I’m considering leaving my salaried role for freelance contracts that pay much higher day rates. I'm not gonna lie its purely a money grab for me, I'm trying to save for a house and need all the cash I can get. If you went freelance full time, did it pay off?

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Freelance can be lucrative. But lots of places have lowered rates, and dry spells between jobs are very common now. It's very competitive out there, with lots of laid off talent competing for fewer opportunities (which allows places to lower rates further).

Also, we learned that banks care as much about steady income as they do about a 20% minimum down payment. They do not really understand freelancers, vastly preferring W2 income streams that have been continuous for at least two years. Now most freelance contracts are done on W2 anyway, but in durations that can make rigid bankers jumpy.

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If your number one goal is house, stay full time. I’m freelance and have made good money the last few years. Much more than I would have made full time. Cannot get a standard bank loan, and the loans that are available to me have higher interest rates. Bank statement loans, asset qualifiers, etc. Basically, you have to balance the extra money you earn freelancing with the extra cost of your loans, if you even qualify. My loan amount also fluctuates based on how recently I’ve had a gig.

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You have to factor in the fact that you'll be paying at least 35% in taxes and you won't have any benefits. Freelance contracts seem great until you actually do the math.

funny

Not a great market for freelance right now. Stay put,

smart

I have freelanced for several years now, and like anything else, it has its pros and cons. I would say to look at how much insurance and everything is going to cost you beforehand. Those healthcare premiums almost make it not worth it sometimes.

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