Are Freelance Jobs Jobs Worth it in 2021?


Hey, what’s up all? your get economist out there, i’m Ben, the freelance jobs economist or, i should say, welcome perspective, freelance jobs economist, you might be wondering how much does a full-time freelance jobs economist make in a year? Well, i’m gonna show you in this video in 2021. I only worked freelance jobs economy jobs now by gay economy. I mean you know your smartphone platform technology apps.

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Were you get paid to either give people rides shop, deliver food for people, do random tasks, errands things like that. So obviously, your big names like uber lyft, instacart, doordash, GrubHub, shipped a TaskRabbit, roadie, caviar, deliv rover and probably some other platforms, i’m not really familiar with right. Now i didn’t work for all those platforms, i’m just kind of naming them here, I’ll show you which ones I work for in just a second, so you know people ask me all the time is like. Can you really get by doing just freelance jobs work? Well, the answer is yes, I don’t.

If you can see on the Shelf here, these are all my IT certifications. I worked in the IT industry for about 10 years and in August of 2018 I just I quit my job, not that it was a bad job. In fact, it was a pretty good job really high paying I just kind of got burned out on the lifestyle and everything going into a day, job sitting in an office all day every day I wanted to just be out, be free. Do my own thing so uh, you know I had already been doing uber and lyft part-time and I just decided to make full time go of it. And then I also added in cigar and doordash and Amazon flex and a few other platforms here and there and 20.

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Like I said: 2020, I only did freelance jobs work didn’t punch a time. Clock didn’t have a boss, nothing like that in 2020. So I’m very curious to see how my taxes are gonna work out this year, which we’ll talk about in a minute. So you know you know so, if you’re thinking about going into freelance jobs work, this is probably this would be a good place to start because you want to know.

How much do you make from freelance jobs?

But obviously the first question everybody wants to know is the financial question: is how much can you make or how much do you make? Are the freelance jobs near me pay the same? But in order to really answer that you got ta bear in mind a few things here: what you’re about to see, if what You’re about to see is a sample size of one.

So what what works for me may not work for you, and it’s just also. You have to bear in mind that different cities, different regions, the pay – is different. Everything so in also particular situations like I’m single, not married, don’t have any kids don’t even have any pets. I live in an apartment, not a house very little cost of living. Overall, I don’t have like student loan, debt or credit card debt or anything like that.

The only a couple grand left on my car – that’s about it, but you know if you’re married and have lots of kids and a mortgage and cars and all that and you’re deep and credit card debt or student loan debt. You know, maybe this line of work may not be for you you’re not going to. I will say you weren’t not going to get rich. Nobody ever got rich doing. You work you’re not going to make six figures doing this, probably not even close, but if you want to make more than your typical, obviously gonna make more than minimum wage.

Probably. But if you want to make about as much as your typical w2 office job, then yeah, maybe freelance jobs work is for you just bear in mind that you comes with a lot of its own expenses, which we’ll talk about in just a second, so yeah. So before I show you, the numbers bear in mind that again, like caveat or disclaimer here is that I live in Orlando Florida. Orlando, the cost of living is quite low here, although the problem is also that the wages are also proportionately low here. In fact, I would venture to I’ll go as far as to say that Orlando is the lowest paying major metro market in the entire United States.

You know I mean a lot of Facebook groups with other freelance jobs economists and I see them making way more than what I am but I’d. Imagine that the cost of living where they are. You know New York, Chicago LA San Francisco, any blue states with a really high state income tax on top of your federal income tax. Actually, one of the reasons I moved to Florida is because there’s no federal or no state income tax. Here I should say you know, so they may make a lot more than I do, but they probably their expenses are probably way higher, not than mine are too so um.

You know you’re gonna have to bear that in mind. When you see these numbers all right, so you’re probably like just get the numbers already all right. So let me show you some spreadsheets that I made to keep track of all my all that stuff all right. So this is the annual spreadsheet. You can see it’s color-coded, we got different columns here.

Many different freelance job platforms

Let me, let me bring my myself all right. So columns, B through H, is all the different platforms. I work for Amazon flex door. Instacart, you see column E says inscribe miscellaneous, which is basically referrals in bumps that I got from instacart for, like you, know, customers being no-show the mileage being higher heavy pay things like that, just miscellaneous, not for not for actual labor bumps. Just added on thing.

I prefer to keep them separate, lift Browdy, uber and cash tips. I care, I consider cash tips, part of the job and if anyone from the IRS is watching yeah, so I totally plan on enough on mentioning these. When I file my taxes, column J is gross, which is basically adding all that stuff up column. K is expenses now now these are direct expenses for each week. Basically, it’s just basically two things.

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It’s it’s gas and tolls. I don’t count meals that I eat on the road, while I’m doing the job as a business expense, because you’re gon na have to eat anyway does and also the IRS doesn’t count that as a business expense. And although this has gas, actually, I’m not gon na. Be able to write gas off unless I do like when it comes to doing your vehicle either you can take the federal deduction which is 58 cents per mile, or you can do the actual vehicle operating cost which, which is gas. You know oil changes, any maintenance and any other expenses for your car, like wiper blades and all that, and it’s usually way higher deduction to take the mileage instead of the vehicle operating cost.

But it’s up to you, whichever one you want to take again bear my. I am NOT a tax professional, so talk to a CPA or you know your H & R block, or you know some kind of license: tax preparer, not some random guy on the internet unless you want to maybe get audited or spend time in jail, alright, so Column, L is net, is basically gross minus expenses, and this is like these are more theoretical things really column J. The gross is what I’m really concerned with, but then, and so the net is, is more of a theoretical thing and then comm M is mileage. So yeah all right, so let’s kind of go over this, so you can see all the green is. You know really good weeks for each platform for that week and it it kind of goes by it goes within the column.

So you can see you know almost $ 600 for this week in February for instacart, but it’s green, but also you know a little over 200 on lift is also green. You know just that was the highest week on lift yeah. So, let’s go to the bottom here before we get to the numbers. I just want to show you this pie chart what it does is it. It takes all the earnings that I made across all the platforms and figures out how much each each platform accounted as a percentage of all the total earnings that I made.

So you can see in Sekar alone was 64 percent plus 4 percent as instacart miscellaneous. So that’s well over two-thirds just on instant cart. So and then you can see. Dornish comes in second, but it’s you know a fraction of what I made with instacart and 14 %, and then everything else was under 10 %, each uber lyft, roadie, Amazon, flex and cash tips well, under 10 % of the money that I made doing the most Platforms, if I ever got deactivated from any of those platforms any of these little ones here, I’d be fine, but you know they’re, just kind of nice to have as a backup. Let me come down to this line chart down here, and this is the gross expenses.

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A net for all 53 weeks of the year and as you can see, kind of spikes up and down that’s the thing with freelance jobs work, especially gonna, do it full-time. You know there. There isn’t a whole lot of consistent, there’s an average. Yes, but you know some weeks are better than others. It’s it kind of depends on the beginning of the end of the month, even like the seasons, obviously even the weather on any particular week.

Like you see this, this Peter I’m sorry this dip down here. It says 164 dollars sixty six times, that’s because a hurricane was coming that week and I actually flew up to New York that week. So I only worked one day that week. So I only work one day. I’M 100 sixty-four dollars is really good for one day, but not for a week, and you can see it Peaks back up as soon as I came back, people were buying tons of stuff for the hurricane that was anyway, so you know at your w-2.

If you were, if you were to do the same graph with your w-2 day, job, it would probably just be a flat line, might go up a little if you got a raise, but you know that’s the thing with freelance jobs work is there’s a lot of um. You know it’s not it’s not necessarily steady alright, so you probably want to see get to the. How much did you really make all right so we’ll get to that in a sec, alright, so trying to line this up here? Well, here, let’s go over the averages. That’s the orange row right here on an average week, I averaged i grossed a little over 600 dollars spent a little less than $ 60 and netted about five hundred fifty five dollars and I drove a little over five hundred miles each week.

So it’s like you know a hundred miles a day on a on a five day work week and if here’s the line everybody wants to see. So here’s how much I actually made with aim was on flex $ 1300, nor about less than $ 4,500 instacart between the two there. You can see it’s probably twenty-two twenty three thousand dollars the car lift 49er Brody 18. I only did two roadie things the entire. I didn’t sign up for a roadie until the end the year.

That’s why it’s only $ 18 uber. You know 22 and change, and I made a little less than $ 900 in cash tips for a grand total of a little less than $ 32,000 gross. But again I spent Mike well the direct expenses about $ 3,100, so I netted about 28,000, i netted theoretically $ 28,000, and then I had I drove in a line of work. I drove twenty-seven thousand five hundred twenty-nine point miles and before we get we’ve, let me let me show you another tab on this spreadsheet. So here’s my labor earnings by day come on dude.

Here we go alright, so every single day of every single week is accounted for here. I just kind of want to see you know some days, we’re better than others and how many hours that I work. This also helps to figure out the average earnings by day and how many hours I work by day. You can see that you know Tuesdays and Wednesdays. There’S a lot of blank here.

I usually take Tuesdays and Wednesdays off the case. Lady took Thursday’s off very rarely. I only took I only took two Sundays off the entire year and those were both when I was flying home once for the hurricane and then once for Christmas column, P R is the gross again, and then this is total hours that I worked on for each Week so you can see that you know looks like 35 36 and change is pretty average. Although two weeks right here in the beginning of the year, I was working, you know 50 hours, almost 60 hours. I don’t know when it’s working so much column R is hourly wage before expenses, and then I put my expenses in and we have hourly wage after expenses.

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You can see the beginning of the year here, even though I made quite a bit of money working a lot of hours. I was only averaging fourteen fifteen dollars an hour before expenses and twelve or thirteen after expenses. I think those two weeks right there just kind of skewed the entire year, but you know kind of an average. I would say it’s closer to see anywhere between 16 and 18 before expenses – and you know, 15 is 17 after expenses, and actually, if we come down to the average on the year technically, the average on the year was 16 hours, 64 cents hourly wage before expenses And just about $ 15 after expenses here is a graph of out of total hours worked versus my gross earnings. So you know you can see it’s pretty proportional and down.

Here is another line chart of my hourly wage before next after expenses over the course of the entire year and again is not steady, it is up and down, as you know, so if you want something steady and guaranteed, freelance jobs work may not be for you now. This last tab is my business expenses. These are all things I’m hoping to write off for taxes again, I’m not a tax professional talk to a CPA or licensed tax preparer tax preparer, but this is just gon na give you an idea of expenses that you can write off, but some of these things You have to be proportional to how much you use them in business uses. So your cell phone bill, I mean, obviously your cell phone. Is you do all your work on that, and so let’s say you know, I would venture to guess.

I would use my cell phone at least 75, if not 80 % of the time just for work. The other 20 % is for personal personal use. Internet bill um same thing. You know Internet is more like you know your desktop, your laptop, the Wi-Fi in your house. If you do use that as far as for work, then yeah you can write off whatever proportion of that is tolls and parking.

You know we have a lot of toll roads here in Orlando and I have to take toll roads constantly out of the Sun pass, and so any tolls that I took doing the job. You know giving people who burn lift rides, making instacart doordash deliveries. All those tolls I can write off as business expenses. Here’S some other things you might not be familiar with. You can write off your interest paid on your car loan, any bank fees home office expenses, your health insurance.

I go to the VA, so I don’t really have health insurance, except for the occasional copay for prescriptions business expenses we’ll get that in just second travel expenses. So if you actually, if you traveled home well, you actually took a flight somewhere or you. Even if you went on vacation and you did work while you were there, you could actually do a per diem and write that off as a travel expense, but talk to a CPA or license tax preparer for that, alright, so business expenses, anything that you buy in Order to do the job, that’s business, expense and you’ll be able to write that off so insulated bags. Obviously, for instacart cellphone I had to buy a new cell phone this year, flashlight dash cam accessories books related to freelance jobs. I do those books right there because they’re researching how to do the job, accountants, business expenses.

I mean it’s only a few dollars but still counts. Cellphone K, cellphone lanyard, cellphone power, cable cell phone repairs. I smashed the screen on my phone. Well, not this phone. My other phone, I smashed the screen at like three times so.

Every time I get that repaired, those repairs are gonna, be tax-deductible about a new computer, a bad carriers mic. You know, and some of things on here are just for YouTube, because I do make money doing YouTube. In fact, I didn’t show my YouTube earnings or you know, like Amazon referrals. I didn’t show that because that’s not really into freelance jobs work, and I don’t see any reason why you guys really need to see that so um yeah between all that. So you can see down here, seven or $ 65 57 cents.

As far as I can tell on the business expenses plus everything else on here comes to a total of about. You know a little less than three two hundred dollars in deductible business expense, maybe a little less than that, maybe we’ll just say like three grand or maybe even like twenty seven. Twenty eight hundred dollars yeah. So let’s, let’s go back to the total earnings. So I made you know about thirty, two grand, but again I drove twenty seven thousand five hundred twenty-nine miles: seven thousand five hundred twenty nine miles and disappointment whoops start over here.

Alright, so the fifty eight cents per mile is what you can write off at the federal level, so I’m gonna multiply fifty eight cents times. Twenty seven thousand five hundred twenty nine point nine miles and that’s a little less than $ 16,000 that I can write off as far as mileage plus you know the three thousand dollars on the business expenses, so you know that’s I mean not quite not only. Twenty thousand, but it’s quite a lot, and you know it’s coming down from you know about thirty. Two thousand plus you know sixteen plus you know so. My actual taxable wage between all the freelance jobs jobs is gonna, be, like I don’t know, ten thousand dollars.

How much do you think I’m gonna owe in taxes, probably not a lot if anything at all? So, oh, maybe I’ll do another video in a few months once I actually do mine but um yeah. I know I’m going very long here. Oh, let me show you some other spreadsheets real, quick, while we’re here spreadsheets that I use to keep track of my daily earnings fact. I show these in another video, but it was a long time ago daily earnings and mileage tracker.

So this has all seven days of the week and you know the end of the day I just type in how much I made per each platform. Fact, let’s open one weekly earnings all right, let’s grab one from May here we go so you can see like how much I made for each day and it a verge is out for a trip and my gross. If I let’s see it’s try to find like alright, so here’s like $ 10, I had to pay tolls that day. Okay, here we go here’s gas and then you know there’s a column over here for notes and all that and then it has size on pie. Chart too, so what I’ll do is I’ll?

Take all that the other week and put that in the annual spreadsheet. If you are interested in getting these spreadsheets for yourself, I have I’ve, opened the freelance jobs economy, store ecwid calm, and you can actually get these for yourself. As templates and then you can tweak them and change them as, however, you want so the freelance jobs economy, all these sheets, I just showed you you can get the 2020- 2021, the annual trackers plus the daily earnings tracker, which I just showed you get all those for $ 4.99 and us will have some instacart trackers that I use, which I showed in another video, but I’m not gonna show you right now. Only everything bundle if you want both these together $ 8.

Alright, so I am going very long if you guys watched all the way to the end, you are awesome check out the freelance jobs economy, store, I’m gonna be adding more products there, as as I get to him and yeah.

So let me know if this was helpful if you’re considering going into freelance jobs work full time, part time but again remember this is how much a single guy makes. If you live in it somewhere else, it could be higher or lower, probably higher, because the car we make hardly any money all right. So I’m rambling thanks for watching and I will see you real soon.

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