Freelancing vs Full-Time Job: An Overview

Freelancing vs Full-Time Job: An Overview

Many developers love the idea of freelancing.

  • More freedom
  • Longer vacations
  • Working from home
  • Not answering to a boss

Sounds nice, right?

While there is nothing wrong with this idea, it does skim over some of the finer details that we tend to ignore when weighing up the benefits of freelancing vs. working a full-time job.

Before we get started. Freelancing is NOT for everyone, but I do want to encourage you to at least try it.

With that said, we're going to look at what makes freelancing so appealing, how it compares to the 'Full-Time Job life', and whether you should try it.

Freelancing

The idea of a freelance developer conjures up images of someone in their PJ's, waking up in the afternoon and working in bed or the kind of people who have the absolute freedom to do as they please when they please for as long as they please.

(not true)

As with anything in life, there are pros and cons.

Here are the pros and cons of freelancing:

Pros

You get to be your own boss.

This means you make the decisions and you set the schedule.

While some may view this is a negative thing, I view this as an awesome benefit.

This to me, is a great aspect of freedom.

In saying that, it does come with its own responsibilies, but the pros to this far exceed the cons.

Flexibility.

If you are a night-owl, you won't have to dread those 9am-at-the-desk workdays because you can simply start working at whatever time suits you.

If you have children, you can take them to the park or the beach or pretty much anything during the day and you can then choose to work at night if you wish.

Want to take a few hours off during the day to go play some tennis or go for a surf?

Done...

Income is not capped.

As a freelancer, you will have the potential to earn more than you would if you have a full-time job.

The beauty of this is that it's not tied down to how much time you spend actually working (as long as you charge based on value and not by the hour).

So you could essentially earn more, while working less.

Control

A general theme throughout the pros so far has been one of control. Controlling your daily movements, controlling your work schedule, controlling your income flow... Control is king is the freelance world.

You can start small

You don't have to aim for the big $5k or $10k projects. Maybe you just need a few hundred dollars on the side each month.

Either way, starting small is always a great way to start with freelancing.

Cons

The grass isn't always greener on the other side.

Many freelancers can earn a great income this month and then a terrible income the next.

This is known (at least by me) as the "Valley Income".

Now, there are a few tips I have to reduce or avoid this all together, but it's definitely a reality for a lot of freelancers.

Remember when I said that it's a pro to be your own boss?

This still holds true, but with client work there is the potential of micro-managing mini-bosses who will need careful people-managing skills on your part to navigate professionally.

So while you are still your own boss, a bad client could mean that you could be an "employee" if it's not handled right from the start.

The lack of a daily office environment and the interaction amongst varying personality types of people can leave freelancers and remote-workers feeling quite lonely if you don't go out and interact with others on a regular basis.

As much as you'll need to set aside time for client work, you'll need to regularly do yourself a favor and schedule "social-time".

Full-Time Job

A full-time job can vary immensely in the life-satisfaction it provides for those who have one but it is the route most people take for one reason: security.

Yes, this is a massive generalization, but most people are not working at their "dream companies" doing work that "fulfills" them.

They're working full-time jobs because they need the money every month without fail to survive, send their kids to school and, hopefully, do the things they love when they have the time.

We, as humans, are prone to anxiety - especially when it comes to future concerns.

A full-time job eases that for us by saying, "Here is the money you will receive every month for the foreseeable future".

There are more tangible benefits that leave people feeling very content.

Such as:

Pros

Stability and security.

This comes in the form of an employment contract where a salary is paid every month with the possibility of performance bonuses and a bonus cheque.

This is what allows people to plan holidays, pay towards debt and/or take out home and car loans.

It is worth noting that freelancers are also able to achieve this with careful planning and recurring clients through retainers set up in client proposals.

Other perks

Apart from the security a salary provides, most full-time employment often comes with added perks such as:

  • Health insurance
  • Paid vacations
  • Sick leave
  • Parental leave
  • Retirement schemes

...and other perks depending on your employer.

I think most freelancers would agree that this is the one thing often overlooked when people decide to switch from full-time to freelancing.

Again, freelancers need to plan carefully so that they are not caught out when health and other issues pop up.

Training

This can be useful in a field such as tech where we are constantly learning.

A company can pays for further education or events to improve your skillset. This is invaluable, and it's something we should all be doing, regardless.

A network of support.

An inclusive network can go a long way in sustaining your work effort and psychological equilibrium in the long-run. Not only is it great for social interaction, but it's also great for learning from how your fellow colleagues do their work.

Cons

I think there are dozens of cons, but let's look at a few of them:

Office politics.

Every office always has an Office Lobster (or two or three).

I'm not going to go further, because I don't want to be "cancelled" ;) but you know what I mean.

Capped Income.

Let's say you're earning $50k a year. To earn $80k within the next 2 years is quite a push (although not impossible).

With freelancing, you don't have a ceiling. Your income potential could, with an improved strategy, increase drastically.

Not only that, but with freelancing, you're building an asset you could potentially sell.

You're just a number.

Although not always true, it's true for a lot of people right now and it sucks. You don't feel valued and you feel unappreciated.

You're working on someone else's dream.

We all have dreams and one life. It's fine working on someone else's dream, but don't do it at the expense of your own contentment, sanity and free will.

Which One is Right for Me?

In short, it's your choice :)

So much of this is personality-dependent and you have to dive into your motivation for wanting to do freelance or full-time work.

It's also important to remember that your choice does not bind you forever.

Ultimately, there can be immense satisfaction and freedom in freelancing. Even if you don't freelance full-time, you can take on a couple of freelance projects as a side-hustle to complement your full-time job.

To make it easier for you. If you're:

  • Not getting paid enough
  • You want more control
  • You want more freedom
  • You want more time with your family
  • You don't enjoy your current job

...then you should definitely consider freelancing.

If you're ready to make the transition to freelancing, you may like this bundle I created for people like you who want to start their freelancing careers.

Catch you on Twitter :)