Hello! Today, I want to share a post from a freelancer friend. It’s a great read to get you motivated and ready to dive into freelancing. Enjoy!
I have a plan to make the big switch at the end of this year. It’s both exciting and nerve-wracking.
I’m the main breadwinner for our family of four. My husband became a stay-at-home dad in the summer of 2013 after our second child was born. So, it’s been my responsibility to earn income, and it will continue to be.
A Little Background
I started exploring freelancing and webpreneurship in April this year. It hasn’t been that long, but I’ve made some decent progress in the last six months.
I’ve been in the financial services industry for over eight years. At the beginning of this year, I reevaluated my career path and realized I needed a change. I couldn’t see myself happily sitting at the same desk for the next 10 or 20 years. One question that kept coming back to me was: “If I were in the same place three years from now in my career, would I feel fulfilled personally and professionally?”
I tried to find happiness in my current career. I proposed a growth plan to my practice, and we started discussing it. However, I realized that even if I were more successful or in a different role, it wouldn’t make me fulfilled. I’d probably earn more money and have more flexibility, but I’d still be doing things I didn’t enjoy. My passion just wasn’t there anymore.
Defining a New Dream
I enjoy personal finance, so I wondered how I could incorporate that into a new career. I’ve always loved writing and have been doing it as a hobby for over five years. Until now, I focused on personal blogs or fiction and didn’t realize the opportunities for non-fiction web writers.
A Google search led me to Leaving Work Behind, where I learned a lot from Tom Ewer’s journey into freelance writing. He inspired me immensely.
I signed up for his course, Paid to Blog, which taught me how to launch a website, create a Hire Me page, and start pitching for jobs. I also subscribed to his Paid to Blog Jobs, a paid job board where he and his assistant gather quality writing jobs from various sources. This has been invaluable for finding freelance jobs.
Thanks to Tom, I secured my first paid gig in June and an unpaid contributorship to The Huffington Post, which has been crucial to my success.
Putting In My Notice
Once I decided to become a freelance writer, I knew I needed to start my business as a side hustle to ensure it was viable. I spent April figuring out what I wanted to do, May setting up my website and taking Tom’s course, and June securing a mentor and publishing my first few articles.
After gaining traction and making some money, I set a goal to quit my day job by May 1, 2015. However, due to changes at work and discussions with my husband, I moved my goal up and put in my notice. I’ll be a full-time freelancer after the first of the year – no turning back now!
My Plans for 2015
They say you should have 6-12 months of expenses saved before going self-employed. I’ve been quasi self-employed for years with a fixed salary, so I understand the components. We’ve secured our own healthcare and I’ve been paying self-employment taxes for a while.
I’m fortunate to have a book of business to sell and will be contracting with my current office one day a week in 2015. This should almost replace my salary for the year, giving me confidence to make the leap. Now, if the stock market would just cooperate!
Being in the financial industry, I’ve always kept an emergency fund. We currently have 2.5 months’ worth of expenses saved and hope to have three months by the end of the year with my freelance income. Despite unexpected medical bills, a recent vacation, and dentist costs, we’ve managed to save.
Becoming Debt Free
We’ve aggressively paid down our debt over the past few years. We had mortgage debt, student loans, an auto note, and credit card balances. Through hard work and consistent payments, we now only have our first and second mortgage left.
Our plan is to use a portion of my freelance income to pay off our second mortgage by the end of 2015. Then, we’ll only have our first mortgage left – I can’t wait to make that last payment!
Starting 2016 on the Offensive
I should have income from my former business for 2015, providing a safety net while I ramp up my freelance writing and VA work. My husband became a stay-at-home dad almost a year and a half ago. We never planned on living off one income, but after baby number two, we realized we could make it work with some budget cuts.
Having one of us stay at home made sense for our family. I’m excited that the changes we’re making will allow me to spend more time with our family and have the flexibility to do fun things during the day.
By paying off our second mortgage next year, we’ll be in a better financial position and lower our monthly expenses. This will decrease our take-home need by about $1,000 per month.
We’ll Make It Work
Between my husband and me, we have a fair amount of skills. If my freelance business isn’t doing well, we’ll figure it out. We’re not too proud to find work to pay the bills. Either of us could go back to work or find a part-time job if needed.
What You Can Do
If you don’t have a practice to sell or can’t contract with your former employer, you can still make the jump to self-employment. It’s wise to prepare financially before making the leap. Some people succeed without a safety net, but for the rest of us, here are five steps to consider:
1. Make a Budget
Create a budget to know exactly how much you need to make to keep your household afloat. It can be as simple as writing down your expenses or using a software program like Mint.com.
2. Pay Down as Much Debt as Possible
Work on paying off your debt while you have predictable income. Start with the lowest balance and challenge yourself to pay it off quickly. Stop charging things you can’t pay off immediately and adopt a “no new debts” policy.
3. Start Your Business as a Side Hustle
Starting your business as a side hustle helps you determine if it’s viable and increases your income. Use the extra income to pay off debts and save money.
4. Build a Significant Cash Reserve
Aim to save 6-12 months’ worth of expenses before making the leap. Having cash on hand allows you to make better decisions and provides a safety net.
5. Have a Contingency Plan
Have a plan in case things don’t work out. Could you go back to work for your current employer, become a consultant, or find another job in your industry?
Everything Doesn’t Have to be Perfect First
It’s great to follow these steps, but reality rarely works out as planned. Do your best to prepare, but still take the leap when the opportunity presents itself.
I planned to transition on May 1, 2015, but I’m doing it five months sooner on January 1, 2015. I would have liked to have more cash reserves and our second mortgage paid off, but I’m okay with it.
I’m confident things will work out. My future as a webpreneur looks bright, and I’m ready to chase my dream and spend more time with my family. I’m ready, willing, and excited. Wish me luck!
What’s holding you back from taking the leap into self-employment?
Author bio: Gina Horkey is a freelance writer with a background in finance. She’s passionate about creating a flexible lifestyle for her young family of four and hopes to inspire others to do the same. She recently released “30 Days or Less,” an email course for new freelance writers. Visit Horkey HandBook to say hello or connect with her on Twitter, Facebook, or Pinterest.