Why Freelancers Life Is More Difficult Than An Office Worker

Why Freelancers life is more difficult than an office worker - Moniedism

Have you ever heard that "freelancers can't live without income than when they were office workers"? If your monthly income does not change even if you become freelance, you may have to lower your standard of living. Here, we will explain in detail why freelance life tends to be more difficult than office workers.

Freelancers are more strict than office workers! why?

Freelancers have a strong image of being able to work freely without being tied to a specific company, but they are different from office workers in every aspect.

First of all, there is no fixed income every month. If you are an office worker, you can basically receive a fixed salary every month, but in the case of freelancers, the amount is fixed for each case, and the amount of work and income are generally in a proportional relationship.

It would be nice if you could do a lot of work or get a job with a high unit price, but if you do not have a job, it will reduce your income. Also, even if one job is completed, the guarantee for that job will not be transferred until the next month or later.

Unlike ordinary office workers, there are no bonuses, so the purse string tends to be stiff, and you may think that your wallet is tighter than it really is.

However, it is also true that at the discretion of the individual, it is possible to earn much more than the salary of a company employee. It can be said that it is unique to freelance that deposits equivalent to the bonus or more are generated depending on the month.

Freelance who has the same monthly income but is in the red

Not only is the income unstable, but the national health insurance and national pension payments are all self-pay, which is a characteristic of freelancers. 

For example, let's say you have a company employee with the same monthly income of USD 3000 and a freelancer. If you are an office worker, the social insurance premium will be 50-50 with the company, but you will be responsible for all freelance.

In addition, the burden of taxes such as residence tax will be felt large. Immediately after independence, the national health insurance premium will be based on the previous year's income. Even if you have the same income as when you were a company employee, if you pay a large amount of national health insurance premiums and national pension, the final take-back will often be less for freelancers.

Thorough dissection of the difference between office workers and freelancers 

Let's look at the differences other than income.

Working time

In addition to the fact that working hours are basically fixed for office workers, the number of companies that have some restrictions on overtime hours is increasing due to the enforcement of work style reform-related laws. However, there are no restrictions on how freelancers can work.

It is a feature of freelance that you can freely set holidays according to the delivery date of work. Since you can decide the working hours yourself, it will be possible to balance with your private life. On the other hand, if you can't distinguish between on and off and manage yourself, you tend to work long hours, so be careful.

Tax processing

As an office worker, the company will pay and process income tax and residence tax, but you have to do all the freelance yourself. In particular, the annual tax return is a hassle for many freelancers.

After becoming a freelancer, you may be worried that you should have earned as much income as you did when you were an office worker, but for some reason you don't have the money at hand. In other words, if you don't earn more than you were a company employee, you're more likely to have a hard time living if you're a freelancer. If you are aiming for freelance, it is important to have a firm grasp of your household income and expenditure. Renew your household budget, such as trying to keep fixed and low-priority spending down so that you don't hesitate to invest in yourself.

If you want to be freelance, save some money

While you can work freely, freelance can lead to unstable income and increased payments. If you are thinking of becoming a freelancer, it is safer to have enough savings to live for three months without income. Let's form an asset among office workers whose income is stable.

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