Tag / Freelancer

by caitlyncallahan14

vision boards

Since I was a child, I’ve been encouraged to set goals and do what I need to do – whatever it took – to accomplish them.

Whether it was getting an “A” in a class, landing my first (or second, or third) job, being accepted to college, earning my master’s degree, studying abroad, moving to a new city, starting my business… it started with having a goal. Once I had the goal, I had to envision accomplishing it. Sometimes, that included making a plan for getting there. Other times it was simply doing what it took – staying at practice longer than everyone else, constantly reading and writing to improve my craft, setting up my Upwork profile to begin my freelancing career.

Recently I’ve been taking a long, hard look at my life and what my next goals are. I’ve accomplished a lot in my 27 years so far, and this year has been a whirlwind both physically and emotionally. As I check things off my bucket list, such as formalizing my consulting business, I’ve realized it’s time to set my next one, five and even 10 year goals, in addition to focusing on the next 3-6 months.

Most of the time, I make a list of my goals. This week, I tried something different.

Have you ever heard of vision boarding? It’s when you cut or print photos of what you want in your life, or how you want your life to be, and pin it on a board where you can look at it every day. I had a vision board once – house, car, engagement ring, family, beach condo, a book with my byline. I still have many of those goals. They say visualizing your goals is a great way to accomplish them. But after reading the book You Are a Writer (so start ACTING like one) by Jeff Goins, I had another plan.

His words encouraged me to start writing again for the sake of writing, because I love it, with no rules or purpose. As I sat at my desk and thought about it, I was encouraged with an idea – to develop a vision board, but with words.

A vision immediately flooded my mind. Waking up (no alarm) next to my boyfriend, our dog at my feet. Tip-toeing out of bed, puttering across our kitchen and living room, to the back patio sliding door. Opening it. A gush of salty sea air hitting my face. Journaling and meditation on the porch with a cup of coffee, sun in my face. Gathering my things and walking down to the beach. Setting up my spot, and opening my laptop to check emails and log time for my clients. The vision is my family five years from now, living in our little beach house in the Carolinas, freelancing full time and living the life I’ve always dreamed.

As I wrote, 3,000 words poured from my fingertips. I felt myself being embodied by my vision. I embraced my thoughts and the feeling of pure joy and excitement to be living the life I’ve imagined. It made me excited and to be honest, I got a slight thrill. Butterflies in the pit of my stomach. It was exhilarating to envision my life the way I want it to be, and write about it as it is truth. I imagined a future journal entry celebrating how far I’ve come accomplishing my goals and it felt amazing.

I’ve decided I’m going to make this at least weekly personal development time. Taking time to focus on building and envisioning my goals will help me prepare for them better and accomplish them faster.

REFLECTION: How do you keep track of your goals? What do you to do work toward accomplishing them? What goals are you working toward now? Leave your story in the comments!

by caitlyncallahan14

questions to ask yourself

No alarms. Writing when I want to. Working from where I want to be – be it a coffee shop, mom’s house, or my bed. Choosing which projects I want to work on, and what clients I want to work with. Avoiding long commutes, traffic, and scraping snow off my car at 7 a.m. to get to work on time. Answering to only myself, and building my business how I want to build it.

Recently I’ve been asking myself more and more how I can better prepare to be a full-time consultant/freelancer.

With the changing of the seasons, I’m renewing my focus on building my business, client list and portfolio. I’m falling back in love with writing and new excitement working for my clients. And although I recently started a new job and I’m loving the people and the organization, I’m also realizing a little more every day that I’m not made for corporate work style, and I need to work harder to be prepared for a change.

What’s really got me thinking is a girl at my new job recently put in her notice. She’s taking time to travel, freelance and do her own thing. She’s been saving for awhile and now was the time for her. And I’m so jealous.

I have a separate savings account for my freelancing and everything I earn from my clients goes into that account. While I’m happy with where it’s at so far, I’ve been wondering what it really will take to be able to quit my corporate job and freelance full time. I haven’t pulled the trigger because frankly, I’m scared,  and I like to be over-prepared.

I recently did some research in order to answer some questions and help me prepare. Here are some questions you should ask yourself before you decide to freelance full time, and things to consider when determining if you’re ready.

What’s your bare minimum budget?

Before knowing how much money you should have saved, you need to calculate your bare minimum monthly budget.

Think about all of the monthly expenses you have, including rent or mortgage, utilities and other bills, groceries, loans (such as auto or student), credit card payments, and extra for clothing, dining out, etc. Also consider how much you’ll need for health insurance, self-employment taxes, and funding your own retirement account – all things you’d have with a full-time or corporate job, but not self-employed. Don’t forget to add in any freelance costs you may incur, such as fees or office supplies.

One way to help you prepare is to track your budget for three months. Write down every single thing you spend money on, and how much it costs. You can use a notebook, spreadsheet, or budget tracking app. However you do it, having an accurate depiction of what you spend can help you budget for the future.

Also list all of the benefits you’ll be giving up, such as 401k deductions, health insurance, vacation days, etc.

Additional considerations include:

  • Insurance: Having medical insurance is mandatory, so if you’re freelancing full-time you’ll have to purchase private insurance. For healthy young adults, it can be as little as $70 per month. I’ve quoted some companies and get around $75-80 per month. Doing research on your insurance options and comparing quotes can help you save money with the best coverage. Keep in mind some providers require a 30-day application process, so do this research well in advance of needing it to avoid a coverage lapse.
  • Taxes: Self-employment taxes is a whole different ball game. I recommend meeting with a financial advisor or accountant to help you ensure you’re filing the right things at the right time in the right way. How much to estimate for taxes depends on how much money you make and what state you live in. It also depends on if you’re filing self-employment taxes, or income from a business or LLC. If your clients aren’t taking taxes out of your checks, you’ll need to pay quarterly taxes to the IRS to avoid fees and penalties. Some cities may require you to file both state and city income tax. You should plan on paying at least 30-40% of your income in taxes to be safe, but talking to a professional about your specific scenario can help you find more of an appropriate estimate.
  • Retirement: Just because you’re freelancing and not committing an income percentage to an established 401k account through your employer doesn’t mean you shouldn’t be saving. If you have an account from a former employer, consider rolling it into an IRA or mutual fund. At the very least, set aside a percentage of your freelance income to a separate retirement savings account as to not get behind.
  • Business expenses. Don’t forget about the business expenses you may incur while freelancing, such as a business license, liability insurance, website development, training and professional development, office equipment and software, and other print or digital collateral.

How much money do I have saved? 

This question holds many freelancers back – including me – because they want to make sure they have a secure source of income to pay the bills after they quit their job. Obviously, the more money you have the better. Ask yourself, how long would your current savings last? If your freelance career isn’t already established or you don’t yet have existing clients, how long can you support yourself until you get your career going?

Make a list of all of your existing expenses, and estimate your additional expenses (health insurance, etc.). Once you have your total monthly expenses, multiply this by how many months you want savings in case of emergencies. Some experts suggest you have at least 3-6 months worth of expenses in a separate account, but others recommend freelancers double this amount for added risk of being self-employed.

For me, I calculated I need about $3,000 per month for expenses, and I wanted eight months of expenses saved up. That means I need about $24,000 in my separate savings account to feel comfortable transitioning to full-time freelancing. Personally, I am not including dollars I already have in my traditional checking and savings account, or retirement funds already contributed.

Another consideration is estimated costs incurred with life, such as buying a house, having a baby, or taking a trip. In order to support these expenses, you’ll need to continue actively earning income. The extra savings is to support you in case of an emergency or slow time with clients, not fully support you month-to-month.

How can I generate a passive income stream? 

Making more money, especially when you first start freelancing, can make life easier. That’s why it may be helpful to generate additional income streams that don’t require you to actively work. Here are some examples:

    • Develop an e-book or guide people have to pay to download
    • Create an online course that teaches a specific skill you’re an expert at
    • Affiliate marketing (use your website or other platform to promote other companies, who pay you for your promotion). You can do this on your website, podcast, YouTube channel, other social media or other platform.
    • Add display ads or cost per click ads to your blog or website
    • Work with a financial advisor to invest dollars in high-return stocks or other funds
    • Sell stock photos
    • Creating an audiobook
    • Create a digital product, such as course, upgraded package with additional information, downloadable assets, etc.

There are even options not related to your freelance expertise, such as:

  1. Cashback sites or apps
  2. Cashback credit card
  3. Rent out a room, or Airbnb your home
  4. Sell clothes, bags, shoes, or anything else you have that you no longer need. You can use online platforms such as Poshmark so you don’t even have to leave your home.

Do I have a backup plan? 

Even if you have the savings account, passive income avenues, and work hard building your client list, your freelance plan may not work out. If that happens, do you have a backup plan? What if you use your savings and aren’t earning enough to pay off your minimum monthly budget – what next?

It may be helpful to plan for this scenario before taking the leap. Don’t look at it as a way of inevitably failing. Instead, use it as part of your business plan. Will you find another full-time job? Can your partner or spouse cover expenses for a few months? How can you cut your monthly expenses to generate additional savings? Having a back up plan can help you feel confident and secure in quitting your day-job.

Quitting your full-time job and freelancing or consulting is a huge leap of faith, but the payoff can be incredible. However, it takes work, dedication and passion. How much time will you dedicate to perfecting your craft and business? How many hours can you dedicate to communicating with clients and finding work? How many hours can you spend building your website, blog, and working for other clients?

Especially at first, you may have to work harder and longer than you would at a full-time job. But the payoff will be worth it in the end.

REFLECTION: Have you made the move to full-time freelancing? How did you plan for it? How did the transition go? Do you have any tips or suggestions for anyone wanting to do the same? Share your responses in the comments below!

by caitlyncallahan14

full-time freelancing

Week 26

A few weeks ago, I wrote about the challenge of finding balance between working full time and freelancing the hours I’m contracted for, let alone adding additional clients. Recently I’ve been analyzing my goals for 2019, business goals and career goals and thinking about how I will be able to accomplish all of them – especially because one goal is to have the ability to freelance full time by the end of 2019.

Over the weekend I worked through a budgeting exercise to learn what I need to do to make this possible. Here are the steps I took.

First, I added together:

  1. Cost of my reoccurring monthly bills
  2. Estimated monthly cost for health insurance (since I would no longer have employer health insurance)
  3. Estimated monthly “set aside” dollars (money I’d set aside and not access, like a 401k)
  4. Estimated “other” charges

Once I added #1-4 together, I estimated how much salary I’d have to make to meet those needs.

Then, I added 43% for taxes, which is what I would have to pay in Kentucky as an LLC.

Once I had that total, I divided it by 52 to learn how much I would have to make weekly.

Finally, I divided by 25, 30 and 40 to learn how much I would have to charge hourly to make these ends meet.

Here’s an example*:

  1. Bills: $800/mo – $9,600/year
  2. Health insurance: $200/mo – $2,400/year
  3. Set aside: $500/mo – $6,000/year
  4. “Other”: $2,000 – $24,000/year

Total: $3,500 per month (about $1,175 per week)
Minimum annual salary before taxes: $42,000
Minimum annual salary plus taxes: around $61,000

  • To make $1,175 per week, working 40 hours per week, I’d charge a minimum of $29.38 per hour.
  • To work 30 hours per week, I’d have to charge $39.16 per hour.
  • To work 25 hours per week, I’d have to charge $47 per hour.

Currently, I have one client at $30 per hour (20 hours per week) and another at $35 per hour (5 hours per week). If I logged all 25, I’d currently clock in around $700 per week (subtracting Upwork fees). Using the above scenario, that leaves me with a gap of $475, which at $45 per hour, I’d have to tack on an additional 10.5 hours to my week. That’s 35 hours per week – 5 less than I’m currently working with my full-time job.

To make this a reality, I’d only have to work one more client at $45 per hour.

The goal would then be to secure higher-paying hourly jobs, end the lower-paying contracts, and be able to work less hours while also charging more money.

The other goal would be to charge on a per-project basis, where I’m charging closer to $100 per hour, and work even fewer hours while making more money.

It’s challenging to balance current clients while working full time. To build my business, I need either 1. More hours in the day or 2. To give up sleep and/or any/all free time. While I can’t grow without bringing on more clients, I also can’t bring on more clients with my current workload.

Sometimes I wonder if now is the time to take the chance. If I’m able to add on just one more client, is that a sign? In my head, worst case scenario, I can’t make ends meet, I have to tap into savings, and I have to get back into a full-time job.

But, it doesn’t seem so daunting once it’s broken down into smaller numbers!

So, questions for my readers:

  1. How did you know you were ready to take the jump and freelance full time?
  2. What mistakes did you make that you learned from?
  3. What advice do you have for someone looking to make the leap?
*Note: I am not a math whiz. Some of these calculations may be inaccurate or estimates. But it helps prove my point!
by caitlyncallahan14

guiding the guilt

Week 23

Last week I read an article on LinkedIn by a freelancer sharing the surprising feelings she’s experienced since becoming a freelancer. One feeling she talked about that really resonated with me, though I didn’t really recognize until then, was guilt.

There are a lot of emotions I’ve had since I started this freelance journey: excitement, pride, nerves, stress, motivated, determined. But one emotion I’ve consistently had, and feel almost every day, is guilt.

Guilt because on top of working 40 hours a week, I spend an additional 20+ hours working instead of spending time with my family. Guilt because there are times I should be writing, but instead I choose to read or watch Netflix. Guilt because when I spend an evening writing, I don’t have time to clean the house, do the laundry, or take care of the dog. Guilt because some weeks I don’t make enough time during the week to log my hours, so I have to spend the whole weekend catching up instead of doing fun things with my partner. Guilt because I haven’t done anything for my own website in weeks because I’ve been focusing on my Upwork clients.

Being a freelancer, especially in addition to working a full-time job, takes sacrifices that sometimes I don’t want to make. However, to build my portfolio, and make a paycheck, those sacrifices are necessary. So how do I get beyond feeling guilty?

I decided to do a quick Google search to see if anyone had any tips out there to help. Turns out, there are more than 1.3 million results to “Feeling guilty as a freelancer.” Apparently, this is very common! So if you’re resonating with this post, don’t feel bad – you’re not alone!

Here are some tips I gathered from a variety of sources to ditch the guilt and make the most of your freelance career:

  1. Establish your own routine. If you work a full-time job – like me – you are probably only working nights and weekends for your clients. But as long as you are getting the work done, whether it’s by working two nights or seven, that’s what matters. Don’t miss deadlines and always produce quality work, and your clients have nothing to complain or worry about. It doesn’t matter when or how you’re getting it done.
  2. Improve your time management. If you’re sitting at your desk multi-tasking for five hours a night, that’s not being productive. Put your phone away, close your browsers (except ones you need for research), shut the door and turn off any other distractions. You can probably get more done in two hours than you had been in five. It’s a proven fact that multi-tasking is not possible or productive. So instead, spend time focusing on your actual work and you’ll spend less time doing it.
  3. Know your self-worth. If a client is constantly emailing, texting or calling you, being unreasonable, or making demands beyond what you’re getting paid to do, drop them! Not every client is right for you, and have confidence in yourself that you don’t have to put up with the wrong ones. The beauty of freelancing is choosing your clients and work, so if you don’t like one, move on to the next! This may take additional time and energy at first, especially if you don’t have clients lined up on a waiting list, but it will be worth it in the end.
  4. Up your rates. If you’re earning more money, you can work less hours. If you’re just starting out you may not be at that point yet. But if you’re working on a platform like Upwork, experiment with different applications for clients. Try increasing your rates for a couple applications and see if you can get a bite. It will take time to figure out your sweet spot, but the more money you make the better for you and your time.
  5. Know when to say no. If you’re already feeling overwhelmed, don’t take on additional clients. While a greater paycheck and one more client on your portfolio list is tempting, it might be what sets you over the edge. Learn to balance the clients you do have, and once you get that down, then consider taking on another one. Or, if a client that you’re really interested in or pays well contacts you, consider taking them on and dropping off one of your current ones. Only you know the relationship you have with current clients, and the benefits bringing a new one on would bring. But don’t be afraid to say no!
  6. Figure out what works for you. Don’t compare yourself to other freelancers. Maybe they freelance full-time and don’t have to worry about 40 hours of their week being spent at a corporate desk. Or perhaps they’ve been doing this for 20 years while you’re just starting out. There will always be someone out there doing better and making more money than you. You won’t be there in the beginning – it took them years to get to where they are now. You’ll get there eventually!
  7. Find your support team. Mine is my parents and partner. Yours could be family or friends. Maybe you just have a dog. Whoever or whatever it is, make sure you surround yourself with at least one person who will cheer you on and support your efforts. Find your person to cry to when you’re overwhelmed, celebrate your wins, and talk you down from the ledge when you’re feeling guilty. It’s difficult to do this alone, and having someone to talk to can help you work through your feelings – good and bad.
  8. Find a mentor. While you shouldn’t compare yourself to other freelancers, finding one to talk to can be helpful. If they are farther than you on their journey, they can give you tips for how to build clients, balance your work and life, and get through the guilt hump. They can give you advice and guide you through challenges and feelings. They can also help you be accountable. Share with them your goals, and explain how or why you did or did not accomplish them. They can help you through roadblocks or be your cheerleader.
  9. Keep a journal. By writing down your thoughts and feelings, even just to yourself, you may be able to talk yourself off your own ledge. Writing can help you work through your priorities, give yourself advice, or provide enough distance from yourself to have clarity. Write like you’re writing to a friend. Give yourself the advice you’d give to someone else in your shoes. By writing about and thinking through your emotions, you can find the cause of them and tackle the issues at the root.
  10. Put yourself first. If you don’t put yourself first sometimes, you’re going to burn out quickly. Finding a work-life balance is critical to avoid stress – and then you’ll be no use to anyone. If you burn yourself out, you’ll struggle with continuing to build your business, which will hurt both you and your clients.

Freelancing is challenging, but no one said it would be easy. Working through the different emotions, understanding them, and recognizing ways around or through them is part of the process.