According to economists, we live in a gig economy where many workers aren’t salaried employees but work hour to hour or job to job. A slew of factors have led us to this, not least of which is the collapse of the global economy in 2008, but now that we’re here, it’s essential to ask: is it better to be a freelancer or a salaried employee?

The answer isn’t simple, and today, we’re here to walk you through it.

What Are The Benefits Of Freelancing Work? 

Con: Inconsistent Income

When you’re a freelancer, you’re very much at the whim of the market. Uber drivers only work as much as people want to travel, bloggers only blog as much as companies want them to, and photographers only photograph if there’s a demand for it. Worse, demand for your talents can swing wildly from month to month or even week to week. To go back to the Uber driver example, the number of rides you’re hired for may spike during tourist season, then lapse low again the month after.

Being a freelancer is much like being a boat bobbing atop a vast and uncaring sea that may surge or dip without you understanding why or being able to predict how. You can even keel a bit by saving money and cultivating a cohort of loyal customers, but it’s not an endeavor for the faint of heart.

Pro: Flexible Hours

This is by far the most significant upside to freelancing. Instead of working a set nine-to-five schedule, you have the flexibility to decide when you work and how much you work. For those who can’t work regular work hours, like moms, this flexibility can be an invaluable way to make money that would otherwise be closed to them.

Unfortunately, almost all of the above is true if you aren’t in a financially difficult position. For those who don’t have the money, the freedom to make your hours becomes a desperate endeavor to squeeze as much water from a stone as possible and work as many gigs as you can.

Con: No Health Insurance

With the vast majority of bankruptcies stemming from healthcare costs, it’s no wonder that health insurance is an unimaginably important part of employment. Before Obamacare, you had essentially no viable way of obtaining health insurance. Freelancers were mainly on their own and just had to pray they would stay healthy to avoid bankrupting themselves.

But while Obamacare has abrogated the risk to an extent, you’re still highly unlikely to end up with a good plan with a low premium and deductible. It’s one of the significant downsides of freelancing, and if you have any long-term health issues, you should seriously think twice about whether freelancing is the right decision for you.

What Should You Do If You Face A Freelance Emergency?

With inconsistent income and no health insurance, freelancing can be risky. When financial emergencies appear, you'll need financial resilience to make ends meet. Let's discuss two financial solutions you can consider when money is tight. 

Turn To Savings

If you can save while freelancing, do so as soon as possible. Setting aside small amounts from your freelance income can help you tackle a financial emergency when money is short. While this may be difficult initially, you can still create a practical budget and set aside a small portion of your residual income for savings.  

By committing to this action early in your freelancing career, you can face a financial emergency with confidence. 

Consider A Title Loan

Emergencies often arrive without notice, and if you need help paying for an urgent expense, a fast title loan from Tennessee Title Loans, Inc. is a convenient option. Here's how our easy title loan process works: 

1. Start the title loan process by completing our online inquiry form on our homepage.
2. Our friendly loan representative will contact you to discuss the requirements for a Tennessee title loan. 
3. If you decide a title loan is right for you, bring your required items to the meeting with our representative.
4. After the loan agent reviews your documents and inspects your vehicle, they'll determine your loan amount. This amount is based on your vehicle's make, model, and condition. 
5. If approved, you may receive up to $2,500 in emergency cash the same day you apply! 

Unexpected emergencies can cause stress and concern. You may wonder if choosing a freelance job was right for you. However, we at Tennessee Title Loans, Inc. want to offer you emergency assistance in times of need, and our title loans are one quick option to consider.  

Prepare For Emergencies As A Freelancer

Whether you’re a freelancer or a salaried employee, sometimes our average income isn’t enough to deal with an emergency. That’s where title loans like those we offer here at Tennessee Title Loans, Inc. come into the equation. Our title loans are fast and straightforward to apply for and can get you the cash you need the same day.

You can start by filling out the online application form at the top of the page.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.