Have You Always Fantasized About Working For Yourself? But Couldn’t Decide Between Self Employed vs Employed?
Thinking about going it alone, working for yourself, quitting your job and starting your own business? Or maybe you’re tired of trying to make ends meet and just want a stable job with benefits? There’s a lot to consider when deciding on what kind of work you want, whether you want to be self employed vs employed.
Over the past couple of years I’ve worked for myself but recently made the change to work for an employer. Both come with their own share of positives and negatives. I’m a corporate employee by one of the largest real estate company in my area. But personally, I have a preference for being self employed.
You might ask, “Am I Self Employed?” If you work for yourself, own your own business, engage in “Gig” work or freelance work, or are an entrepreneur then, yes, you’re self employed.
Pros of Being Self Employed
Not Having A Boss:
It’s probably the sweetest part of not being employed by a company. I don’t have to answer to anyone other than my clients. My career is not determined or influenced by one single person. As an independent contractor, I had to kiss ass with clients but if a person didn’t like me or respond to me by giving their business then it wasn’t the end of the world. Working for a good, caring and mentoring boss is probably the rarest thing in the world. I wouldn’t depend on it. People that I felt I could look up to in my industry fell far and few inbetween but working for yourself means you’ll only have to look up to yourself.
Sense of purpose:
I knew exactly how I wanted to run my business. I knew I could find a way to make money that would fit my lifestyle and personality. I motivated myself and kept my spirits up during slow periods because at least I was “making money on my terms.” I’m employed now but I definitely miss the days where I felt self-motivated and every dollar earned had so much more value.
No Red Tape:
I really like not having red tape on how to run my businesses or how to do things. Creative solutions are welcomed when you run the show. No rules or regulations. You can go as far as you want to go. Some people feel stressed in that kind of situation. Like, “What do you mean I can do whatever I want and how I want it??” “This is chaos!” Nope, with choices come freedom and innovation.
Flexible work hours:
Ok it wasn’t that flexible. I had to work when my clients were available which in real estate meant evenings and weekends. But it wasn’t every weekend and it wasn’t every evening. If it was slow, I worked less. If it was busy, I worked like a dog. Real estate is a demanding industry. Some other versions of self employment can be more flexible and allow you to work from home like freelance writing, consulting or social media marketing.
Sounds really awesome, right? Why doesn’t everyone just work for themselves. Why would anyone work for “The Man”?
“The Man” pays your taxes and subsidizes your health insurance/benefits:
Did you know that your employer pays your taxes? Specifically, part of your social security tax. An employee pays 6.2% and an employer will pay the rest. When you’re self employed you’re paying the whole 12.4% for social security. What about your commuter benefits, health insurance premiums, what if you had to pay the premiums outright or pay out of pocket? PTO is also pretty nice. Not going to work but getting paid anyway. These are things that we just expect when employed but self employed individuals have to cut into their profits to cover these costs. The self employment tax is a pretty penny and should be considered when deciding to take the plunge. That’s probably one of the bigger benefits of being employed vs self employed.
You Get Paid No Matter What:
Whether it’s a bad day or a good day, you get a check at the end of your two weeks! I don’t know about you, but I like to get paid. Having to hustle day to day or deal to deal in order to make income can get tiresome. The truth is when you’re self employed your not going to make as much in the beginning as your employed counter parts. There’s no promise you’ll even succeed to make equivalent to what you would have made if you were employed. The beginning of starting your business will likely be slow and you’ll need some sort of cushion to break yourself in. My first year in real estate I made -$6000. I made negative income!!! The cost of my business was more than my income. I lost money. Then my second year was $36K, then 46k. Now I’m making double that being employed.
When it comes down to it, working for yourself isn’t easy. The type of employment you choose is entirely up to you and is a matter of personal choice. For right now employment seems to be the answer, but who knows, if a good business opportunity presents itself, I just might take it!
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