How do you make a living as a freelancer?

I'm looking for work again. Details of why aren't important necessarily. I don't really have a lot of them other than that my previous employer felt like we were no longer a good fit. So, now I'm out looking for a new job. One of the things I'm considering after seeing what a good freelance writer can bring in is going that route. There are hassles that come along with it -- no insurance or other benefits, taxes are up to you, etc... . But if you're good at it and well-connected it can be pretty lucrative. And I know that those hassles I mentioned can be easily overcome with a little research and some help from the right professionals.

I thought for a brief moment about freelancing when I was looking for work a couple of years ago, but I didn't have the contacts I needed to do it right. I don't necessarily feel that way anymore. I feel like my two years in marketing have let me meet some great writers and some great people. That would make building a freelance career a little easier. Still it's a little scary when thinking that I wouldn't have a paycheck that's steady and regular. We like budgets in this house, call us crazy. Having months where you make $100 and other months where you bring in $10,000 make budgeting nearly impossible. I know that's something that can be overcome with a little planning and some steady, regular work.

I am taking on some freelance projects now while I continue to look for a new full-time gig. But I'm hoping that some of you might be able to help with tips or advice on how to make a freelance career work. So, if you've gone this route, how did you do it? How do you make it work?