Young Money: Pros And Cons Of Freelancing | CNBC

CNBC

27 Oct 201502:02

Summary

TLDRIn the 'Young Money' episode, the spotlight is on the rising trend of freelancing among Millennials. The video explores the benefits of freelancing, such as flexible work hours, the ability to work in various industries, and the potential for higher earnings. However, it also addresses the downsides, including the lack of job security, the challenge of maintaining work-life balance, and the need to manage personal benefits like healthcare and retirement. The episode advises freelancers to be diligent, find mentors, and have clear goals to succeed in this independent work environment.

Takeaways

🕒 Takeaway 1: Freelancing allows for flexible work hours, enabling individuals to work during their most productive times of the day.
🎨 Takeaway 2: Freelancers have the opportunity to work across various industries, providing a single service to multiple sectors.
🌙 Takeaway 3: The ability to dictate project creativity is a significant advantage of freelancing, giving professionals more control over their work.
🏗️ Takeaway 4: Building a name and gaining experience are essential for freelancers to establish themselves in the market.
💸 Takeaway 5: Freelancers must consider additional costs not covered by full-time employment, such as lunches, gym memberships, and healthcare.
👩‍💼 Takeaway 6: The lack of job security and the need to manage individual benefits can be downsides of freelancing compared to traditional employment.
💼 Takeaway 7: Freelancing requires diligent self-management, including finding mentors and setting clear professional goals.
🧘 Takeaway 8: The flexibility of freelancing can accommodate personal interests, such as attending a midday yoga class.
💡 Takeaway 9: The script emphasizes the importance of understanding the implications of freelancing before making the transition.
📈 Takeaway 10: Preparation and professional guidance are crucial for maintaining work-life balance and financial stability as a freelancer.

Q & A

What is the main topic discussed in the video script?
-The main topic discussed in the video script is the pros and cons of freelancing, particularly for Millennials, and the advice for those considering this career path.
Why is freelancing becoming popular among Millennials?
-Freelancing is becoming popular among Millennials due to its flexibility, the ability to work at preferred hours, and the opportunity to work across different industries.
What are some benefits of freelancing mentioned in the script?
-Some benefits of freelancing mentioned in the script include the ability to set one's own work hours, control over project creativity, and the opportunity to work in various industries.
What are some challenges faced by freelancers according to the script?
-Some challenges faced by freelancers include building a professional name, gaining experience, managing individual expenses such as lunch, gym membership, healthcare, and dealing with the lack of job security.
What advice is given to someone considering freelancing in the script?
-The advice given to someone considering freelancing is to exercise due diligence, find a mentor, and continuously work towards achieving their goals.
What are some of the perks that full-time employees might have that freelancers do not?
-Full-time employees might have perks such as paid lunches, gym memberships, and healthcare coverage, which freelancers need to arrange and pay for themselves.
How can freelancers ensure they don't get off-track professionally or financially?
-Freelancers can ensure they don't get off-track by understanding what's involved in freelancing, preparing for it, and maintaining a work-life balance.
What is the role of a mentor in the context of freelancing as suggested by the script?
-A mentor can provide guidance, share experiences, and help a freelancer navigate the challenges and opportunities in their career.
What is the potential downside of freelancing in terms of income?
-The potential downside of freelancing in terms of income is the lack of a steady paycheck and the need to manage one's finances carefully due to the variable nature of freelance work.
What is the importance of setting work hours when freelancing as mentioned in the script?
-Setting work hours is important for freelancers to maintain productivity and to ensure they are working during the times they feel most creative and productive.
How does the script suggest one can make more money as a freelancer?
-The script suggests that by offering a single service across different industries, a freelancer can potentially increase their income.

Outlines

00:00

😀 The Pros and Cons of Freelancing

The video script discusses the growing popularity of freelancing, especially among Millennials, and explores the benefits and challenges faced by freelancers. It features insights from individuals working in a WeWork office in New York. The benefits highlighted include flexible work hours, the ability to work creatively on various projects across different industries, and the freedom to choose when to work. However, the script also addresses the downsides, such as the need to establish a reputation, the lack of job security, the responsibility to manage one's own benefits like healthcare and retirement, and the effort required to maintain a work-life balance. Advice for aspiring freelancers includes persisting with their endeavors, finding a mentor, and setting clear goals for what they wish to achieve. The video concludes with a call to action for viewers to subscribe to the channel for more financial advice.

Mindmap

Keywords

💡Freelancing

Freelancing refers to the practice of working as a self-employed individual rather than being employed by a company. It is a popular choice for many, especially Millennials, as it offers flexibility and the ability to choose one's projects. In the video, the theme of freelancing is explored, discussing both the benefits and challenges faced by freelancers, such as the ability to set one's own hours and the need to manage various expenses that would typically be covered by an employer.

💡Millennials

Millennials are the demographic cohort following Generation X and preceding Generation Z, typically those born between the early 1980s and the mid-1990s to early 2000s. The video mentions that freelancing is becoming increasingly popular among this age group, highlighting their preference for work arrangements that offer more autonomy and flexibility.

💡WeWork

WeWork is a company that provides shared workspaces for freelancers, startups, and other businesses. In the script, a WeWork office space in New York is visited to discuss the pros and cons of freelancing. It serves as an example of a modern workspace solution that caters to the needs of independent professionals.

💡Productivity

Productivity in the context of the video refers to the efficiency with which freelancers complete their work. It is mentioned that some freelancers may choose to work later in the evening when they feel most productive, emphasizing the personal control over one's work schedule that freelancing allows.

💡Creativity

Creativity is highlighted as a benefit of freelancing, where individuals can dictate the creative direction of their projects without the constraints that might be imposed in a traditional employment setting. This allows for a more personalized and innovative approach to work.

💡Industry

The term 'industry' is used in the video to describe the various sectors in which freelancers can offer their services. Freelancing enables individuals to step into different industries, providing a single service across a broad range of fields.

💡Job Security

Job security refers to the stability and continuity of employment. The video discusses the lack of job security as a downside of freelancing, as opposed to traditional employment where one might have a more predictable and secure income stream.

💡Work-Life Balance

Work-life balance is the equilibrium between an individual's work responsibilities and personal life. The video mentions the challenge of maintaining this balance when freelancing, as the flexible hours can sometimes blur the lines between work and personal time.

💡Healthcare Coverage

Healthcare coverage is the provision of health services and financial protection through insurance or a public health system. The video points out that freelancers must set up and pay for their own healthcare coverage, which is often provided by employers in traditional jobs.

💡Retirement Account

A retirement account is a savings plan for long-term goals, such as retirement. The video script mentions the effort required by freelancers to set up retirement accounts, which contrasts with the employer-sponsored retirement plans often available to full-time employees.

💡Mentor

A mentor is someone who provides guidance and advice to help another person develop professionally. In the video, finding a mentor is suggested as advice for freelancers or those considering freelancing, emphasizing the importance of learning from experienced individuals in the field.

💡Financial Questions

Financial questions pertain to inquiries about managing money, investments, and other economic matters. The video encourages viewers to comment with their financial questions, indicating the channel's focus on providing information to help viewers become more financially savvy.

💡CNBC

CNBC is a leading business and financial news channel. The video is presented by Landon Dowdy from CNBC, and the channel's focus on financial education and news is evident in the content and the call to subscribe for more informative videos.

Highlights

Freelancing is becoming increasingly popular, especially among Millennials.

Freelancers can dictate their own work hours, such as coming in later and working later in the evening.

Freelancing allows for creativity and flexibility in project execution.

Freelancers have the opportunity to work across different industries.

Freelancing requires building a personal brand and gaining experience.

Freelancers face challenges such as managing expenses not covered by full-time employment, like lunch, gym, and healthcare.

Freelancers must handle individual administrative tasks like healthcare and retirement accounts.

Advice for freelancers includes maintaining diligence, finding a mentor, and setting clear goals.

The possibility of earning more money is an attractive aspect of freelancing.

Freelancing offers the flexibility to manage personal time, such as attending a midday yoga class.

Lack of job security and maintaining work-life balance are downsides of freelancing.

Preparing for the challenges of freelancing can help avoid getting off-track professionally or financially.

CNBC's Young Money channel provides financial information to help viewers be smarter with their finances.

The channel encourages viewers to subscribe for more financial insights.

CNBC's original series, Young Money Tech, and other shows like Mad Money are part of the channel's offerings.

Stay updated with the latest financial news from CNBC.