Working Self-Employed Is Much Harder Than You Think
When you have worked as a regular employee for most of your life, self-employment might feel like the ultimate breakthrough. You are your own boss, your working hours are flexible, and you are in control. You also have no co-workers drama to deal with every day. However, transitioning from a regular employment routine to being the boss is not as easy as many people usually expect. Read on to know what to expect because at times working self-employed is much harder than you think.
Why you can still make it work
- You have the freedom to choose your clients
- You choose what jobs to take on
- Your working hours are flexible
- You can work from anywhere.
How to ensure you have financial stability:
- Save when you can
- Develop a contingency plan before getting into self-employment
- Make your new job a side hustle for a while until you are sure
- Get multiple sources of income by increasing your skills and establishing more networks to help you acquire clients from all walks of life. This ensures that when one source of income dries out, you have other sources still running; thus the worry of low and high job season goes away.
How to overcome depression and loneliness:
- You get to have the freedom of working from anywhere, so if the home environment gets into your nerves you can look for human interaction by, for instance, working from coffee cafes
- Rent an office space away from home.
- Join social media groups with other self-employed people
- Attend work-related events to network
- You can join your spouse's insurance plan
- Get an insurance plan from an independent company, for both yourself and your dependents. Although it will cost you several dollars a month, it will be worth it. You don't want to be a victim of bankruptcy due to unexpected medical bills. Being uninsured is risky for you and your newly established business.
- Avoid tax hell by saving at least 25% of your income to cater for tax deductions all year round
- Pay your taxes four times each year quarterly to have less to worries
- Hire an accountant who can guide you on how to remit your taxes.
How to manage your taxes:
- Just like companies are separate entities from their owners, you can make your self-employed business a separate entity from you to ensure you don't feel the pinch when you pay the expenses by yourself.
- Get an expense tracker app
- Budgeting software to help monitor your cash flow
FROM THE EDITOR
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