While I'm a freelancer by choice (and I absolutely love it), I've also experienced some major hurdles with self-employment. The picture isn't so rosy for everyone. For many people, freelancing is less an opportunity and more a burden.

The freelance economy is complicated, so if you're a part of it, let's break it down.

If you're self-employed one of the most challenging things to establish is how much you expect to be paid for a given task. There are lots of variables to consider but the key is to ensure you charge clients enough so that, even when you're busy, you don't end up in the position where you can't make enough money to get by. Here's what I did to establish my minimum pay-rates.

When you freelance with a client, they typically give you a contract to sign that protects them in case things go south. You might want to have your own contract, too. The US Freelancers Union & NYC startup AND CO have made a tool that helps you create one for free.

It's hard enough to manage your money on a steady, regular income. When your income varies from month to month as someone who's freelancing or self-employed, keeping your finances organised is even more of a pain. From my experience, you need a system. Set it up once, and it protects you forever. Here's the system I use.

Especially when you're just starting out, self-employment can be unsteady. You're not sure when the next client will come or how long the gig will last. For this reason, one financial planner suggests doubling down on your emergency fund.

If you're a freelancer, or just self-employed, you may be tempted to only use client-requested projects in your portfolio. After all, that's work you were paid to do. However, personal projects reflect your own passions and work sensibilities, and may showcase your skills better to potential clients.