This is the sixth in a series of posts focusing on the Recession in America and the impacts it is having on things other than your 401k and personal finances. Check out the first five posts in this series titled -
Recession in America – What about our pets?
Recession in America – Home Foreclosures
Recession in America – Unexpected Landlords
Recession in America – Abandoned Subdivisions
Recession in America – Trading Stocks not Investing
The previous posts in the Recession in America series focused on many negative things that are occurring as a result of the global economic downturn. Today, I plan on discussing a topic that seems to be another growing trend – this time one that is a positive story! Everyone knows that unemployment is on the rise and job losses are mounting. So how are people getting by without that paycheck they have grown accustomed to? There is a growing number of people turning to freelance and contractual work in an effort to get by while times are tough. People with specific skill sets who are out of work are turning to freelance jobs that pay them a set fee to complete a specific task. That task could be programming a new web application for a company or researching and writing articles – just to name a few.
The Internet has made it very easy for freelance workers to find and bid on jobs. Sites like Elance specialize in connecting freelance professionals with companies and small businesses looking to complete specific jobs in their organization. Freelance workers can specialize in a variety of tasks such as – web development & programming, writing, and even engineering & manufacturing as well as other areas. Companies and small businesses can use these sites to hire freelancers to complete small jobs and projects that will help their businesses grow. I have actually used Elance as a source to hire a ghost writer for one of my niche blogs. The process was very easy and I would recommend it to anyone looking for some help with their site. I have also considered hiring a freelance web developer to build an online application for another site I am looking to launch. Having a resource like Elance is a great way to get this work done!
A very similar growing trend is the increase in contractual jobs that are available. Companies who still have work that needs to be done are hiring contractors to complete various tasks. Instead of hiring a full-time employee to complete this work, they are turning to hiring part-time help to get the job done. The company that I work for is in fact still hiring contractors. By hiring contractors, they don’t have to pay for any health benefits or 401k plans. Instead they pay a flat hourly rate and sign 3 to 6 month contracts for the work to be completed. If times get worse, they have the option to sever ties with a contractor which is much easier and cleaner than cutting full-time help.
If you have recently lost your job and are looking to earn cash to pay your bills, you should seriously consider picking up some freelance jobs or contractual work. Even if you are still looking for full-time work, picking up small jobs and projects can help you network with potential employers. If a company likes your work, they may decide to hire you full time when things turn around. This is also an opportunity to keep your skills fresh and build new references. Picking up freelance jobs in this down economy will give you an advantage over others when employers and companies start to hire again!
My Job Loss Plan
I am still fortunate enough to have my job as my employer has made very few cuts in my department. However, as the economy worsens and companies continue to let go of their employees – you never know if you will be next. That is how I am treating the current economic situation. My wife and I have made several small adjustments to our daily lives to prepare for any unforeseen job loss as I am the only income earner for our family. We have worked to adjust our emergency fund so that is more liquid and available to us if needed. Our monthly budget and spending has also been adjusted to free up more cash.
The other area that we are preparing for is how to bring in cash to pay the bills while unemployed. We have our emergency fund available but don’t want to blow through it and wipe out our savings. Since my background is in IT, I have been researching sites like Elance and others to understand how they work and the available jobs and projects that are posted. I know that there are several projects available that I could pick up if I needed to earn cash in an emergency. While I prefer to focus on creating passive income, I would need to switch my priorities to pay my monthly bills until we have enough positive cash flow from our other passive income ventures.
Are you looking into any freelance work during this recession? Have you considered using sites like Elance to hire freelance work for your website or blog?
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- What does eHow and the Recession Have in Common?
- The One Thing you Should NEVER Outsource
- The Most Important Thing to Know About Working with your Virtual Assistant
- Benefits of Home Based Jobs
- How to Pay for your Virtual Assistant
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Not just in times of prosperity, but always, it’s important to think of oneself as one’s own company. We need to have our own Research and Development division, customer service division, and sales and marketing division, so that we can always be hireable in exchange for our services. It’s great to be proactive versus reactive, and that’s what you’re modeling for all of us!
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