Now known as “the gig economy,” there were many years where freelancers existed on the outskirts of business owners, somewhere in between small businesses and hobbyists. These are the only types of jobs I’ve ever had, cobbled together to make enough money.
I’ve never worked a full-time job in the traditional sense and, therefore, never had anything resembling “benefits,” namely health insurance and a retirement fund. But these days, I know a lot more people like myself, including writers, photographers, actors, restaurant employees, Lyft drivers, Airbnb hosts, and everything in between.
I am on an advisory board for a brand that services these types of workers and our conversations made me think about what exactly it takes to get by in this modern age of freelance workers.
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Coworking Spaces
This is more common in big cities with small apartments. But no matter what type of work you do, you likely need a place to do it. I previously worked at Switchyards, a startup hub in Atlanta that also offers hot desks that is one of the independently owned workspaces. There are also big name coworking chains like WeWork, Industrious, and Roam. I wrote about these collaborative workspaces for Where.
But I found it to be not quite cost-effective for someone that operates at such the low level as I do, although the fast WiFi and bottomless coffee were certainly perks. I’m not in a field that requires much in-person collaboration, so I mostly joined so that I would have some human contact during the day.
Instead, I now work out of my house, a handful of coffee shops, and my public library, which has free memberships. What I find to be the most important of working from home or a non-traditional office is to have a separate space or at least a separate mindset for work vs. leisure time.
Professional Organizations
No matter what field you are in in the gig economy, it’s important to join professional organizations. In acting, it’s film unions. In writing, it’s professional writers groups. There’s one for just about every industry. They do a number of things, but one of the most important is legal aid and advice.
For example, I recently joined the Author’s Guild, which reviews contracts and offers discounted media liability insurance. The film unions fight for safe on-set workspaces and fair pay. The Freelancer’s Union recently lobbied to pass the “Freelance Isn’t Free” Act in New York City, which fights for timely payment for freelance workers.
There are all sorts of other benefits that they come with, but keep in mind that you may have to meet some requirements for membership.
Networks and Community
Beyond your professional organizations, get connected with your local community of fellow creatives and freelancers outside of your field. This is a great way to collaborate. For example, I might be working on a story for a publication that needs a photographer.
Through these events, I might be able to recommend one to the editors. Every city is different and each has a different niche, but a few I’ve heard of or been to include Travel Massive, Ladies Get Paid, Creative Mornings, and Network Under 40.
Insurance
I should start by saying that I am no sort of expert. I graduated from college in 2010 and was immediately kicked off of my insurance. I had no coverage while traveling through Croatia and Thailand for the summer after being rejected by a number of insurers but later was able to get coverage back through the Affordable Care Act.
I was on my parent’s plan until I turned 26, at which point I purchased subsidized healthcare through the Healthcare Marketplace. (PS. Open enrollment begins November 1!)
These insurance plans were not ideal. I can fully admit that. But they were what I could afford. I’ve since changed insurance providers just about every year and recently had to change doctors because of who was within the network. I don’t think I would have been able to afford my own insurance without this subsidy and I have paid $50-100 more per year every year that my career has continued.
This is one of the only ways to get affordable insurance as a freelancer. However, your professional and other organizations might also have plans. Freelancers Union has their own plans and so do my college alumni organization.
But the problems don’t end here. On these limited insurance plans, you still might have to pay a large amount for specialists or surgeries. I paid $150 per visit for my therapist, something I would consider to be “preventative medicine,” which would be far too expensive for some people.
I don’t have dental insurance, so those visits also cost about $70-200 per visit. I had to have surgery on one of my feet, which was thankfully covered, and a biopsy on a mass, which was not covered. This is why it’s ESSENTIAL to have some sort of bank account or savings to cover life events.
Health savings accounts are made for this. You can also take advantage of doctors that provide discounts if you’re in a certain income bracket. Dental schools offer teeth cleanings for highly discounted rates.
It’s also important to think about disability insurance (not the appropriate name), which sets aside money for when you can’t work due. Looking at friends who have been in car accidents or even had children, I don’t know how I would be able to afford to take time off for a medical situation. I’ve recently enrolled with Trupo, a company that provides a safety net for unforeseen circumstances specifically related to mental health, hospital stays, serious illness, and injuries.
Banking and Finances
As I said before, I am in no way an expert on this subject. Everything I know about operating a business as a freelancer has come from doing it wrong. When I started seriously thinking about my work, I eventually decided to change banks. My previous bank was one that charged monthly fees and was one I didn’t agree with politically.
My new bank reimburses ATM fees, which is helpful when I travel. I wish I had set it up in a way that was easier to separate business vs. personal, but the lines get blurry often. There are many banks that are best for freelancers, which this article outlines, but keep in mind that a physical branch may not be necessary for you.
In addition to the emergency fund I mentioned earlier, the best time to start a retirement fund is now. It took me many years to do this. Coming from Australia where the government requires your company, even part-time, to put money into a fund for you, the world of IRAs and other funds in the United States is like another language.
I set up an account with TD Ameritrade and am slowly but surely adding money to it. Because I’m still young in my career, they recommend an aggressive system of investments.
After years of handing off my taxes to my dad’s accountant, I now do my own taxes through TurboTax. I keep track of all of my receipts and expenses through a spreadsheet, but there are much better methods of bookkeeping.
Only you can decide what is right for you, but I recommend checking in with your expenses every few months so that it’s not overwhelming come tax season. I also found that paying my taxes quarterly has been easier for me than one lump sum. You can set a reminder on your calendar and pay online, skipping all the drama.
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