I've worked at home on some level for 19 years. My degree and professional experience is in journalism/public relations, and I do writing, editing and newsletters. Most of my work is for nonprofits. When each of my three children was little, I did just feelance work for a few years. For the past six years, I've had a part-time job and supplemented with some freelance. I had my most lucrative client -- paid me the same monthly and I did whatever it needed -- for 15 years! Unfortunately, financial problems on their end forced them to let me go in January. At the time I had one other freelance job -- the local arts council's quarterlyl newsletter -- and worked 24 hours a week at the local hospice doing communications and fundraising. In February, I switched my jobs and freelance! I now work 25 hours a week doing programs and the newsletter for the arts council and do hospice's newsletter freelance.
Here's my advice to those of you who become independent contractors. Keep track of absolutely every business expense you have, even if it is just a stamp or a ream of paper. Contract work is in a very high tax bracket b/c you owe self-employment tax (roughly twice the FICA you pay as an employee) in addition to your state and federal tax. Also, explore whether you can qualify for a home office b/c that will allow you to write off a lot of your income. And last of all, charge enough! Almost everyone I know charges too little when they first start out.