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Some workers want more flexibility and control over their income, so they prefer freelance work. Find out more and learn what to consider before doing gig work.
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Many Americans no longer want to work traditional jobs and are switching to gig work and freelance roles. Unlike conventional jobs, which operate with set schedules and pay structures, freelancers have more control over their schedules, workload, and income potential.
While this type of work isn’t for everyone, more Americans are leaving the traditional workforce. Here are a few reasons why more people are making career changes and are choosing gig work in 2024.
Workers value a good work-life balance
Most traditional jobs give employees little control over their schedule and workload. Some employees’ work life bleeds into their free time. They may be expected to answer emails or be available for work in the evening. When you’re constantly in work mode, it can be challenging to enjoy your free time, and you may get minimal quality time with friends and family.
Some workers have had enough and want complete control over their personal and professional schedules. For that reason, many people want to start freelancing or take on gig work to prioritize spending more time with their families. Scheduling work around doctor appointments, family events, and your child’s school or sports commitments can be easier if you do gig work.
There is more room for income growth
As a contract worker or small business owner, you’re responsible for finding plenty of work to earn enough money to pay your bills. You need to work to earn money. However, many people choose gig work to have more control over their income.
Many traditional employees make a set income, and unless you qualify for overtime pay or get a raise, there’s little room for income growth. As a freelancer or gig worker, you control your income potential. This can be a freeing feeling if you previously worked in low-income roles.
You can make more money by prioritizing higher-paying work, increasing your hours, or working when there is more opportunity to make more money. If you’re unhappy with your current salary and want to boost your income, gig work may allow you to reach your goals.
They’re struggling to land full-time work
Many workers who have lost their jobs are struggling to land full-time work. Companies are hiring, but many people are applying for the same roles — so there’s a lot of competition.
While some workers qualify for unemployment benefits, today’s higher living costs make it difficult to afford life on benefits that are a fraction of what you were once paid. For those without emergency funds, gig work allows them to earn the money they need while looking for work.
They can pursue more meaningful work
Many freelancers prefer contract work over traditional jobs because they have more freedom to choose what work they do. There are more opportunities to seek out projects that are of personal interest. For others, gig work offers a chance to explore a new industry.
With limited experience outside of your current role or company, it can be harder to transition into a full-time position in a completely different industry. But gig work can make that possible. It can be more rewarding to have more control over your everyday workload.
Don’t overlook gig work
Whether you want to increase your bank account balance by taking on additional work in your free time or transition into a more flexible career, pay attention to gig work and freelancing opportunities. But consider how a change like this will impact your personal finances.
You should research self-employment taxes and additional costs associated with being a gig worker and consider how you will replace any employer-sponsored benefits that you have now, such as health insurance coverage. Building a solid emergency fund before making a life-changing career move like this is a great way to prepare financially.
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