Rest time is a fundamental concept for freelancers. It describes the unpaid periods between finishing one client project and starting the next.
What is Rest time?
Rest time is the period when you are not actively working on billable client projects. It includes time spent searching for new work, administrative tasks, and actual personal downtime. This time is typically unpaid, distinguishing it from paid vacation or holidays.
Why is this important?
Understanding rest time is crucial for accurate financial planning. If you only budget based on your hourly rate during active projects, you'll underestimate your needed income. Factoring in rest time ensures you set sustainable rates and save for inevitable gaps.
How does it work?
In practice, your annual income is earned during your active, billable hours. The rest of the time is rest time. For example, you might only bill 30 hours in a week, with 10 hours spent on prospecting and admin. Those 10 hours are rest time.
Pros and cons
The main advantage is flexibility; you control your schedule. The significant downside is income instability. You must proactively manage cash flow, as rest time means no direct pay. This requires discipline in saving and constant client pipeline management.
Conclusion
Rest time is an unavoidable part of freelancing. By acknowledging and planning for it, you build a more resilient business. Smart freelancers calculate their effective hourly rate by including rest time, leading to better pricing and financial security.
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