The way people work has changed dramatically over the past few years and now, portfolio careers have become a popular way to earn a decent living, while exploring multiple interest areas and making the most of flexible schedules.
What you’ll learn in this article
- What is a portfolio career?
- How to understand if a portfolio career is for you
- How to start building a portfolio career
- Portfolio career examples (with salaries)
- Pros and cons of a portfolio career
What is a portfolio career?
Gone are the days when everybody would naturally gravitate towards a 9-5 role that brought in a certain wage and allowed for set days off every week. It almost seems unbelievable that this was the standard employment model once upon a time, especially now that portfolio careers and a gig economy have taken over, but what are they? More than just ‘side hustles’, for a start!
A gig economy refers to a system where temporary work positions are more common, so positions will normally last a set amount of time and then end, with no option of progression or extension. Within this framework, portfolio careers have exploded in terms of popularity, as they allow you to have multiple sources of income, with permanent, temporary, freelance and one-off opportunities all coming together to create an income stream.
It’s not as complicated as it might sound. Think of it this way: if you have a part-time permanent role but you want to make more money, you can freelance in your area of expertise on your days off. That’s all it is, but with multiple things all happening at once and bringing in various levels of income.
Portfolio careers have become increasingly popular thanks to the flexibility they offer. People who need work to fit into their life in a more constructive way, such as parents, like the element of control that portfolio careers offer and for this reason, they show no signs of going out of fashion.
Read more: The best weekend jobs for extra cash
How to understand if a portfolio career is for you
Portfolio careers can sound exciting and the answer to a lot of problems, but before you consider walking away from a full-time permanent role, ask yourself a few questions. Remember to answer honestly, as this kind of employment is not for everybody!
Questions to consider include:
- Am I organised enough?
If you are thinking of juggling various roles and income sources, you need to be very organised, or at least strategically minded enough to put a foolproof system in place for staying on track. - Am I a natural multitasker?
If you can only work in a linear way, finishing one task before starting another, a portfolio career might not be for you. You might have clients that work to tight deadlines, and so you might need to be able to change tack quickly, but if you’re not able to, it will become a problem. - Do I need more flexibility?
A portfolio career isn’t a fast-track to working from home in your pyjamas all day (freelancers don’t actually do this!), but if you could use a less structured style of working environment, it could work for you. - Have I got the right equipment?
In most cases, you’ll only need a computer, mobile phone and a reliable internet connection, but these can be expensive if you don’t already have them. If you are planning to see clients at home, you might also need to think about converting a spare room into a working office, which again will cost money and take time. - Will I survive if I have a low-paying month?
This is a key question. If you only get paid from a part-time permanent role, will you be able to cover all your monthly expenses? There are no guarantees with freelancing and even the best professionals suffer bad months, so being able to cover shortfalls is essential. - Do I understand the legal constraints?
A portfolio career can be an excellent source of income, but don’t forget that you will be liable for all taxes outside of any permanent roles. While a payroll team will sort all your wages and deductions for you in a regular role, your freelancing and other endeavours that bring in cash need to be declared separately. Failure to do so can result in hefty fines and serious problems.
If you’ve considered these questions and still think you are potentially cut out for a portfolio career, it’s time to start putting in the groundwork to create one.
Read more: Advice for those thinking about working remotely
How to start building a portfolio career
To successfully transition from full-time employment to a portfolio career, you need to take it step by step. Getting all your ducks in a row is vital, so consider the following:
- Tell your current employer
If you are fortunate enough to be able to take fewer hours in your ongoing role, be sure to tell your employer why. Transparency is key, especially if you are planning to freelance within the same industry, as you’ll need to make sure you are acting non-competitively and not using any in-work contacts for external benefit. - Get some experience
If you want to add something creative to your portfolio career, make sure you gain some meaningful experience before you cut your working hours. Dreaming of being a freelance writer? Make sure you get published before you paint yourself as a professional! Potential clients will want to see examples of your work and published pieces always carry more weight. - Decide on your ratios
Have a plan as to how many hours you want to dedicate to each of your roles. You can always tweak this later, but it’s a good jumping off point and can help you plan your finances more effectively, which leads us to… - Build a contingency fund
Taking fewer guaranteed hours without a little financial buffer is a recipe for disaster. A good rule of thumb is to have three months of rent or mortgage payments in savings, just in case things are slow. - Create your online presence
People need to know who you are, what you’re available for and when, which is why an online presence is every portfolio career worker’s best friend. Making the most of LinkedIn will help you no end, as it’s the members that interact, post engaging news-feed content and keep updating that get more from it than just physical contacts. - Register as self-employed
Even if you keep a permanent job, you will need to register as self-employed alongside it, to declare any and all taxable earnings. The website is straightforward and explains the process simply, but there is also a helpline if you feel overwhelmed. Remember that failure to declare self-employed earnings is a criminal offence.
With all of these steps accounted for, you can start promoting yourself and securing new clients safe in the knowledge that you are complying with the law, not working behind your boss’s back and starting to dictate your own terms.
Read more: How to write a great CV
Portfolio career examples
What does a portfolio career actually look like? Different for everybody! It’s not uncommon for collections of part-time roles to include a couple that are connected by the same industry and then a wild-card interest area pursuit. This is a great way to earn a living and dip your toe into another venture that has always appealed to you, but you’ve never had the time or gumption to try before, although it does make for some potentially unusual-looking careers.
Examples of portfolio careers could look like:
The secret yogi
1. Content manager – 25h/weekly – avg monthly salary £1,875
2. Freelance writer – 10h/weekly – avg monthly salary £575
3. Yoga instructor – 3h/weekly – avg monthly salary £210
The latte art master
1. Sales executive – 20h/weekly – avg monthly salary £1,280
2. Business consultant – 10h/weekly – avg monthly salary £810
3. Barista – 5h/weekly – avg monthly salary £220
The workout fanatic
1. Graphic designer – 25h/weekly – avg monthly salary £1,700
2. Graphic design tutor – 8h/weekly – avg monthly salary £585
3. Personal trainer – 7h/weekly – avg monthly salary £420
The maestro
1. Music teacher – 30h/weekly – avg monthly salary £2,720
2. Private music tutor – 5h/weekly – avg monthly salary £550
3. Session musician – 5h/weekly – avg monthly salary £270
The dog lover
1. Office manager – 15h/weekly – avg monthly salary £1,045
2. Virtual assistant – 10h/weekly – avg monthly salary £720
3. Dog groomer – 10h/weekly – avg monthly salary £375
In essence, it makes perfect sense to keep a permanent role, freelance within a similar sphere and then add in something just for fun. These passion projects are often the least-well-paid elements, but if you see potential for growth and you enjoy the work, it could be something you look to develop. It might even turn into a full-time self-employed opportunity, making your portfolio career a stepping stone to lasting job satisfaction.
Read more: How to become a virtual assistant
Pros and cons of a portfolio career
Portfolio careers probably sound fairly idyllic right now, especially if you are stuck in a full-time role that no longer brings you any flexibility or enjoyment, but as with everything, there are pros and cons. We want to be as honest as possible so you can make an informed decision about your future, so here are some points to bear in mind:
Pros
- You’ll be able to enjoy a lot more flexibility and freedom with a portfolio career than you would in a 9-5. If you can’t get going until noon on one of your self-employed days, you can choose to work later than normal to stay on top of your tasks. This is especially helpful if you are working around young children, who have no concept of a schedule!
- You can finally make time for something that you truly love. If you’ve been wondering how to start making inroads into a different sector without losing the financial security of a paid job, this is absolutely the way to go about it. You can also take your time building up a client base and online following without any sales pressure or deadlines to start with.
- The more jobs you have, the more security. If one of your roles suddenly comes to an end, you’ll have plenty of others to fall back on, with no worries about paying the bills at the end of the month.
- You’ll develop more confidence when approaching potential clients. If you’re always on the lookout for new projects, you’ll soon forget about your initial timidness and you’ll also stop undervaluing yourself. So many freelancers and self-employed people start out by undercharging, for fear of seeming too expensive. You are a professional, offering a one-to-one service. Charge accordingly!
Cons
- Your monthly earnings are not guaranteed. This might not sound like too much of a problem if you can secure a part-time role that brings in enough to live on, but of you are hoping to secure a mortgage in the future, this can be a serious stumbling block.
- The more successful you become, the less free time you are likely to have. It’s easy to get caught up in the moment, taking on any and all work that comes along, but you need to bear in mind that a life-work balance was most likely one of the reasons for pursuing this path in the first place.
- Working for yourself brings nothing in the way of workplace benefits, so wave goodbye to private healthcare, reduced gym memberships and, crucially, pension pots. You’ll need to start investing in a private pension for yourself, just to be secure and you’ll also need a contingency fund for when illness strikes. Self-employed people don’t get sick pay, remember!
- There’s a lot of admin that comes with a portfolio career. From scheduling your own work to invoicing clients and submitting your tax returns, everything falls to you and without the right levels of organisation, it can quickly become a mess.
Could a portfolio career be exactly what you are looking for? Do you have a broad range of experience and interests that could translate into tangible income and the administrative skills to schedule your working life in a whole new way? Start making a list of your potential jobs today and see where it leads you.
You can also try something new and apply for a summer internship this year, and if you think it’s only for students our FAQ about internships will hopefully dissolve that idea.
If you need more inspiration for potential careers would suit you and your portfolio, upload your CV with ValueMyCV tool and learn about optimal career paths.