Being self-employed, or being your own boss, is a dream come true. When you’re self- employed you don’t subscribe to the 9-5 lifestyle nor answer to a boss. It’s not easy street, though, for one must pay health insurance, find time for vacation, and be ready for anything. Here’s how to prepare for the worst.
No Forty Hour Workweek :
Those who are paid a salary engage in a forty hour workweek, some shorter depending on holidays and waged vacation hours. A self-employed person needs to work… as often as needed. Many people work over forty hours per week to make up for the unstable nature of sales leads.
Generating Sales Leads :
A self-employed person enjoys answering to no one, but the money must come in. A continuous stream of income necessitates sales leads or paying a service or person to do it for you. It’s a skill some lack, yet generating leads remains essential. Getting leads from another source may prove successful, but you’ll need to pay a service fee in addition to a percentage of the sale. Plus, the sales person needs to be well educated on your product and service.
Medical Emergencies :
What happens if you need a root canal? What if you get in a car accident, can’t work, it’s the other driver’s fault, yet you need to engage in a lengthy and costly legal battle before getting the funds you deserve? Get help after an accident by seeking experienced car crash attorneys. Those who are self-employed need to pay for their own medical insurance, and if injured, there’s no one to pay for time off.
Where’s the Vacation Time? :
There’s no vacation time for the self-employed. Salaried workers normally look forward to two weeks paid vacation, but entrepreneurs must schedule their own time off. Some don’t mind the sacrifice, yet finding time for children, love interests, and spouses can be challenging. Allocating available time is an added task that some have trouble addressing.
No Passing the Buck :
Entrepreneurs may have difficulty taking ownership of wrongdoings or admitting faults. It adds stress to personal and business relationships. A self-employed person needs to take ownership and be straightforward with disappointed and disgruntled clients. Others in a larger system can ‘pass the buck,’ or diffuse personal ownership to deflect taking responsibility for an error. There’s no one else to credit or fault when you’re self-employed.
Growing Pains :
Some entrepreneurs love being self-employed and dream about building a big business. Some experience growing pains in finding additional funds, dealing with investors, and needing to manage workers. The need for continuous income inspires some to go bigger, yet growing a business comes with its own complications.
Doing Versus Talking :
Some personalities are great at providing a service or product. Not all do’ers, however, are talkers, or in the case of the self-employed, salespeople. Some may provide exceptional service yet turn potential clients away due to poor communication skills. While those seeking a product may not need to speak with the owner, a service provider, such as a graphic designer, is expected to host close communication with associates and clients.
No Work Ethic :
It’s a tough pill to swallow; some don’t have the self-discipline to be self-employed. The self- employed are entitled to take days off whenever they want or work shortened days. Do both often enough and you’re not working at full-time capacity and could earn less than needed. Like a person who is quick to whip out their credit card to make impulsive purchases, some don’t have the work ethic for self-employment.
Modify Consumer Behavior :
Those who are self-employed benefit from being frugal as a consumer. Find ways to save money each day by clipping coupons, buying in bulk, and opting to eat at home versus going out. It’s difficult since many self-employed individuals find themselves with free time, which could inspire unneeded and compulsive buying.
Speak with an Accountant :
Those who are self-employed get help from knowledgeable accountants who know ways to save on taxes. Freelancers get paid in full, meaning unlike a paycheck, no taxes are taken out. That means the self-employed need to plan ahead and ensure they have enough funds to pay taxes at the end of the year. Some freelancers get in trouble with the IRS, paying late due to poor budgeting.
Get a Part-Time Job :
Many benefit from the wages earned working a part-time job. While you’re not entirely self- employed working part-time, it could compensate for a freelance position that is not providing the income needed to sustain sustain self-employment. A good part time job to pickup is uber. You can do it whenever needs and all you need is a license and a car to use for uber driving.
Maddison Collins knows firsthand what it’s like not to be able to work even though she desperately wants to. She is self-employed, which makes matters even more difficult from a financial point of view. Maddy writes about how to make sure you’re prepared for anything when you work for yourself.
This post complies with my Disclosure Policy.