As others have said, the first year or two is very tough and I nearly went bankrupt. But once you get past that, assuming your work is good, you'll find enough repeat customers to keep you comfortable.
If you can get some kind of cushy project (say some work from your previous employer) to help transition then that's a big win.
I would be earning significantly more in a traditional position, but I live a good life. If I were more business savvy maybe I would be making more than a normal job.
The quality of life is exceptional. Being your own boss, being in control of your daily schedule, being able to nip out any time to solve life stuff, that's all a huge win. I'm 15 years in and very happy, have a strong customer base, and looking at kids soon it will let me be a stay at home dad.
If you're ever over Hawthorn way I'd be happy to have a coffee with you and discuss.