Going from W-2 worker to freelancer could reduce spending and increase earnings.
- Leaving a regular job to become a freelancer could result in money savings and an income boost.
- Commuting costs and expensive work attire are some costs that may be eliminated when you switch to a freelance role.
Becoming a freelancer was a great career move for me. I have more control over my schedule, choose what projects I take on, and can continue to travel the world. But becoming a freelancer has also been a financial win for me. Here are five ways freelancing has saved me money in my daily life:
1. No more commuting costs
Many workers don’t consider how much their commute costs them. Gas and toll expenses are typically the most significant expenses. However, those aren’t the only expenses.
When you use your car regularly and have a long commute, it puts more wear on your vehicle. That means more maintenance and repair costs over time.
I save a significant amount of money by being able to work from home. I have a vehicle, but I don’t have to pay for repairs as often since I don’t put a lot of miles on my car.
2. More time for me
Time is valuable. As the saying goes — time is money. As a freelance writer, I don’t need my vehicle for work. I save time by not having to drive to and from work every day. I also save time because I spend less time getting ready for the day. All of this time adds up, allowing me to spend more time making money and hanging out with the people I love.
3. Less wasted money on takeout
Freelancers have to eat, too. But I find I’m less tempted to spend money on takeout or unnecessary food and snack purchases. When I worked a regular job and had coworkers, going out for lunch was common. That resulted in a lot of excessive spending and I had less money in my bank accounts.
Now I mostly eat what’s already in my fridge. If I get takeout, I can plan it out better to ensure I’m following my budget and staying true to my financial goals.
4. No expensive work attire
Many jobs allow workers to dress more casually. But that’s not the case for every workplace. In some of my previous positions, I had to dress nicely. That meant I had to spend money maintaining a wardrobe of work-appropriate attire.
Now I can wear pajamas every day if I want. Not only is it more comfortable to work in casual clothes, but I also spend less money on clothing.
5.Unlimited income potential
I get paid for each project I do. So the more projects I do, the more money I make.
Typically, most W-2 workers have a set salary. While raises may be possible, some workers will find that there is a cap on how much they can ever make in a role.
As a freelancer, my income potential is unlimited. While I can only comfortably write so many words per day, and there are only so many hours in each day — I still control my income potential. I can do this by being selective of the projects I take on and my workload.
If I need to come up with more money to take care of an unexpected expense or reach a new financial goal, I can make that happen.
While freelance life isn’t for everyone, it works well for me and my family. As a freelancer, I can reduce my everyday expenses while also setting and reaching new income goals.
Is freelance life for you?
Is freelancing something that would work well for you? If you’re unsure, start small.
Getting a side hustle while working a regular job is a great way to test out the freelance lifestyle in your free time. Plus, there are many benefits to having a side hustle.
For example, you may be able to reach your debt payoff or savings goal faster, thanks to an increase in income. If your side hustle is profitable and you love what you do, you always have the option to become a freelancer on a full-time basis.
If you want to learn more about essential money matters, these personal finance resources may be helpful.
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