple? Absolutely not. Being your own boss comes with its unique set of challenges. For me, the rewards have consistently outweighed the risks, and I've worked diligently to make it work. Even during uncertain times, I feel confident in my decision and can't envision returning to a traditional job.
Stability is not something given; it is something you must construct for yourself, piece by piece.
© Fruition Initiatives 2022
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Chapter 1: The Reality of Freelancing
This chapter explores the myths surrounding traditional employment and highlights the advantages of freelancing.
The first video delves into the realities of freelancing, discussing both the perks and challenges of this career path.
Chapter 2: Weighing Your Options
In this chapter, we examine the choice between freelancing and traditional employment.
The second video contrasts freelancing with full-time jobs, helping viewers evaluate their career paths.