My experience building a financial life as a freelancer after 8 years of traditional employment.

The hardest adjustment wasn't the irregular income — it was the absence of employer benefits. When you're employed, your employer handles payroll taxes, often contributes to health insurance, and offers access to tax-advantaged retirement accounts with matching.

On my own: I pay both halves of payroll tax (15.3% on net self-employment income), I shop for individual health insurance on the marketplace, and I contribute to a solo 401k (which I had to open and administer myself).

The solo 401k is one of the least-known benefits of self-employment: you can contribute both as 'employee' ($23,000 in 2024) and as 'employer' (25% of net self-employment income), with a combined limit of $66,000. This dramatically exceeds the IRA contribution limit and is the primary retirement savings vehicle for high-earning freelancers.

The health insurance is the hardest part. My monthly premium is $480 for a decent HDHP, which I pair with an HSA. The total out-of-pocket cost of health coverage as a freelancer is the biggest financial adjustment from employment.