15/09/2021
What are the risks of freelancing?
Freelancing comes with both financial and some health risks. In the United States, one of the biggest benefits to full time employment is access to healthcare and other financial benefits outside of your typical salary. That may include a 401K retirement plan or company-provided health insurance. For freelancers, being hired as an independent contractor generally means companies will not provide those same financial or healthcare benefits to you. So freelancers are on their own when it comes to planning for their financial futures and enrolling in health insurance coverage. Not only are freelancers on their own to set these benefits up for themselves, but they are also at a bit of a disadvantage. When a company negotiates a health insurance policy with a broker, they are often able to get more favorable rates since they are buying in bulk. But as a self-employed individual, you are buying a policy for yourself and your family only. And, unfortunately, that means your health insurance may cost more. It is easy to set up your own retirement savings account, but there will not be any matching contributions from your employer. And finally, freelancers are responsible for all income coming into the business. If you are unable or unwilling to sell more projects and land more clients, your income will dry up. These risks are all manageable, but they are worth
considering before you jump into freelancing full time. 🤔😉❓
For more information and to know more about the risk of a freelancer ,kindly click the link: https://freelancing.school/what-is-freelancing/
