I've done more contracting than regular employment in my career. I like both for different reasons.
And definitely there's a down side to freelancing (no training, no benefits, less socializing at work, long spells between jobs, payment issues, being away from home, lack of stability, etc.).
But then it has a lot of benefits as well. You are more objective and therefore can be more effective at work. Fewer political battles to fight. Your job is usually very well defined (no elastic job description). The per hour fee is usually higher. You are sometimes regarded as the outside expert, giving you more credibility and a better ability to succeed. On high profile jobs, you will have clear support from stakeholders. You can start a job and finish it - when you are an employee some jobs never end. A sense of independence. A sense of adventure - starting a new contract in a new company and new locale.
As said before, it depends on your personal preference. One could easily write "10 things you should not believe about employment" that lists all the myths about FT employment. E.g. myth #1 "Security".
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