Is Now the Right Time to Work for Yourself?
Apr 30, 2021 04:44 AM EDT
Credit : Unsplash
The demographics of the work environment are showing signs of change. Just a year ago, many people worked in an office away from home. Some are now earning income from the comfort of their home. If you've considered making the switch from the office to the home, now may be a good time to act. However, there are pros and cons to working for yourself. Listed below are a few things to consider ahead of making your final decision.
The ability to count on a set paycheck you can count on is one of the best benefits of working for an employer. Knowing the amount you bring home each week lets you create a household budget and stay on track with your monthly expenses. When you start out on your own, it can take several months to gain reputable clients and a reliable income. Without a regular paycheck, it can also become challenging to find lenders aside from one-hour payday loans to fill in the money gaps.
Lack of Benefits
Most times, when you work for a company, you have benefits like paid sick and vacation time. You also have health insurance and retirement benefits such as a 401k. Unfortunately, if you get sick or need time off, you'll do it without receiving payment. If you are the sole income provider for your family, deciding to become a freelancer could end up costing you thousands of dollars in out-of-pocket expenses to gain these benefits.
Working from Home
You might imagine waking without doing the 50-yard dash getting children to school and yourself to the office. However, while you will find mornings more enjoyable, there are several challenges to working at home. Those who succeed must block out distractions like children, pets, and outside noise. They remain committed and motivated. They don't need anyone to give them a push to complete assignments.
You could have direct deposit through your current employer, so your money is always there when you need it. Unfortunately, self-employment means that you will have to invoice companies for your payments. If they stall in their payment, you will do without money earned. Sometimes businesses aren't what they seem, and you may never receive the money owed. You might need to take legal action, which can end up costing you attorney and court fees.
There are many expenses as a freelancer. You'll need a quiet space to work in, preferably your own office. You'll also need to create a website and place ads on social media to attract clients. A good quality computer, high-speed internet, and a desk with plenty of room to hold your equipment and supplies are necessary. You'll need to file quarterly taxes. With the constant changes to federal and state tax laws, having an accountant is an option to consider to make certain your filings are correct.
On a Positive Note
Of course, there are many benefits to being a freelancer. You eliminate long commutes, thus reducing the need for gas and constant vehicle maintenance and repairs. Unless you have clients you meet with face-to-face often, you can also put an end to the need for an expensive and expansive wardrobe. If you so desire, you can literally work in your PJs or sweats. You no longer have to stress over dropping off or picking up children from school or after-school activities. If you want to vacation four times a year, you can do so without getting permission from anyone. Your life becomes yours, and you can do what you want at the time of your choosing.
More people are deciding to work for themselves from home. Before giving your employer your two-week notice, make sure that you weigh the pros and cons to ensure it's a good fit for you.