Freelancing, by the Numbers: 2011
I can unequivocally say that 2011 was the most formidable and fulfilling year of my adult life. It was my first full year of just freelancing, which means it was the first year that I have been wholly in charge of my financial situation. It was also the first year I have kept a detailed budget since I had my first job at 16. It was the year I paid off my credit cards in full. It was the year I didn’t leave Central Europe all summer, and still had a blast. It was the year I stepped foot on the African continent for the first time (and did it cheap as hell). Most importantly, it was the year I broke even, despite working the least and having the most fun of my adult life.
But forget my words, let’s look at the numbers, because graphs are fun!
Here’s a breakdown of my total expenses for 2011, by category:
Fun fact: I spent 1/3 of my food budget on booze. Yay? The basics such as rent, electricity, and food ate up the biggest chunk of my budget, but paying off those credit cards (i.e. the sins of the past) really took a toll. 2012 goal: keep that number under 5%. Oh, and then there’s that pesky student loan…
Now that we’ve got money out, here’s money in:
As you can see, proofreading and translations paid the bills. Considering my savings took a hit, it’s no surprise I barely earned any interest. Other is generally selling stuff, band money (very rare), photography gigs (even more rare) or gifts from family, while writing only earned me a measly 6% of my income. My goal for 2012: 50% income from writing.
Perhaps the hardest part of freelancing was the month-to-month disparities in income. Feast or famine, as they say:
(Net income + savings - net expenses)
All in all, I scraped by. I earned exactly PLN 188.39 (about $50) more than I spent in 2011, and managed to end up with just under PLN 800 (about $230) more in my savings account than I started 2011 with.
The Important Part
Victory? Technically, yes. Really though, this was just a(n educational) start to the freelance lifestyle, and this year I need to earn a whole lot more, spend a bit less (especially on booze, ouch) to make this thing sustainable. There is some hope, though, because here’s another telling figure:
Pages translated or proofread in 2011: 1085.18
Estimated hours worked* in 2011: 813.89
Hours worked in a normal 9-5, 40hrs/wk job (assuming 50 weeks): 2,000
What this means: while the average joe was slaving away in a lightless office for 2,000 hours of 2011, I spent about half of that actually working, while the rest was spent reading, working on my websites, reading more, playing music, biking, enjoying the summer, going to festivals, traveling, and in general feeling better about life. That also means I can still work a bit more this year, earn a better income, while still having more free time than if I were traditionally employed.
Just to bring it all home, this was me working in November, on a sunny beach in Barcelona, sipping cappuccinos and enjoying the 19 degree t-shirt temperatures:
What this untimely means: the “free” in “freelancing” makes it absolutely worth it.
*This was my best guess, judging that it takes an average of 15-30 minutes for me to proofread one page and 40-60 minutes to translate one page, based on the breakdown of translation and proofreading pages… let’s just say there was some complicated math involved, but my best guess is that I spent between 800-1,100 hours working in 2011, whereas the average person would have spent 2,000.
