From Full-Time to Freelance: How to Transition
Black Enterprise Magazine July/August 2018 Issue

So you’ve made the decision to go from full-time to freelance. You’re ready to take the leap without fear. Well, it’s good to be prepared and know the best place to start so you won’t be shaking your head with regrets a few months into self-employment. Check out these steps to transitioning:

1. Budget for an inconsistent income every single month. One of the most obvious factors to consider is your budget. Do you have enough money to actually pull this off, or will you be starving after your first few months? If it’s the latter, you may want to wait a little bit longer. Save up before severing ties with your solid income source.

If you do have some money saved up, consider if it’s enough to really float you if you get stiffed. You may have encountered this unpleasant reality of freelancing before, but if a client decides they don’t want to pay for whatever reason, the consequences will be more serious. Before you had your steady W-2 income to fall back on; now every second you’re not paid means you don’t get to eat.

Even if everything goes right and everyone pays, you still need to consider taxes. Since you don’t have an employer, you have to pay your own taxes–including extra to cover the self-employment tax. Quarterly estimated taxes will become your life. Every few months, you will have to pay up to the government. These payments are higher than taxes you paid as a salaried or hourly worker when your employer threw in to help you.

Read more at Brazen Careerist …

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Janell Hazelwood

Janell Hazelwood is associate managing editor at Black Enterprise, managing content across core areas of Money, Career, Small Business and Technology. She is also a featured blogger with My Two Cents, providing insights on branding, millennial career development, employment trends and leadership. She was previously a content producer and copy editor for Black Enterprise magazine, working across several editorial sections. The Hampton University graduate got her start in the newspaper industry, having worked for companies including The New York Times and Scripps Howard News Service. Her works and insights have appeared on The Huffington Post, MadameNoire, E!Online, Brazen Careerist, CBS News, and Arise TV.


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