Do you currently work a full-time job, possibly stuck in an office from 9-5 every single day? If so, it’s possible you’ve seen or heard people talk about being self-employed. Some envy grows inside of you as you listen to them bang on about how great it is to set their own schedule and not answer to anyone. It sounds like the absolute dream – who wouldn’t want to work for themselves?!
Yes, the idea of self-employment has long been seen as a refreshing career path. Those of you who struggle to take orders or have had bad experiences working for nasty bosses will love the idea of going at it alone.
Nevertheless, is self-employment really worth the hype? Does it genuinely offer a better alternative to full-time employment, or are there some hidden concerns people don’t talk about? Plainly, you get some cons with the pros – but how does everything stack up?
The advantages of being self-employed
Right off the bat, some of the key advantages of being self-employed are:
- It’s easy to become self-employed
- You have no salary cap or glass ceiling
- You have more control over your life
- It can be better for your health
Becoming self-employed is drastically easier than finding a job. If you were to go down the full-time employment route, you’d have to partake in the tedious tasks of building a resume, applying for jobs, going to interviews, etc. None of these tasks needs to be done to be self-employed. All you have to do is decide what you want to do in life. Perhaps you wish to become a copywriter, or possibly a graphic designer. It’s a simple case of gaining the skills and then going out and looking for work. No resumes have to be written, and no interviews; it’s extremely straightforward.
Moreover, you set your own rates. It’s up to you to decide what you charge for your services, so there will never be a glass ceiling above you. Your earnings potential will go through the roof as you don’t have a set salary that will never budge.
Similarly, you have more control over your life as you can choose when and how you work. It lets you set a schedule that moulds itself to your daily routine and helps you be as productive as possible. As a result, this is also better for your health. You no longer do the 9-5 grind; you choose to work whenever it is best for you. You could even be a digital nomad who works while travelling the world!
The disadvantages of being self-employed
While the advantages are plenty, it’s important to note that self-employment comes with a few concerns/drawbacks:
- Consistent work is never guaranteed
- You don’t have access to any benefits
- You technically still answer to other people
- You need to do your own taxes
The biggest downside of self-employment is that work isn’t guaranteed. While it is easy to become a self-employed individual, that doesn’t mean you instantly start making money. It could be weeks or months before your first gig, and then you may struggle to earn a regular source of income. But, the more experienced you get, the easier it is to ensure that money keeps coming in.
Another big drawback is that you don’t get any employee benefits. There’s no pension, no paid annual leave, no sick days – all of this comes out of your pocket. If you want to take a break and go on holiday, you won’t get any money for the days you aren’t working. This is perhaps one of the most underrated benefits of being in full-time employment; you get lots of benefits on top of your salary.
It’s also worth noting that you may not have a boss, but you still answer to other people. Your clients are still technically bossing you around and telling you what to do. There’s every chance you get some annoying clients who make your life hell. What will you do? If you stop working, you don’t get paid!
Lastly, and this is maybe a bit trivial, you have to file your own taxes. This could mean you end up making mistakes and paying penalty fees – or possibly paying too much without realising it.
Is self-employment worth the hype? It could be a viable career path for you, particularly if you feel constrained by full-time employment. However, be aware that it’s not perfect! There are some advantages of working for an employer that you may miss when you are self-employed. Weigh up both sides of the coin and decide which path is the best for you.
