Canada’s meeting place for freelance writers and creators
Established 2010
Canada’s meeting place for freelance writers and creators
Established 2010
Many full-time freelancers wake up one day a few years in and realize that this way of working has become a way of life. Less of a stopgap between jobs and more of a satisfying business that you could see yourself continuing to do—forever?
But with that full-time embrace, and even with the full-time-for-a-while embrace, comes the need for a plan. Just because you desire the freedom of freelancing does not mean that you have to embrace lifelong insecurity. In fact, one of the keys to success in freelancing can be to set yourself regular hours and processes so that it feels like a traditional job, even though you are completely in chare. So, setting up the same perks as traditional jobs just makes sense, even if it’s a bit more work researching the options yourself. Here are a few elements you might consider.
Personal finance experts debate how to save, but even the traditionally employed are encouraged to save a few months of salary in case of a layoff. Guidelines range between three to six months of your salary. I chose $10,000 as my round number to keep in a savings account. But that doesn’t mean it’s untouchable: this fund is meant to be used for emergencies, so that unexpected vet bill or car repair doesn’t send you into a tailspin.
When my emergency fund falls below the balance, I treat it like any other bill that needs to be paid and fill it up as I can. I also have a personal line of credit as a backup as another accessible resource, and a low-interest rate credit card. All of these help me to feel like I have options if something goes wrong. These also don’t need to happen in a day: if you have $1000 to start your emergency fund, do that and build it as you can.
If you’re not traditionally employed, you likely don’t have the supplementary health benefits provided by this arrangement. Let’s fix that, shall we?
Consider a couple of approaches. One is to save a fund similar to your emergency fund, but for health expenses. Figure out how much your prescriptions cost and your other regular medical needs (hello, dental!) and keep that plus in a separate account alongside your emergency fund. Restock as needed.
Another way is to buy into an independent benefits fund. One available in our industry is the Writer’s Coalition program (www.writerscoalition.ca). Members pay premiums like any standard plan in exchange for benefits outlined by tier. Other independent insurance programs exist as well. Some have medical questionnaires you may need to qualify for, and others do not.
Another type of insurance I looked into are critical illness and disability insurance, again weighing the monthly premiums against other options such as my emergency fund. These also have medical questionnaires attached.
I decided against pet insurance for my two cats, so for them I keep a separate fund where I save up their regular costs plus a buffer for emergencies.
Phew, that’s a lot of options! Adulting is hard!
Another far-away-but-not-so-far is retirement. Do freelancers really retire? I aspire to. A freelance friend who just did so is living her best life with activities like travel, theatre, plus a few choice assignments that she really enjoys. I want to be her when I grow up.
To make it happen, I am maxing out my RRSP, and adding to my TFSA. Just like a traditionally employed person. True, freelancers don’t have matching programs, so it takes a bit more savings. But it is possible. And it’s also possible to march yourself into a bank and demand a financial plan, which I did about 10 years ago and recently updated this past year.
Checking in with a financial planner can help you understand needs in retirement that you might not otherwise think about. For example, at this year’s checkup I was reminded that you need to save more for your later years in case you need medical care or assisted living. Another tip was to remember the flexibility of your TFSA as an account that you can liquidate more easily.
My new goal is to save more there rather than just fill up my RRSP.
All of these elements take time and are not as fun as your writing and editing. But once you get your plans in place, the peace of mind is worth it.
Suzanne Bowness is a longtime freelance writer/editor whose book The Feisty Freelancer: A Friendly Guide to Visioning, Planning, and Growing Your Writing Business was published in January 2025 by Dundurn Press.
