The Financial Benefits of Being Self Employed

Some people choose to become self-employed, and others have self-employment thrust upon them. You may have been fired and are struggling to find work, and so freelancing seems to be your only choice. On the other hand, freelancing may seem like an attractive career option, with manifold benefits, and you might be thinking about quitting your day job to work from home.

 

Whatever your reasons, everyone has visualised being at home in their slippers on a Monday morning, instead of at their office desk. Becoming self-employed can turn this dream into a reality.

 

Freelancing seems to be increasingly popular in the UK and the US, with 44% of Americans working for themselves. In the UK, 4.1 million people work freelance. Employment in both countries is at rock bottom, as their economies continue to limp on through financial austerity. It’s no wonder that people are choosing to employ themselves.

 

With many people struggling to balance work and home life, freelancing presents the perfect opportunity to dictate your own hours and choose your own clients – effectively, to be your own boss. Being in charge of your own career makes you master of the money you earn.

 

Set Your Own Rates

 

Only you decide how much you’re worth. Your hourly rates are set by you, based on the market, and can easily crank up to double, or even triple, of what you were previously earning.

 

Your rates are usually higher than an average, employed worker’s because you provide specialist, short-term work that is flexible for clients. Contracts can last from a number of years to just a few days, but either way, salaries are consistently high because employers don’t have to fork out for sick pay, holidays, or any of the benefits a long-term employee receives.

 

The amount of money you can charge will obviously depend on your field of specialities, and frankly, how good you are at your job. For a new freelancer, it is advisable to keep your charge low until you are in greater demand and have a steady stream of work at your door. Once you’re established in the freelance world, you can start cranking up rates to reflect the market and your talents.

 

Working for Multiple Clients

 

How much you work is up to you. You can do as much overtime as you like at high hourly rates, and adopt as many clients or projects as you can handle. It’s also up to you to axe those clients that prove financially unviable and hunt the big spenders. When faced with a client that seems fiscally dubious, run a mile in the other direction. It’s not unheard of for freelancers to be cheated out of their pay cheque.

 

Tax

 

If you seek financial advice, it is likely that you can considerably reduce your tax. As a freelancer, you are not required to pay as much tax as a normal business. It may be possible to deduct your business expenses from your income, so only your profit gets taxed. Make sure you keep receipts so you have legitimate proof of your expenditure.

 

This guest post was submitted on behalf of Brookson by financial blogger Francesca, who comes from the UK.

22 thoughts on “The Financial Benefits of Being Self Employed

  1. Being self-employed has its pros and cons. One thing is that when you’re starting out, it might not be easy to land jobs. In addition, jobs may may not always be constant. However, it’s really an interesting experience!

  2. Self employment or some may call it running your own business is the best way we can save for our future. Though a business bears lots of risk but the profit margin is higher. The best advantage of being self emplyed is that we can explore a larger market and their no rules or restrictions when you are your own boss.

  3. Even while in college my brother was clear that he wanted to do something on his own rather than take up a job. While I worked full time for several years, before having to quit to honor some family commitments. But whatever be the reason for taking up self-employment as a career choice, we both believe that it provides greater work satisfaction. I get to manage my own schedules, which is a blessing in itself, and get to move at my own pace rather than being burnt out by constant deadlines and fire-fighting.

  4. The amount of independence and self control we enjoy in a self employed business is always much prefered than serving someone else through a job. You are completely responsible for your engtire profit and loss. Here you can enjoy the heavy profits and blame no one for the loss, thus life seems almost sorted.

  5. Freelancing can be actually fun, one can work as per the availability of work projects and save most of the free time to spend with his family and friends. It also helps earn good and fair income which is sufficient for the person and his family to live in content. Self employment provides enough advantages.

  6. Working freely under no pressure is always a fun way to concentrate on your work and make the most out of your business. Hence, self employment on the priority list. I would like to be self employed so that I can work when I want to and the other time just stay free and enjoy my life with my family.

  7. It really depends on one’s preference, but I believe that these are really great points to look at when you are the only one in charge of doing everything to earn money. It takes a lot of hardwork and discipline to stay focused in this setup, but it is really rewarding especially when you get to work on a lot of projects and get the trust and confidence of your clients.

  8. When someone chooses to undertake a business and stay self employed, he chooses to have the entire power and control solely in his hands which also includes the cost of production, sales and the profit margin. When one is the owner of such major decisions, financial benefits increase and risks lower down with good planning.

  9. The biggest advantage of working as a freelancer is that we can freelance in a field that we are passionate about. Big businesses may provide job security, but money and security are nothing compared to the joys of passion. A point to be noted is the huge amount of competition in the freelance world, since we’ll be competing against every other freelancer in the world. And 44% of Americans are self-employed! That’s a staggering statistic.

  10. Working from home as a freelancer provides us with opportunities to save a lot of money wasted on travelling and food outside and thereby save that energy to work from home at decided hours of the day balancing it with the house related work. Here we decide the money and the holidays we want to take from work.

  11. The best advantage for me is no boss. I don’t know for some reason my mind gets clouded when my boss sits on my head. Working from home as a freelancer provides us with opportunities to save a lot of money wasted on travelling and food outside and thereby save that energy to work from home at decided hours of the day balancing it with the house related work.

  12. Freelancing is an apparently attractive career option. But the risk involved is a hundred times higher than a stable full-time job. So it is better to let one’s freelance income become regular more or less before one decides to ditch their full-time job. But then again, the positives of freelancing outweigh the negatives big time. We can set our own rates, choose our working hours, choose our clients and most of all, choose the type of work. Tax benefits add-up considerably to the already overflowing pile of advantages.

  13. Life is much easier when you are your own boss. You get the freedom to decide which work you want to do and which you don’t. It is a great enriching experience to work without someone trying to curtail your artistic freedom or nagging you about the deadline. Working on your own is also a great idea because you know how much you can do so can take the work accordingly.

  14. Offcource there is lot of pressure of being self employed because hook or crook there should be some productivity to survive in the market & solely we are responsible for that. The amount of independence and self control we enjoy in a self employed business is always much prefered than serving someone else through a job. Good post, thanks for sharing.

  15. 44% of Americans are self-employed? Wow! I wonder what the situation would be like a few years from now. Freelancing has become too very competitive for a starter these days. For those who’ve already established themselves in this business, a sense of satisfaction hovers over their retired lives. The fact that they did not work under a superior is much more satisfying than the meager financial benefits offered by a company job. I believe the financial as well as the logical benefits of a freelancer are greater than a regular employee.

  16. I was wondering whether or not it’s feasible to make a healthy income out of freelancing. Seems it is. But looks like there’s got to be a lot of competition out there, what with almost half the American population being self-employed. I think almost a quarter of the Australians must be self-employed too. I’ll try my hand at freelancing nonetheless, mainly due to the relative tax benefit.

  17. Being self employed and working from has its own plus. First of all you never have to put up with a snobbish boss who thinks he is the smartest person ever to set foot on this planet and next you can wear anything that suits your fancy to work. But on a serious note working from home is a great option as it saves a lot of time, which you can spend on yourself and your family and that is something priceless.

  18. I love being self employed. I make my own hours, choose the kind of projects I take on, can work from anywhere, and can wear whatever I want to “work!”

  19. The web and mobile development company are committed to prlvide Creative,
    Innovative and quick & quality Website Design Solutions, Web Development, E-Commrce Web Applications,
    Contract Web Designers, Weeb site maintenance etc. What are
    the attitudes of the public or corporations toward your business.
    Affiliate programs ccan be used, however, for extra traffic.

  20. For example, I recently used Raggg Mopp for a cliewnt who produces child safety accessories.

    Creating a positive corporate culture begins with a focuus
    on internal resources. If you’ve ever played wijth color editing
    software that uses sliders for these elements, you probably already understand them some.

  21. Hi blogger, i must say you have hi quality posts here. Your
    website can go viral. You need initial traffic boost only.
    How to get it? Search for; Mertiso’s tips go viral

Leave a Reply

Your email address will not be published. Required fields are marked *