How Self-Employed Professionals Can Thrive As The Freelance Revolution Grows

Strategies for maximizing your potential in self-employment

15May

The freelancer revolution is in full swing, as freelance gigs account for 35% of today's economy, with 50% of millennials working these sorts of jobs - and preferring them to traditional 9-to-5 jobs.

These professionals contribute $1.4 trillion to the economy each year, and it is expected that freelance jobs will account for the bulk of the workforce by 2027.

While people enjoy the freedom that comes with working jobs like Uber and Lyft, Amazon Flex, Postmates, and Doordash, in addition to working remotely, these freelance gigs also involve some business savvy.

You're in charge of your day-to-day operations, and the growth of your sole proprietorship. To learn more about handling these gigs with some strategy, consider the tips below.

Handle Your Taxes To Avoid Stress And Mistakes

Being responsible for your own tax information is one of the biggest adjustments that self-employed individuals have to make.

Start by keeping accurate records and making sure that you have the detailed information that will help you file. Take the time to pay estimated taxes each quarter, so that you're not hit all at once by your tax bill.

One of the best things you can do is bring on an accountant that specializes in working with freelancers. They'll help you out with tackling your tax bill, in addition to handling write-offs for things like supplies, software, home office tax credit, health insurance, and other expenses.

Be sure that you sign up for a health insurance plan that covers you and your family so that you can handle your medical care and avoid a tax penalty.

Organize Your Workflow And Treat It Like An Actual Company

It can be tempting to take your foot off the gas when you're your own boss. Since you get to work in sweats or pajamas, it doesn't always feel like work.

However, the more organized you are, the easier it'll be for you to increase your profit margins and attack your goals and objects with some strategy. You'll want to make sure that you classify your business accordingly both for tax purposes and accuracy.

Your personal life and professional life will blend together often when you work for yourself. Take the time to eat well, exercise and center yourself regularly so that you can put in the time and focus that your freelance work requires.

Invest And Diversify For the Long Haul

You'll be a cut above when you do one thing that most freelancers fail to do -- invest in your business interests.

For instance, if you drive for Amazon Flex, why not buy a few shares of Amazon (NASDAQ: AMZN) stock? Likewise, look into shares of stock with your automobile manufacturer, and always seek ownership at different junctures of your work whenever possible.

You will also need to invest for the future, setting aside money for a rainy day and planning for retirement. As a self-employed professional, some worthwhile retirement options include a Roth IRA, Solo 401(k), and SEP IRA.

With apps like Acorns available, you can stash away diversified savings a little at a time by simply using an app.

If you use these tips, you'll be well on your way toward growing your revenue and business sense as a freelance professional. 

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