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Do you want to be more successful as a freelancer or gig worker in 2024? Check out one move that could help you boost your income and protect your finances.
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Many workers hope to take on a side hustle or shift their career toward gig work in 2024. Being a freelancer or small business owner is ideal for many people because it can offer more flexibility and more income potential.
If you’re considering getting into gig work this year or want to expand your freelance business in 2024, one strategy could help you be more successful.
Don’t rely on one income source
As you explore the gig economy, you may feel tempted to stick with one opportunity or gig. Doing this may make you feel more comfortable because you’re already familiar with the work and know what to expect. But there is some financial risk to this strategy.
Without notice, a good work situation can quickly change. There may come a time when fewer opportunities for work are available, meaning you can only make a fraction of the money you once made. Having less money coming in can cause significant stress when you have bills to pay. That’s why you don’t want to rely on only one source of income.
Learn from my experience of losing an anchor client
There have been highs and lows throughout my seven years as a freelance writer. I’m happy to report that I’ve experienced more good than bad, but I’ve had my fair share of struggles. Many freelance writers aim to land an anchor client. These long-term clients provide steady work — so they offer more financial stability.
But once you land an anchor client, you shouldn’t stop looking for more work. You may have plenty of work and make good money now, but that can change overnight. In 2019, I was doing well as a freelance travel writer. I spent most of my time writing for an agency that managed two travel websites, and this work made up a significant portion of my income.
It was a dream gig — my managing editor was friendly and a great communicator, I received weekly pay, and could write about topics of personal interest to me. I continued to take on small projects elsewhere but devoted much of my time to this anchor client.
In October of that year, only a couple of months after my husband and I bought our first home and right after finding out that our furnace needed to be replaced, I was told that within two weeks, no more work would be available, as the client had decided to shift gears and shut down both websites.
As you might imagine, this was shocking and upsetting news for my husband and me. I had been saving all year, but much of the money in my savings account had gone toward our home down payment and closing costs. Plus, we needed to replace our furnace before winter.
2020 was a challenging year for many reasons. Losing that anchor client and additional travel writing work due to the pandemic topped my stressors. While it all worked out, it was a tough few months while I worked to rebuild my client base.
Diversify your income
That challenging chapter of my life taught me to never rely on one anchor client. I now have several anchor clients because I know that even the best gig can disappear overnight. If you’re a gig worker or small business owner, you can benefit by diversifying your income streams. With this strategy, you can still earn money if one income source becomes less reliable.
It’s also a good idea to build a solid emergency fund and continue saving, especially when work is plentiful. I continue to contribute money to my emergency fund every month because I want to avoid a situation where the loss of a writing client means I can’t afford my bills.
No matter what kind of gig work you do, consider how your everyday actions will impact your business bank account. It’s best to make strategic moves that allow you to protect yourself financially. For additional tips, check out these personal finance resources.
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