How the US Recession Affects All Freelancers
It seems everyone’s talking about the recession in the US and how it affects them. Personally, as a freelancer based in the Philippines, the weakening US dollar is surprisingly an important aspect of my career. That’s because a significant part of my earnings is in dollars. An example is my job here, maintaining this blog for b5media.
Would you believe that, a few months ago, one US dollar equaled 50+ Philippine pesos? Nowadays, it’s hovering around 40 pesos to the dollar. That means that in less than a year, my dollar earning power has decreased by one-fifth. It is understandable that freelancers based in the US may have a harder time finding clients, since employers are probably less willing to spend money due to the economic climate. Yet the US dollar is also important to people all over the world.
Many of us have depended on the dollar as a good source of income. Getting paid in dollars used to be a great thing: thanks to my country’s relatively low cost of living, each dollar literally went very far. Now that the dollar is taking a beating however, I may have to consider taking on more local jobs. That’s probably a good thing, as I get to indirectly help my country’s economy more by working for local clients.
In short, it is a testament to the US dollar’s strength as a currency that its value can affect so many people—especially freelancers who need to maximize their earning power. How has the weakening dollar affected you and your freelance career?
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POSTED IN: Freelance Finances
3 opinions for How the US Recession Affects All Freelancers
b5media - Recession? What Recession?
Mar 31, 2008 at 2:50 am
[…] Freelancers worry, too. Rico at Contract Worker examines How the US Recession Affects All Freelancers. […]
Gloria
Mar 31, 2008 at 7:12 am
a LOT. when i started problogging, 1 USD was 56 PHP. 56!!
Karla
Apr 11, 2008 at 11:31 am
I had this small, one-time project with a US client whom I charged in dollars but only billed more than six months later. The dollar had plunged by then and I lost some P2K when I got paid. It has taught me to charge in pesos from then on.
P.S. I just want to say how helpful your blog has been since I started doing freelance work. I got the idea of a formal billing from one of your posts and passed it on to my sister, who’s doing mainly home-based work. Thanks!
Looking forward to more relevant articles!
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