This guide will look at the various freelance and contract work types and outline some of the most common expenses and challenges.

The Details of Being a Freelancer

Regardless of whether you’re a contractor or freelancer, you’ll be able to choose how many hours a week you work for each client before agreeing to any work. As such, you can set yourself up to have several different clients. If one client’s business model changes for any reason, and your position is no longer needed, you’ll have the security of your other clients to fall back on.

The Difference Between a Freelancer and a Contractor

Contracting differs from freelancing in that contracting employees are generally hired by one company on an as-needed basis. Contracting has become increasingly popular over the last few decades, especially in the IT and software development industries. These jobs often offer remote work opportunities and excellent flexibility. However, the rate and commitment are usually set for a more extended time than comparable freelance roles.

What Are the Concerns of Freelancing?

Naturally, it’s easy to focus on the freedoms and perks, but we’d be remiss not to point out some negatives to consider. While traditional employment offers benefits, like retirement plans and healthcare coverage, most freelancers and contractors do not receive these perks. Also, freelancers are responsible for their marketing, computer, and home office equipment.

If you don’t get paid, following up with clients and pursuing legal action falls to you. Unless you were contracting with a large company, there’s no HR department to protect you if a manager is unprofessional. Another consideration is that there are often swings in income and business periods, so freelancers need to be more resilient financially. Planning for slower times ensures that you can ride out the waves as a freelancer.

How to Determine Your Freelance Hourly Rate

After weighing your options, if you’ve decided that freelance life is the way to go, it’s time to build your business model and determine how you’re going to get paid. As a freelancer or contractor, it’s up to you to determine your rates and collect payments.

This is enormous freedom, but it can be overwhelming at first. Many freelancers charge an hourly rate for their work, while contractors usually cost a fixed price for tasks and projects. Most of the time, you can negotiate with clients to cater these prices to their budget.

Pricing is a dilemma for all freelancers, though. If your rates are high, you risk being passed over for other freelancers with lower rates. But it would help if you still had enough to make ends meet and appropriate compensation for the time and effort you put into your work. So, where to begin your calculations?

Discover the Market Average

A good starting point is doing a little market research. You can research freelance rates on your own by looking through sites like Upwork and other freelancers websites. Compare their portfolio, skill level, and marketing to yours. If it seems comparable, try and discover their pricing strategies. Do they charge clients an hourly rate, per project, or a combination?

Include Your Business Expenses

As a freelancer, your business expenses will be considerably more than that of a full-time employee. Ensure that you consider the office expenses, such as software costs, office supplies, and rent on your office space. Even if your workspace is at home, at minimum, you’re incurring more heating, cooling, and electricity, which is generally covered by a company in a traditional setting.

You’ll also need to consider expenses, such as funds for retirement, personal health insurance, vacation, and sick days. Don’t be alarmed, though. You generally can make more than a traditional employee once you’re an established freelancer.

Handling Taxes as a Freelancer

Without a doubt, your best option is always going to be consulting an accountant, but we have a few tax tips to get you started. A general rule of thumb for freelancers is setting aside 25-30% of your income for taxes. They’ll be able to help you understand the deductions that you can take, if any, for your home office equipment and business expenses, such as some of the extra utilities.

Don’t Forget Non-Production Expenses

Don’t forget that you need to be compensated for administrative tasks. You’ll be spending time submitting bids, invoicing, and communicating with clients. Beyond individual project expenses, you’ll also have general business upkeep, such as marketing and web management. The rate you charge needs to cover your hourly rate for all of your hours worked—even those hours you’re not actually producing a product.

Once you’ve figured out all of your business expenses, you can divide them by the number of hours you want to work each year. This is the minimum you can make to ensure your costs are covered, and you’re paying yourself a fair yearly salary.

Consider Different Pricing Strategies

To a certain extent, you’ll be at the mercy of your first clients when it comes to payment strategies. As a new freelancer, you might find clients aren’t agreeable to paying you an hourly wage, not knowing how quickly you’ll be able to complete the task. Once you’ve grown your business, you’ll be able to set your boundaries as the demand for your services grows.

Consider hourly or daily rates, a per-project fee, or a value-based pricing structure. In value-based pricing, you charge based on the value it will bring the client. Suppose you’re a web designer building a landing page for a client marketing a new course they’re selling. You’ll charge differently than if you’re making that same client a more informational page that won’t directly generate as much revenue. The downside to that pricing structure is that it requires more work on the front end while you’re negotiating with the client.

Getting Paid as a Freelancer

Once you’ve figured out your pricing model and your hourly rates, the rest is relatively straightforward, although you do need to fine-tune the details beforehand.

Create Your Invoice

The best part of freelancing is getting paid, right? Ensure that your invoice has all of the essential elements on it.

• Client details—your client’s name, address, and order (job) number
• Your name and address
• A unique invoice number
• Invoice date
• Your business address
• Title and details about the job (including dates, if relevant)
• Your payment terms (“Due upon receipt” or “Due within 30 days”)
• Payment options (credit card, cash, PayPal, etc.)

Consider using invoicing software, such as FreshBooks or Invoicely.

Choose Payment Options

Most clients expect you to accept payment electronically to create a professional business. It’s reasonably easy to find a safe method of accepting credit cards. A popular one is Stripe. Depending on the scope of work you do, you may find that clients like the convenience of PayPal. Be aware, though, that both of those options will charge you a fee. Decide ahead of time if you’re going to include those in your initial quote or add them on.

Launch Your Freelance Business

Once you’ve determined your going rate, you’ll be able to launch your freelance business and start working toward the freedom that comes with being your own boss. As your business grows, you’ll be able to give yourself a raise and maybe even a virtual assistant to delegate the invoicing to. That way, you’ll be able to do more of what you love.

The post How Do Freelancers Get Paid? A Guide to Rates, Invoices and More appeared first on Job-Hunt.

It’s important to feel enthusiastic and energized about your current job and your long-term career. Research shows that when you feel happy and energized about your work you are more likely to be productive, creative, and successful. And beyond success on the job, a satisfying work-life has a huge impact on your well-being—improving your attitude, your energy level, and even your health.

Many people—even those who love their remote jobs—find it’s not easy to stay fully engaged when they are by themselves. Maybe they feel isolated, or bored, or they miss the energy that comes from hanging out with the rest of the team.

If you’re not feeling motivated about today’s tasks or your long-term career path, there are countless little things you can do to generate more enthusiasm. But where to begin, or how to keep going?

Whether I’m working with clients or trying to generate more oomph in my own work life, I often refer to an easy little tool I call “The Engagement Triangle.”

As I wrote in my new book, Find Your Happy at Work, you’re more likely to engage and feel happier when you’re aware of three things: your sense of purpose, the people associated with your work, and the best ways to approach your tasks.

The three points of the Triangle—purpose, people, and performance—are keys to your happiness and success on the job. My executive coaching clients often like to “do the Triangle” by asking themselves questions related to each of these three keys.

Engagement Triangle Basics

Purpose

It’s easier to love your job when you’re working for something bigger than just your paycheck.

• Your reason for pursuing this career path is about more than money. Chances are you take pride in your work because of its impact on other people. And your personal career mission may encompass the values that guide your broader life, like kindness and integrity.
• Your work has greater meaning when you understand and support the vision and standards of your organization, your immediate team, or other professional colleagues.
• Although you may not actually know your customers, your pride in providing others with an excellent product or service can make every day feel worthwhile.
• Even a tedious job can feel rewarding if you have a good reason for working so hard, like supporting your family or preparing for the future.

People

Your job can feel more satisfying because of your colleagues, customers, and other people you encounter through work.

• Human beings evolved to need community and enjoy collective activity. When you feel connected with others, your outlook on life is more positive.
• Having friends at work can make you happier and more effective in interacting with everyone. Creating friendships when you work remotely requires you to be proactive. It means you often have to be the one to reach out and focus on your colleagues’ concerns and interests.
• Studies say teams accomplish more when coworkers show each other respect, gratitude, trust, and integrity. You can model these values by showing concern for your teammates.
• If you’re working far away from your colleagues, find other ways to spend time with people. For me, that can mean walking dogs with a friend and, at the same time, chatting about our career challenges.

Performance

You’re more likely to love your job if you invest effort in your tasks, build expertise and interest in your work, and exercise some autonomy.

• Time passes quickly when you have challenging tasks and opportunities to create something. Look for ways to use your strengths, move toward your goals, and innovate as you pursue your projects.
• When work feels dull, you can stimulate fresh energy by learning something new. The sense of achievement that comes from acquiring a different skill or deeper knowledge can spark an upward spiral.
• Workers who decide how to get a job done are happier and more productive than those who always wait for directions. If you’re feeling over-managed, focus on the decisions that you can control, and make repetitive tasks more interesting by finding ways to improve the process.
• You can find considerable satisfaction by consistently doing your job well and meeting your obligations. You’ll enjoy it even more if you keep finding ways to improve your work.

Use the Triangle to Generate Energy and Enthusiasm

Try motivating yourself by considering questions related to each of the three points. A starting point might be to begin every workday by quickly writing answers to these questions:

1. Purpose: What core value will I keep in mind during my work today?
2. People: To whom will I reach out in the course of the day?
3. Performance: What project might bring me an opportunity to learn something new?

About the author…

Beverly E. Jones works with leaders to spark new engagement and productivity in their teams, and she helps coaching clients to grow and thrive in their careers. Her work as an executive coach often focuses on enhancing performance, managing time and energy, improving communication, or navigating transitions. Bev’s new book, Find Your Happy at Work, is a roadmap to helping you find more joy, meaning, and success at work at the same time you motivate your team. Her book on building career resilience, Think Like an Entrepreneur, Act Like a CEO, is available around the world, from Africa to India and Europe, and in languages including Simple Chinese, Arabic, and Vietnamese. Visit her website, Clearways Consulting, or connect with Beverly on LinkedIn, Twitter, Instagram, or Facebook.

The post 3 Keys to Staying Motivated When You Work Alone appeared first on Job-Hunt.

Freelancing is the dream for many people, which makes it feel completely out of reach and impossible at times. But it’s not.

Sure, there’s quite a bit of luck involved in making it as a freelancer. But beyond that, there are a few qualities you should possess to set yourself up for freelance success (and a fulfilling freelance career).

Here are eight qualities you need to succeed as a freelancer:

1. Know Your Strengths and Weaknesses

Being a freelancer requires a pretty high degree of self-awareness. For starters, you have a way less rigid work environment, which makes it all the more important for you to know where you thrive and where you fall short.

Is it way harder for you to get quality work done from the couch or when you’re still in your pajamas? You need to be able to recognize that, and then—even more importantly—do something about it.

Even further, freelancing means you’re a one-person show most of the time. It’s important that you know what areas you excel in and which ones you struggle in so that, if and when you can afford to delegate some tasks, you offload the most draining ones.

2. Be Disciplined

Similarly, nobody is going to be there to force you to crack down and get to work. There’s no boss watching you out of the corner of their eye or colleagues to judge you when you spend an hour online shopping instead of working.

If you’re going to be successful, you need to be a self-starter. Not everybody has that level of discipline to motivate themselves, but it’s an undeniable requirement for people who want to make it as freelancers.

3. Be Persistent

Persistence is always important, but particularly when you’re just getting started and desperately trying to track down work. Seriously, if I could grant you a peek at my sent emails from way back when, you’d laugh. Practically all I did was follow up on pitches and cold emails. I was persistent to the point of being obnoxious.

While I don’t recommend doing that same thing and checking in frantically (ahem, guilty as charged), you need to be dedicated and willing to put in the legwork. A successful freelance career won’t just happen to you—you need to make it happen.

4. Be Resilient

There’s one word you’ll hear more than anything as a freelancer: “no.”

I’ll admit that it’s disheartening, and I’ve indulged in way more sob-induced ice cream binges than I’d care to admit. But rejection is the name of the game, and you’re going to need to let it roll off your back.

Don’t think you’re someone who can develop a thick skin? As brutal as it is to hear, you might not be cut out for a career as a freelancer.

5. Be Organized

Freelancing isn’t all about working on dream-worthy projects in the corner of a coffee shop. You’re responsible for a lot of different tasks.

You need to keep track of your income and expenses. You need to promptly reply back to client emails and stay on top of your deadlines. You need to keep your files sorted and your workload streamlined.

Needless to say, the best freelancers are organized. Not only does this make their own lives easier, but it also ensures that their clients feel confident that they’re working with someone who has their business in order.

6. Be Outgoing

You don’t necessarily need to be outgoing in the traditional sense—you will be spending a lot of time alone, after all. However, you do need to be able to be a little aggressive to land new clients.

If you want to grow your business (and of course, you do) you’re going to have to be comfortable networking and approaching strangers, whether you’re doing it in person or virtually.

7. Be a Skilled Communicator

It’s funny how many people think that freelancing is their excuse to not have to deal with people on a daily basis. Allow me to burst your bubble: being a freelancer involves a lot of communication.

Arguably, you need to be an even better communicator than you need to be in a traditional office environment, since you don’t have the luxury of saying something in passing or yelling over your cubicle wall.

You also need to be willing to have hard conversations—like negotiating a higher rate or breaking up with a client—and handle them tactfully and professionally. There’s no boss or other colleague to take care of that dirty work for you.

8. Be Flexible

Flexibility is a key perk of the freelance life, but it’s also a core demand. You’ll be dealing with an ever-changing workload (not to mention income), and you need to be able to roll with the punches.

Freelancing for a living requires a certain degree of adaptability. If you’re somebody who prefers predictability and stability over anything else, being a freelancer might only increase your stress level.

Set Yourself Up for Success

Does this list capture absolutely everything you need to make it as a freelancer? Definitely not. But it’s certainly a start. Ensuring that you possess (or at least can work to possess) these eight important qualities will get you started on the road to freelance success.

Written by: Kat Boogaard

The post How to Become a Successful Freelancer: 8 Tips appeared first on Job-Hunt.

It’s estimated that over 55 million professionals in the U.S. are freelancers, according to data from FreelancersUnion.org, a number that grows every year.

And that work can take many forms — from being a full-time freelancer to working side gigs and occasional projects.

But if you’re new to freelancing, where should you begin? How do you figure out what you’d be good doing as a freelancer, how do you find paying jobs, and what do you need to know about freelancing and self-employment before you get started?

Let’s dive into each of these topics.

Figuring Out Your Freelance Focus

Perhaps the most obvious step towards freelancing is to figure out what you actually want to do as a freelancer.

Freelance jobs are offered for practically any career field imaginable.

This means there are many options to choose from, but that variety can be overwhelming. Start by asking yourself a few questions to pinpoint where your freelance talents are.

Consider:

• In my current — or recent — work, what tasks or projects have I most enjoyed?
• Where do I feel my strongest skills are?
• Do I have any particular area of expertise?
• What are people always asking for my help with?
• What work do I enjoy most?

When you have identified your interests and strengths, you will be able to focus your efforts, increasing your probability of success and work satisfaction.

The Most Common Freelance Career Fields

Freelancers generally choose a niche area where they are most effective — where they feel confident in their ability to do the work.

The most popular freelance career fields are marketing, web and software development, accounting, teaching and tutoring, and graphic design jobs.

Other common freelance careers include project management, writing, social media, data entry, proofreading, consulting, and research.

Freelance jobs can be full-time or part-time, long-term or short-term, and in all levels, from entry-level to executive. Even if your area of expertise or field of interest isn’t listed here, keep researching to find potential opportunities.

[For more options, read the Freelance and Contractor Fields and Industries article.]

How to Find Paying Freelance Jobs

The Internet has certainly made the dive into freelance work a bit easier for professionals.

Job search websites will typically allow you to narrow your search criteria by selecting “freelance” or “contract” as a job type.

There are also job search sites like FlexJobs.com dedicated to freelancers, where you’ll find many contract listings. It’s extremely important to review each job search site you use before diving in too deeply. If you use a job board, make sure they list quality, legitimate jobs, have a job screening process, and protect you from job scams.

Other options for locating freelance work include:

• Your current and past employers to see if they need any projects completed.
• Contacts in your professional network who know of freelance projects at their companies or through their own contacts.
• Potential new clients who might be a good fit for what you have to offer.

[For more information, read Landing Freelance Jobs: How to Market Yourself.]

Determining Your Freelance Pay Rate

One of the concerns people have when they start freelancing is finding jobs that pay well enough. There are plenty of scary stories floating around the Internet about freelancers who’ve been offered very low rates for too much work.

When you’re first starting out, it can be difficult to determine where to spend your job search efforts and to figure out how much you might get paid.

• One option is to do some math related to your current pay, particularly if you’re going to freelance in the same field as your job.
  • Crunch your current salary’s numbers to figure out much you’re making now by the hour, the project, the month, and the year.
  • Don’t use your take-home salary for your calculations. Be sure to use the “gross” number before all the deductions for taxes and also add the total cost of benefits like insurance which you will be paying yourself as a freelancer.
• Research other freelancers doing the same kind of work to see if you can learn what they charge.
• You can also use sites like Payscale.com and Salary.com to see hourly and yearly salary information for a huge variety of fields.

The resulting numbers won’t be exact, but these numbers will give you a baseline. And, remember, the “market value” of your services may be much higher than your salary, particularly if you have a rare specialty that is in demand. Or, it may be lower if many people with the same skill level are competing with you for the same clients.

If you’re going to start freelancing in a field different than what you’ve been paid to do in the past, look at current job ads in that field. Whether they’re for employee or freelance roles, any jobs that list a salary range or hourly rate will give you some idea of where your own rate might be.

Or, use some of the freelance rate calculators found on the web to determine your rates. YourRate.co is a very simple calculator, while Motivapp.com’s Free Hourly Rate Calculator is much more complex. BeeWits.com Hourly Rate Calculator is somewhere in the middle.

[Read Managing Your Finances as a Freelancer/Contractor for more information.]

The Basics of Self-Employment as a Freelancer

Some people don’t realize this, so in case you didn’t make the connection, being a freelancer is very much the same as being self-employed.

You are your own business, and should think in those terms in order to find success as a freelancer.

Consider some of these basic points as you head down the path towards freelancing:

• Freelancers set their own hours and keep track of their own administrative tasks like expense receipts, appointment scheduling, computer/technology issues, invoicing/billing clients, and paying appropriate employment-related taxes.
• Depending on the nature of their work, freelancers may want to incorporate in order to protect personal assets from liability.
• Freelancers also have to become comfortable marketing themselves and their services to potential clients, and forming and maintaining client relationships.

Finding an accountant you trust can help to answer many of your questions related to becoming a freelancer. And there are many online communities for freelancers in every field: the Freelancers Union and the Freelance Writers Den, for example. Research to find support networks as you venture into this new way of working.

[Read Is Freelancing Your Future Career? for more information about the potential benefits of freelancing.]

Bottom Line

Freelance work can be a freeing, independent way to work if approached the right way. As you prepare to start freelancing, either as a side gig or as a new career entirely, research your particular field to find the best niche resources available to you.

More Information:

• “Freelancing in America, a National Survey of the New Workforce” – the Freelancer Union study
• Landing Freelance Jobs: How to Market Yourself
• Evaluating Freelancing as a Business
• How Contracting Battles Unemployment
• Freelance/Contractor Fields and Industries

About the author…

Brie Weiler Reynolds is the Senior Career Specialist and Career Coach at FlexJobs.com. FlexJobs is the award-winning site for telecommuting and flexible jobs, listing thousands of pre-screened, legitimate, and professional-level work-from-home, flexible schedule, part-time, and freelance jobs. Brie and her colleagues provide career coaching and resume reviews through the FlexJobs Career Coaching program. Find Brie on LinkedIn and follow @briewreynolds on Twitter.
More about this author…

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In 2017, 4.2 million workers in the U.S. with full-time jobs had a second, part-time job, according to the U.S. Bureau of Labor Statistics’ “Multiple jobholders by selected characteristics” report.

For reasons like paying off debt, saving for retirement or college, creating a savings nest egg, funding hobbies and travel, savings for holiday expenses, or even giving to charities, people often seek out supplemental jobs that they can do on the side in addition to their full-time work.

But, while finding options for second jobs isn’t necessarily difficult, there are several issues to consider.

Fitting a Second Job Into Your Life

If you’re already working full-time, the biggest concern is probably how to fit a second job into your already full daily schedule.

To figure out how to fit a second job into your schedule, here are two of the first steps you should take before you start searching for opportunities:

1. Assess your needs and abilities.

If you have additional responsibilities and obligations outside of your full-time job, they’re going to cut into the amount of time you can realistically devote to a second job.

Ask yourself questions like:

• How many hours are you able to devote to a second job?
• What sorts of work would I like to do, or am I able to do on the side?
• How much money am I hoping to bring in with a second job?
• Do I need steady part-time work, or would freelance or occasional projects be an option?

Your answers to these questions will help you focus your search.

2. Talk to other people who work second jobs, and do your research.

People who are already supplementing their incomes with second jobs will be able to give you a realistic idea of what you’re getting yourself into, and they can help you avoid common pitfalls and obstacles. If you personally don’t know anyone who does this, the Internet is awash with (mostly) helpful articles featuring advice from people working two or more jobs.

The good news is that, as flexible and remote job options are growing, it’s also more possible to work a second job from your home, or to find a supplemental income job with a flexible schedule. By targeting remote, telecommuting, and flexible schedule jobs in your search, you’re more likely to find second jobs that fit your needs.

Finding a Freelance Job That Works for You

At FlexJobs, our team regularly analyzes the job listings in our database to find common jobs in different categories.

For supplemental income jobs, FlexJobs researchers have identified several types of jobs that are often available, and that fit a wide variety of career interests and professional backgrounds.

These are the most common and flexible supplemental income jobs:

•   Tutor

Tutoring can be done remotely from home or in person for local organizations. Additionally, your skills can be used to tutor primary or secondary children and college-level students as well. Many organizations seek tutors year-round and for various subjects.

•   Writer

These positions can come in a number of forms including remote, part-time, and freelance. You might create online content for blogs, write news-based articles, or contribute to business and education documents.

•  Consultant

Individuals and businesses hire consultants for a range of projects including design, education, healthcare, business, and IT. Consultants work on a project-to-project basis, and may work on-site or from home.

•  Data Entry Specialist

Data entry jobs are available for people who enjoy working with details and research, and these roles are typically very flexible, allowing people to set their own hours, or work alternative schedules outside the typical 9-5 work day.

•  Brand Ambassador

In this role, outgoing and self-motivated people may find a good supplemental income job. Companies hire brand ambassadors to create buzz surrounding their products and services. These roles are typically done at various on-site locations.

•  Interpreter

Bilingual speakers will find interpretation and translation jobs as excellent options for income supplementation. Remote and flexible, interpreters are hired to provide communication services for a huge variety of industries, including medical/health, business, and finance.

•  Transcriptionist

People with excellent typing skills and a keen attention to detail may be well-suited for transcription jobs. Typically, these jobs are remote positions that require the transcriptionist to listen to audio and video recordings, transcribing what is said.

•  Social Media and Search Engine Evaluator

These part-time, remote positions are for people who have a good amount of experience using social media and searching the internet (not professionally). Social Media and Search Engine Evaluators are hired to help improve the relevancy of search engine results and news feeds for client companies.

•  Customer Service Representative

More companies are hiring people with excellent communication skills for flexible and part-time customer service roles that can be done from home. These typically involve taking in-bound calls, assisting callers with questions and issues, and sometimes the jobs have a sales component.

Bottom Line on Second Jobs

Many of these jobs may be done from home which makes fitting them with a full-time job easier, particularly for parents. However, different employers have different requirements, so use the list above and your answers to the two questions as a starting point. You may find a job that’s not on this list works best for you.

More About Contracting/Freelancing:

• Why Smart Professionals Are Considering Freelancing
• Getting Started in Freelancing/Contracting
• Contractor Fields and Industeelance/Contractor Fields and Industries
• How to Market Your Freelance/Contracting Services
• How Contracting Battles Unemployment
• Contracting and Part-Time IT Jobs

About the author…

Brie Weiler Reynolds is the Senior Career Specialist and Career Coach at FlexJobs.com. FlexJobs is the award-winning site for telecommuting and flexible jobs, listing thousands of pre-screened, legitimate, and professional-level work-from-home, flexible schedule, part-time, and freelance jobs. Brie and her colleagues provide career coaching and resume reviews through the FlexJobs Career Coaching program. Find Brie on LinkedIn and follow @briewreynolds on Twitter.
More about this author…

The post Increase Your Income with a Second Job as a Freelancer appeared first on Job-Hunt.

MANY employers have been forced to shut their doors, hopefully only temporarily.

Working from home is the new normal for many professionals.

Finding a job is not easy, even though some employers are still hiring.

No doubt, you have become discouraged by searching relentlessly for for full-time positions that are very hard to find.

So, perhaps it is time for a change in your job search strategy.

The Contracting or Freelancing Option

Consider directing your energies toward freelancing (also known as “contracting”), where you can find project based, skill-centric, time-specific positions, which are usually paid well and by the hour.

Contract positions are available across industries, fields, experience levels and salary ranges.

While they may not present the ideal situation, these jobs allow you to stay in touch with the professional world, pay the bills, and show prospective employers that you’ve remained active and engaged in the workforce.

They’re not just for lower-level candidates or Millennials, either.

If you’re worried that you will be put in the “permanent freelancer” box, it’s worth noting that while a small percentage of businesses do offer contractors full-time positions, the job market is changing radically, and the way we work is far more diverse than it’s ever been. Contracting may be what we all do in the future.

[MORE: Is Freelancing Your Future Career?]

Starting Your Contracting Work

Finding contract jobs is a bit different than a full-time search. Here are some tips to get you started.

  Create a Contractor Resume  

A solid contractor resume should be shorter and more focused than your standard version, and targeted specifically to the position you’re pursuing. Include a brief personal profile – the equivalent of your elevator pitch – along with a list of skills, certifications, achievements and your career history.

Make sure to sell yourself in both the resume and cover letter. Your approach should be honed in on the value you can bring to the table today, as opposed to what you did in the past.

  Get on the Radar  

Because a lot of contract work is sourced via agencies and websites that focus on non-employee positions, it’s critical to research which ones are appropriate for your resume

Find out which recruiters specialize in filling independent positions in your area of expertise and make contact. Also, tell recruiters you already know that you’re available and looking to work outside the box.

Don’t be afraid to approach hiring managers directly at companies looking to fill contract positions. You can also connect with businesses you’d like to work with and pitch yourself as a cost-effective alternative for short-term projects.

Be sure that your LinkedIn Profile supports your contracting work expertise.

  Search Broadly  

Now, turn to the job boards. Search using terms like “contract,” “contracting,” “temporary,” “remote,” and “freelance.” Many employers don’t realize there can be differences between these descriptions, so their positions could be misidentified in the title.

Read carefully, and apply accordingly.

[MORE: How to Find Part-Time or Project Work.]

  More Pros than Cons  

As an independent contractor, you are not considered an employee. You would likely be hired for a single project and a specific timeframe, and you will most likely be paid by the hour.

You may make more than you would at a comparable full-time position because you’re being hired for expertise exclusive to a project.

But, bear in mind:You are responsible for all of your own expenses which include health insurance, self-employment taxes, and other related expenses. So, the employer saves money while you have added costs.
When you price your work, keep your additional costs in mind.

By accepting contract work, you can reduce gaps in your employment and have the opportunity to network within an organization.

If a full-time position becomes available, being on the inside – even for a short period of time – will give you the chance to make a positive impression.

Another bonus is that each new environment is target-rich. With every assignment you will be able to develop fresh networking contacts and open different doors to potential prospects in your field.

Finally, while many contractors work on-site in non-pandemic time, many work remotely from their homes. Perfect now.

The Bottom Line

Look at taking contract work as a series of small steps forward rather than a big leap into a dream position. Do not pass up short-term opportunities, even if they are not exactly what you are looking for. A contract may be your best option for generating needed income, ending a long-term period of unemployment, or creating a new way to make a living. Each step can lead you down a path toward more opportunities and a better fit in the right spot.

More About Contracting/Freelancing

• Is Freelancing Your Future Career?
• How to Find Part-Time or Project Work
• Landing Freelance Jobs: How to Market Yourself
• Job-Hunt’s free Guide to Freelance and Contract Jobs
• Job-Hunt’s free Guide to the Temporary Work Option

About the author…

Mark Feffer has written, edited, and produced hundreds of articles on careers, personal finance and technology for leading business and career sites. He is currently writing for JobsinME.com, JobsinRI.com, JobsinVT.com and JobsinNH.com, the top local resources for job seekers, employers, and recruiters in New England.

The post Battle Unemployment Through Contracting or Freelancing appeared first on Job-Hunt.

Employers typically view contract work very positively.

Being a freelancer fills “the gap” on your resumes and LinkedIn Profile.

Contract work is also proof that you didn’t just sit around and hit the “Apply” button over and over again.

Instead, you are motivated, interested in working to keep up your skills as well as your bank balance.

Should You Accept a Contract Gig?

When you are unemployed, your focus is often on finding that next role, and you may be afraid to look at contract roles for fear that employers will look at that kind of work as less than desirable.

Contract work has changed dramatically since the early days when the only freelance work you could find was a role in the file room or answering phones.

Working as a contractor/freelancer may be your best option to generate income, and it could turn into your next career.

If you are a college graduate, you may have assumed that you “had it made” when you got your degree.

Sadly, many job seekers with college degrees and even those with advanced degrees, such as an MBA, may find themselves in a slow-to-hire mode because they lack experience.

Often, job seekers find themselves in long-term unemployment after their job is downsized due to merger acquisitions or economic restructuring. Since the target jobs for the individuals with college degrees are typically at a higher pay rate, they may see high school graduates landing new roles faster than they find employment.

Freelancing may be the best option.

Reasons Employers Hire Contract Workers

Today, employers are increasingly turning to freelancers and contractors.

They might hire a part-time/contract employee for any of these reasons:

• To fill the gap when they temporarily have a high volume of additional work to be done (like seasonal package delivery needs).
• To fill the need when it is not a long-term requirement warranting hiring permanent new staff (like working on an IT or construction project, planning a big event, or teaching a college course).
• To temporarily replace an employee on a long-term leave, such as maternity leave or rehabilitation after an accident.
• To have a cost-effective solution when the company is unable to afford a new permanent employee.

Sometimes, employers hire contract workers as they do temporary staff — a try-before-you-buy experience. Both the employer and the contractor have an opportunity to observe and evaluate each other before the relationship becomes “permanent.”

Before you accept a freelance job, knowing the reason the job is short-term is good information for you to have.

You’ll be able to better gauge how long it will last and the probability that it might become permanent.

[MORE: See Freelance/Contractor Fields and Industries for an idea of where opportunities exist most frequently.]

How Contract Work Impacts Your Income and Unemployment Status

You have bills to pay, and contract work can pay those bills. This is an obvious plus even when you are collecting unemployment compensation.

If you collect unemployment, you must report any income you earn from work during this time.

This reporting requirement applies regardless of your situation –

• Whether you work for a single day or several months.
• Whether the work is part-time or full-time.
• Whether you are an employee or working on a contractor basis.

In the USA, the employer will send you (and also the state and federal governments) a 1099 form at the end of the year instead of the usual W-2 form you received from your employer when you had a permanent job.

  Different States = Different Rules: Know YOUR State’s Rules  

Different states have very different rules about how income impacts your unemployment compensation.

If you are currently collecting unemployment compensation, you need to check with your state’s organization governing unemployment (in the USA) to learn how that impacts you. Do this before you accept any contract work so you can understand how it will impact you.

Your state’s unemployment commission will reduce your benefit payment for that week based on the amount you received in compensation for your 1099 work. The reduction may not be dollar for dollar.

• For example, in one state, you can earn up to 125% of your normal benefit amount before your benefit is eliminated.
• On the other hand, in another state, 80% of your freelance earnings are deducted from your unemployment compensation.

This is why it is so important to understand how your local government regulations apply to you and your situation.

  The Timing of Payments Matter  

With regular employment, you generally receive a payment at regular intervals — every week or every other week. Payment for contract work may be held until the job is complete. Depending on the job, you might receive several hundred dollars or many thousands of dollars.

In the case of contract work, you only report the money when you are paid. If you receive partial payment, you report that payment when you receive it, and report the balance when paid.

The timing of the payment you receive may have more impact on your unemployment benefits than how much you receive. Typically, as long as you meet the other requirements for collecting unemployment, payment for 1099 work reduces or eliminates your benefits only for the week you receive payment.

  Retaining Eligibility for Unemployment Compensation  

To be eligible for unemployment benefits, you must continue to actively look for work, and be available for work if you’re offered a suitable job.

If your 1099 position requires you to work particular hours at a particular location, especially if these amount to full-time hours, then you cannot meet the requirement for being available for work.

However, if you can fulfill the duties of the contract job on your own schedule, and you continue to look for full-time work, then you can probably continue to collect your unemployment benefits while completing the contract job.

Be sure to check with your state’s employment office to find out exactly what is required and what is acceptable in your state.

If you are interested in short-term temporary employment (days or a few weeks rather than months), read Job-Hunt’s Guide to the Temporary Work Option.

More Information About Contracting/Freelancing:

• How Contracting Battles Unemployment
• Freelance/Contractor Fields and Industries
• The US Department of Labor’s  Local Help/Unemployment Benefits Finder.

About this author…

Job-Hunt’s Freelancing and Contracting Expert Julie Walraven is a Certified Master Resume Writer and Certified Professional Resume Writer. She is owner of DesignResumes.com and has been helping people with their job searching since 1983. During that timeframe she has helped job seekers find employment as contractors, and she has acted as a contractor herself for many years, so she brings experience and a depth of knowledge to this topic. Follow Julie on Twitter @JulieWalraven.

The post Freelancing: A Good Option When You Are Unemployed? appeared first on Job-Hunt.

A report by the Freelancers Union, “Freelancing in America, a National Survey of the New Workforce,” suggests that we have entered a new era of work, sometimes called “the gig economy.”

Some people who are unemployed view freelance jobs as a way to stay up to date while paying the bills. Others seek the independence of choosing when and where to work, including at home.

The articles I have been writing for Job-Hunt.org address the contracting industry, also known as freelancing. Freelancers work for an employer, but not as a direct employee.

Freelancing and contract work are project-based, independent, exciting, potentially risky, and rich with opportunities.

New World of Work

With a laptop, a cell phone, and Wi-Fi, your office can be anywhere, and you can be just as responsive to your employer as if you were down the hall from your manager.

The Freelancers Union report suggests that “the economic implications of this more flexible workforce are significant.” This means more versatility for businesses too because they have a unique pool of talent that they can access as needed without the obligations and expenses associated with being the direct employer.

As the global markets fluctuate, businesses can be more responsive without a commitment to a permanent expansion of labor.

The Freelancers Union report states that 57.3 million Americans are working as freelancers, representing approximately 38% of the U.S. workforce. It defines freelancers as “individuals who have engaged in supplemental, temporary, or project- or contract-based work in the past 12 months.”

This new style of work crosses many different fields and occupations, from consulting and IT to construction and trucking, including many professions and industries.

Benefits for the Freelancer

Many freelancers can locate jobs online with relative ease. The report states that “31% of freelancers said they can find a gig online in less than 24 hours.” Millennials represent the highest percentage of freelancers, at 38% for those under 35 and 32% for those over 35.

Flexibility in Work Content and Scheduling

Flexibility is huge for those people who prefer the contracting life. Though some roles will require above-average hours during a project, the flexibility of when the work is done is often left up to the freelancer, especially if they are working virtually or remotely.

Working From Home

The concept of working in your pajamas or outside on the deck is made possible by the ever-expanding opportunities provided by technology. The appeal of this flexibility can draw many people to jobs that are less permanent than a previous generation’s concept of work.

Combining Different Contracts to Increase Income

Some contract workers balance another job or a business with the contract work, which gives them flexibility to get that work done. Many workers will work very hard to reach their goals and create financial freedom for themselves or their families.

Avoiding Organizational Tension

Without the office environment, some contract workers feel less stress because they only have to produce the work needed without office politics concerns or potential workplace interruptions.

Paying Bills While Searching for a “Real” Job

Sometimes, freelancing is the best available option for someone who is unemployed or reentering the job market, providing an opportunity to build skills and networks while paying bills.

Other benefits certainly exist, as, of course, do disadvantages.

Benefits for Employers

A contract can benefit an employer in many different ways.

Project-Based Work

The project has a beginning and an end, which means employers can hire highly skilled contractors for a limited period. Many IT companies will contract for project-based skills or expertise that they can’t find locally; this enables them to get the project done with top talent.

Temporary High-Volume Needs

Work requirements can be met without the need to increase permanent staff. For instance, insurance companies can hire contractors to manage high volumes of claims with the intent of possibly retaining some of the workforce permanently for excellent performance.

The “Temp-to-Perm” Situation

The initial project can be a tryout for both sides. Does the freelancer like the organization, and does the organization feel the freelancer is a good fit for a “real” job? Time and experience for both determine the outcome.

Retailers and shipping companies add massive numbers of “seasonal workers” during the holidays when work levels spike dramatically.

Hospitals contract with traveling nurses and locum tenens (temporary) physicians to cover very busy times, such as high maternity levels, illness outbreaks, or simply high-volume periods.

Recently, I worked with a client who will be the owner’s representative on a $25 million school referendum project. He was selected because of his construction management expertise to represent the owner—the school district—during this upcoming project.

I have another client who does 35 days on and 35 days off as a security director for an oil company doing exploratory work in Africa.

The Bottom Line

Whether or not you are a good fit for contract work is a decision best made after considering the options and consequences. The increase of freedom is balanced with uncertainty in income. For some people, economic uncertainty is so difficult that they need the security of a “real” job. For those people who understand the risk and can plan ahead, the freelance world of work offers endless opportunities for personal fulfillment and work on their own terms.

About this author…

Job-Hunt’s Freelancing and Contracting Expert Julie Walraven is a Certified Master Resume Writer and Certified Professional Resume Writer. She is owner of DesignResumes.com and has been helping people with their job searching since 1983. During that time frame, she has helped job seekers find employment as contractors, and she has acted as a contractor herself for many years, so she brings experience and a depth of knowledge to this topic. Follow Julie on Twitter @JulieWalraven.

The post Time for a Career Change to Freelancing? appeared first on Job-Hunt.

That requires clients who will pay you for your services.

To understand how to gain clients, you need the answers to these questions:

What kind of marketing strategies do you use for this type of work?

How does this differ from looking for a long-term or permanent job?

What marketing tools do you use?

Where do you look?

Marketing Your Value Effectively

Marketing yourself as a freelancer/contractor requires effective use of these five basic elements of personal marketing:

1. Start with LinkedIn

In late 2018, LinkedIn is the most visible of the professional social networks with 590 million users, located in 200 countries. Many studies have shown that we all use LinkedIn to learn more about people (whom we might hire, do business with, or date).

Not having a good presence inside LinkedIn is a handicap today for most professionals today, particularly for those who are marketing their services.

Make sure that you are fully optimizing your Profile for credibility and appearance in search results:

• Ensure your LinkedIn Profile is complete, value-filled, and consistently focused on your relevant experience and the quality of the work you want to do as a contractor. And, don’t skip the headshot!
• Your entire Profile, starting with your branded headline, should make your expertise clear.
• The descriptions of your current and past jobs in the Experience section should include quantified accomplishments that demonstrate the quality of your work.
• The selection in the Skills and Endorsements section should support your professional expertise rather than irrelevant skills from your past.
• Tell the story of your relevant services and successes in your Profile’s Summary section, highlighting your expertise as a contractor.
• Be sure that you have Recommendations from clients and other professionals.
• Know and consistently use your most important and relevant keywords (LinkedIn SEO).

Be active and visible in LinkedIn, sharing relevant updates on a daily basis, interacting with other members, and presenting a consistent and professional image. Maintain your professional image in your writing, comments, and sharing.

LinkedIn also has a service, ProFinder, which may offer visibility to people looking for someone like you. After you have submitted 10 proposals to potential clients (successfully or not), you must purchase a Premium membership to continue your participation as a provider. That cost is $59.99/month.

[More: LinkedIn for Job Search articles offer solid advice for optimizing your headline, summary, and other sections of your profile.]

2. Enhance and Refine Your Resume

Rather than positioning yourself as a contractor, position yourself as an expert in the field you have chosen.

In your field, your resume is your marketing brochure.

Your resume should resonate with accomplishments that fit the field you are targeting rather than emphasizing only the contracting aspect of the work you have done.

You can list contracts in a career chronology section of the resume so that the potential hiring manager can verify your employment but in the resume content, emphasize your success stories. Determine a path for your contracting because like any other kind of job search, those who will land new roles have differentiated themselves and brought forward their talents.

A client had extensive experience in the banking field but decided to use those financial skills in a new direction. He had already worked in contract roles within the nuclear power industry. This is the beginning section of his resume:

Business professional, dedicated to client service with extensive experience in inventory control, contract performance, fiscal management, banking, and payroll operations.

We were selling the transferable skills from the financial field to meet the needs of the administrative side of nuclear power plant operations.

This resume continued with bullets from early roles in contracting with a demonstration of how he had achieved the goals of the prior companies. His financial expertise combined with his ability to rapidly assimilate and use new software applications effectively made his transition into running payroll and accounting functions in this new industry a good fit.

3. Energize Your Network

Your network is key in every kind of a job search. Contract work is no different especially if you are planning to make a career out of contract work.

Build a network of people who are in the know about the type of roles you are seeking. These can be people you have worked with in your contracting jobs — both fellow contractors (if any) and the clients — plus people you meet elsewhere.

Social media can be an essential tool as you explore opportunities. Branding yourself as an expert in your field and sharing information that positions you as knowledgeable in your target contract field will help you grow your network.

[More: 10-Step Personal Branding Worksheet and Personal Branding for Job Search.]

All networking benefits by relationship building but when you are seeking new opportunities, connecting with people already established in that field may be the source of your next role.

4. Use “Content Marketing” to Draw in Your Audience

According to Wikipedia “Content marketing” is any marketing that involves the creation and sharing of content published on the Internet to promote your services (or any product or business).

For individuals, content marketing is publishing information (a.k.a. “content”) which demonstrates that you are knowledgeable about a specific area.

Whether you are using LinkedIn’s new Pulse feature (the internal blog option in LinkedIn) or you set up your own website and blog, content marketing or blogging is an excellent way to position yourself as an expert in your field.

Not everyone is comfortable writing, but — if you are and if you are also willing to learn effective ways of writing compelling content that relates to your field — you could find yourself being sought out for that expertise.

The key to content marketing is to write about topics people want to read and draw readers to the topic with captivating headlines and interesting content.

5. Hone Your Skills

While promotion is the key to finding new roles as a contractor, you need to be continually seeking out opportunities to enhance your skill sets. An employer is not likely to invest in training you, today, even if you have a “permanent” job. Now staying up-to-date is your personal responsibility.

Many fields have certification opportunities. Research the most valuable certifications for your field and continually strive to earn new certifications that make you more marketable.

I remember a recruiter for the construction industry telling me that if he found people with the Certified Safety Professional credential, he had high-paying work for them throughout the country.

Do not ignore the value of staying on the top of your industry!

Bottom Line on Marketing Yourself as an Independent Contractor

Marketing yourself for contract work is not too different from a job search. Be aware that you will be in a continuous search to assure that your income remains steady. A single contract can last weeks, months, or even years depending on the project, the employer, and the field. But, you do need to be continually ready and marketing for the next opportunity.

More About Contracting/Freelancing:

• Why Smart Professionals Are Considering Freelancing
• Getting Started in Freelancing/Contracting
• Top 10 Contractor Fields
• How to Market Your Freelance/Contracting Services
• How Contracting Battles Unemployment

About this author…

Job-Hunt’s Freelancing and Contracting Expert Julie Walraven is a Certified Master Resume Writer and Certified Professional Resume Writer. She is owner of DesignResumes.com and has been helping people with their job searching since 1983. During that timeframe she has helped job seekers find employment as contractors, and she has acted as a contractor herself for many years, so she brings experience and a depth of knowledge to this topic. Follow Julie on Twitter @JulieWalraven.

The post Landing Freelance Jobs: How to Market Yourself appeared first on Job-Hunt.

Then, you will start to doubt yourself or why you are even trying to launch a freelance or contract business.

Income Reality for Freelancers

Even if you have been freelancing for years, you will have those moments when the leads stop or the phone stops ringing. Perhaps you will feel a little crazy as you start to doubt if you are cut out for contract work.

How do I know? After more than 30 years as an entrepreneur, freelancer, and contract worker, I understand! I have lived it all.

Income ebbs and flows. You can do everything right from the marketing perspective, and, yet, the revenue faucet will suddenly turn off. Just as suddenly though, it tends to turn on again.

For some people, the stress of an unstable income is too much, and they rejoin the workforce as an employee. And that’s the right choice for them.

Perhaps though, you will be like me, and find freelancing is in your blood. You thrive working as an independent contractor. However, it does take some fiscal planning to face those income ebbs and flows.

Get Professional Advice

It’s a very good idea to talk with an accountant, like a CPA (Certified Public Accountant) as you establish your business, and accountants can be extremely helpful later, too. Depending on your business, you may need an attorney, too.

Accountants can guide you through some of the financial (tax) processes, in case you need to collect sales tax (not every business does), and help you establish a good understanding and process for your financial record keeping.

Hiring a good accountant is money very well spent. Do NOT avoid it! Being a freelancer is totally different from being an employee, and you must handle the finances correctly or pay a very large penalty.

If you think you might want to set up a corporation, typically a “subchapter S” corporation, talk with an attorney. Being incorporated has benefits as well as costs. Make an informed decision about incorporating, becoming an LLC, DBA, or some other legal entity by talking with a local attorney who helps small businesses where you will be doing your business.

Separate Business and Personal

Mixing personal and business expenses will make life much more complicated for you. So, don’t do it.

• Separate your personal finances from your business finances

  Have a credit card (or more than one) that you use ONLY for your business. If your business is a LLC or some other legal entity, also open separate checking and savings accounts for your business.

• Keep track of your business travel expenses

  Note the mileage, tolls, etc. when you are traveling for your business. You probably don’t need a different car for your business, but you do need to keep business and personal use separate, and document your business use.

• Keep your office expenses separate

  Note the expenses related specifically to your business like a business computer, business phone, business cards, etc.

• Keep track of all your other business expenses

  Other expenses like meals, chamber of commerce membership, professional association memberships and meetings, business cards, business website, etc.also need to be tracked.

The good news — you can “write off” most of your business expenses (deduct them from your revenue) in accordance with local laws and regulations. You will typically pay taxes only on the “net revenue.”

The bad news — you need to keep good records of those expenses as well as generating enough revenue to cover them.

Tax authorities can become very cranky if you deduct something that isn’t really a business expense or do something else that doesn’t meet the local requirements. So, pay attention, keep good records, and get professional advice.

How to Plan Your Finances in the Freelancing World

You have many tools available and many considerations.

Getting paid by your clients is much different from being a salaried employee, and you’ll need to make some adjustments. To learn more, read How Do Freelancers Get Paid? A Guide to Rates, Invoices and More.

In general (rules differ by government entity where you live), you will pay taxes on your “net before-tax revenue.” You get to your “net revenue” by subtracting the cost of doing business (your business expenses) from the revenue your business generates.

So, tracking your expenses and revenue is very important for your business. You don’t want to operate “at a loss” very often to run a profitable business, and a positive net income from your business will be the “salary” you pay yourself.

Develop Your Budget

Many people do not use a budget at all. They fly totally by the seat of their pants. Dangerous!

When you are an employee of a company that does not use a budget, the company has a hard time staying fiscally solvent. If you are a freelancer or contract employee, trying to operate without a budget creates chaos.

A budget is a plan for spending money, based on your business’s expenses and revenue. You must cover the “cost of goods sold” so that you don’t lose money on every sale (or if you do lose on every sale, you have a good plan for recovery).

Ideally, you have more revenue than expenses every month, hopefully generating a profit for you. SCORE (Service Corps of Retired Executives), working with the SBA, offers an Excel spreadsheet budget template to help you get started managing your businss budget.

I use multiple tools for budgeting. My main tool is an extensive spreadsheet that I started in 1996 and add a new page each month.

This tool continues to expand. It records revenue and liabilities, so I can tell at a glance how much debt we have and strategize plans to eliminate debt while projecting expenses and revenue.

Learn to Understand Financial Statements

In addition to the spreadsheet, I also use QuickBooks to record each transaction, and generate accurate financial reports for the business.

I also created a QuickBooks “company” for our personal side, too. This enables me to analyze our personal expense categories from multiple perspectives. This tells me if groceries are more this month than last, and how much to plan for utilities.

By developing systems for tracking rather than flying by the seat of your pants, you eliminate stress, and can focus on marketing and on completing your work.

Project Your Expenses

My budgets work very well on a month-to-month basis, but there are personal and business expenses that are due periodically.

By knowing when these expenses are due, you can schedule them into the correct monthly budget and not get blindsided.

I use QuickBooks for this, and add a note for expenses that only come up once a year such as virus protection programs or other infrequent expenses as well as the quarterly tax payments.

Save Each Month to Pay Your Taxes

Since you know your income is not consistent, develop your financial plan, and keep saving on a monthly basis. If you set aside money for taxes and other expenses, you will be ready when the bills arrive.

Taxes will not be withheld from your income because your clients are not paying you as an employee. So, you will be responsible for paying those taxes, and you need to have that money available. The IRS has guidance to help you determine your independent contractor status that is especially helpful when you are starting up.

As a contractor, you mostly likely will need to pay estimated taxes. Work closely with an accountant to determine what you need to estimate, and set up a plan to both save for the taxes and pay them on time.

Pay Your Bills on Time

Your credit rating is critical as a freelancer! You want to save, budget, monitor your budget, and pay everything on time.

Paying on time will enable you to keep your credit rating high. A high credit rating means that, if you have an emergency that goes beyond your savings, you should be able to get a loan or access a line of credit.

Establish a Reserve Savings Account

When you are just starting out, you should enter the contract world with a reserve savings account for the famine times.

Financial experts recommend 3 to 6 months of income set aside in general. This is very difficult for most people, but even having an emergency fund of at least $1000 will help you.

Bottom Line

The better you manage your money as a contractor, the more peaceful you will feel and the better you will be able to continue in the field of freelancing or contracting.

Laws and customs differ by country, state, and city, so take this advice as a starting point and food for thought — general guidance, not legal advice. Then, check with your local government, legal, and accounting professionals for the details on what is legal, acceptable, and best practice where you are.

More About Contracting/Freelancing:

• Freelance/Contractor Fields and Industries
• How to Market Your Freelance/Contracting Services
• Contracting and Part-Time IT Jobs

About this author…

Job-Hunt’s Freelancing and Contracting Expert Julie Walraven is a Certified Master Resume Writer and Certified Professional Resume Writer. She is owner of DesignResumes.com and has been helping people with their job searching since 1983. During that timeframe she has helped job seekers find employment as contractors, and she has acted as a contractor herself for many years, so she brings experience and a depth of knowledge to this topic. Follow Julie on Twitter @JulieWalraven.

The post Managing Your Finances When You Freelance or Contract appeared first on Job-Hunt.