5 Real-Life Tips To Thrive As A Freelancer After A Layoff
Millions of women in the U.S. are facing a career crisis, as massive layoffs continue across industries. After surviving several in my more than 20 years as a working professional, I’ve learned that survival after a layoff isn’t about talent alone. It’s really about strategy, optimism, resilience, and quick pivots. In the past decade, this meant freelancing, and it’s been my saving grace.
Getting laid off can feel destabilizing, but it can also be the push that forces you to rethink how you earn. Here’s how to get started:
1. Build a survival budget before anything else.
After a layoff and living off of savings for a while, things still got super-tight. It helps to simply accept that you are in a new normal with your finances.
Get clear on your numbers. As a former 9-to-5 employee, I was used to having a predictable income (and lots that fell under the “disposal” category). All of that changed over a short period of time.
Start by recalculating your bare-minimum monthly expenses—rent, utilities, food, transportation, and debt. Then add a buffer to double or triple that amount for a bit of runway while you wait for new client work to come in. And keep in mind: PTO goes out the window if you get sick and can’t complete a project. Unless you have insurance specific to the self-employed or through a spouse, your PTO is literally what you’re able to save in order to cover expenses when you can’t work.
Get rid of any non-essential expenses early, downsize where you can, and practice living on a leaner budget while you’re collecting unemployment, enjoying that severance check, or tapping into other post-layoff funds. This adjustment will help you avoid panic decisions, like underpricing your freelance work just to get paid quickly.
2. Think outside the box about the services you’ll offer.
Losing my job due to a layoff forced me to take a hard look at the type and quality of work I do and what skills I could either expand, upgrade, or abandon altogether. Freelancing gave me the chance to try other career passions and challenge myself to do something new. I increased my knowledge for solving current problems in my industry in ways that went beyond my previous role.
As a trained journalist and editor, I’ve done everything from social media management, book editing, and events hosting to editorial calendar strategy, nonprofit project management, and sales.
When you think of your personal brand and offering services, be sure you aren’t limiting your personal growth, earning potential, or client pool. Create an online presence via your LinkedIn or a two-page website (created via platforms like Squarespace, Canva, or Wix) that reflects your specialties but allows for advancement and a bit of wiggle room in the future.
3. Price for sustainability, not desperation.
After a layoff, it’s tempting to accept any offer just to regain stability, but trust me when I tell you that low rates can trap you in a cycle of overwork and burnout. Think beyond the immediate paycheck since your pricing needs to cover not just your time, but the cost of offering the service, the federal, state, and sometimes local taxes you have to pay, and any related but unpaid hours (like admin work and marketing).
Consider that space between those Net-30 and Net-60 payouts as well, and find ways to almost guarantee steady work, like adding a clause for a mandatory six-month commitment for contracts.
I’ve found the most sustainable success and less burnout in offering rates by the project and then offering hourly availability as an add-on, but do what’s best based on your industry and the nature of what you offer.
4. Treat finding clients like a fun but mandatory daily task.
When you’re starting out, dedicate at least an hour to outreach. This might include emailing businesses, reconnecting with past colleagues over happy hour or coffee, or showcasing your latest work consistently.
I actually landed my first major client for social media management services through someone I used to work with. And while I don’t necessarily like pitching, I’ve found fun ways to get the juices flowing, like timing myself, joining a group to run ideas, or shooting my shot to multiple prospects at a time, with unapologetic (almost delusional) confidence, as if speed dating.
You can also look for freelance gigs via the usual channels (Upwork, LinkedIn, and the like), but upgrade your strategy to include niche platforms like Contra, Toptal, or Dribble. Don’t overlook resources like your local business organizations, Craigslist, or Reddit, or hard-and-scrabble methods like cold-calling, direct sales, or door-knocking. I’ve learned that you can get an opportunity online, but the long-term, repeat clients often continue working with me because they’ve either met me in person or have had personal, relatable exchanges with me that built likability and trust.
Consistency (and not taking yourself so seriously all the time) matters more than perfection here, so small daily efforts can turn into a steady pipeline of prospective clients.
5. Plan for hidden costs and taxes early.
You’ll think getting a $6,000 contract for work is great until your federal taxes suck $3,000 from it, and a small filing mistake means an added $1,000 in penalties. Be prepared to pay quarterly taxes and err on the side of aggressively budgeting for them.
Use a self-employment tax calculator and set aside a percentage of every paid invoice as soon as you get that banking alert. Get referrals for hiring a tax preparer, financial advisor, or accountant who is used to working with freelancers or self-employed entrepreneurs. Consider hidden costs like software subscriptions, equipment upgrades, or internet and workspace bills.
Transitioning from a layoff to freelancing is a great way to build something stable and fulfilling. Approach this with an open mind, strategy, flexibility, and a bit of humor. You’ll soon get that self-made boost in confidence, earning potential, time flexibility, and financial freedom.
