There is 100% probability your project will end

There is a common definition of risk that says risk is the likelihood and impact of something happening.

Likelihood is the chance that something will happen. For example, there is a 65% chance of rain.

If you have an outdoor wedding planned, the impact is high because if it rains your wedding could be ruined.

An appropriate risk mitigation measure would be to have a backup indoor venue if it rains. This mitigates the impact.

Let's apply this to your 1099 projects.

There is a near 100% certainty your 1099 project will end. This could be due to the formal end of your contract, you quitting, or you getting fired.

The impact is potentially severe as you will lose a huge amount of income.

How do you mitigate this?

• You can constantly be networking and keeping an eye out of your next project.
• You can have extra savings to compensate for your time off.
• You can alternative sources of income (working spouse, a side business, etc.).
• You can get a W2 job.

Most people don't think like this. If you're going to work for yourself as a 1099, you should. It will save you a lot of grief when your project ends.

Want the full playbook? Check out Going 1099.