Being your own boss can seem like the perfect job. However, being able to work when you want, however you want and whenever you want comes at a price.
1. Pros and Cons of Self-Employment
The pros of self-employment are more than obvious.
The first advantage is that you can set your own schedule. If you need time off, you can simply take it. If working 9 to 5 isn’t your thing, working hours are not setting stone. You can work when your kids are away or asleep. However, you should keep in mind that being an entrepreneur comes with working long hours.
The second advantage is that you can work from whenever you want. That means you get to be anywhere in the planet and be able to do your job as long as you have your laptop and access to internet. By choosing to work from home, you get to save time and money on daily commutes. Not to mention you will save a ton of time on pointless meetings and chatter and we know that time is money.
A home office can also make you eligible for tax deductions, so it’s a win-win on several fronts. Self-employed are eligible to tax-deductible expenses that aren’t available to employees. Some examples are business-related equipment, meals and business trips. Although working from home will likely increase your monthly expenses as your United Illuminating utility bill will undoubtedly go up as you consume more electricity, you will also be able to deduct a portion of such household expenses. All you have to do is dedicate a special space for your home office and make sure there’s a clear boundary between your work and personal areas.
However, all these advantages come at a price. You will be eligible to various tax deductions, but you will also be paying additional tax compared to employees. The payroll tax is split evenly between employees and employers, so that means the self-employed have to cover the other half. Employees also have another perk and that is health-insurance that can be pretty costly for the self-employed. They also get paid holidays, vacation and sick days, so being self-employed automatically gets rid of all those benefits. It is also less secure as pay is not guaranteed and it can be irregular. For this reason, you can actually end up working more than 9 to 5 if you are self-employed.
2. Self-Employment Tricks and Tips
To begin with, being your boss means being the one in charge to keep yourself productive. You need to know what you are trying to achieve and make both short-term and long-term goals. Once you have those goals figured out, you need to make a plan and stick to it.
Plan ahead but be prepared to adjust
Having a plan will keep you focused but don’t micro-manage yourself to just focus on doing a checklist. You need to review your plan from time to time, measure your progress and make changes as needed.
Don’t get attached to outcomes
It is unavoidable for things to get off- course and your ability to adjust will be better if you learn not to get attached to your expectations. Nurture a neutral mind to deal with such situations and see them as opportunities in disguise to do even better.
Eat the elephant one bite at a time
Break down ambitious goals into smaller ones to avoid getting discouraged. The tougher the task, the smaller the bits.
Every entrepreneur needs to be ready to put in the work. However, to keep your motivation and energy at a high level, you need to give yourself a pat on the back for a job well done.
Takeaway – Working at home in your pajamas at the comfort of your own home can be awesome, but it can also make you feel lonely, bored, less productive and more stressed. Although there are many perks to being self-employed, it is riskier, and it is not for everyone.