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Pros and Cons of Self Employment

Corey —  February 11, 2013 — 11 Comments

A question I hear a lot is whether or not I plan on ever becoming self-employed. This is something that I think about often as well. I made over $6,000 in extra income in the month of January of 2013, so it’s hard not to think about self employment.

Plus, I’m starting to run out of time. Working a full-time job as an analyst in the financial services industry and also doing all of my side hustles including keeping up with my blog, takes up a lot of my time.

I’m still not entirely positive that self employment is for me. There are many positives and negatives of being self employed, and there are also many positives and negatives of working for someone else. Today, we will talk about the positives and negatives of self employment.

I think whether you will be comfortable being self employed is different with each individual person. Someone who needs someone constantly there telling them what to do might not be a good fit for self employment. Also, a person who is bursting at the seams with creativity or has the passion to be self employed, is probably not meant to work for someone else.

Positives of being self-employed:

1. You’re working for yourself.

This is the number one positive for me. You can do what you want and it can all be based on your own schedule. Everything can be done your way. I’m going to guess that if you are going the self-employed route, then you at least somewhat enjoy what you’re doing as well. I really, really enjoy all of my side hustles, and they truly make me happy. It’s like I’m not even working since I do enjoy it so much.

You also get to watch your company grow and see where it goes. Everything that you do affects the company, which can be a great feeling. You’re doing something exciting with your life and every move you make has an impact on your overall company.

2. Scheduling freedom.

Depending on what exactly you do for self employment, you can have scheduling freedom. You’re not a morning person? Well, then work at night.  Yes, yes, I do know that if the majority of your customers are awake only in the morning, then you will probably just be forced into being a morning person though.

If you can do the majority of your work on a computer, then travel while you work! You can do whatever you would like. Make your self employment position work around YOUR family and YOUR life, and not the other way around. Have fun with what you do.

3. Lower or no costs of commuting.

If you are able to work from home, then your commuting costs have significantly decreased most likely as well. You are also saving all of that extra time by not having to drive to and from work everyday. No more stress from having to sit in traffic for you!

Negatives of being self-employed:

1. You might get overworked.

When you’re working for yourself, it’s harder to have a good work-life balance. You are almost always bringing work home (especially if your work is at home), and it might be hard to take yourself away from your business. It almost becomes an addiction because you want to see your business go places.

2. You don’t know when you’ll get paid next.

This might not mean much if you’re already commission at your job, but if you make a salary, you might miss that regular and stable paycheck. You will most likely have to actively look for new clients and the amount of money you make may vary from month to month.

3. No benefits.

At your current job, you may get health insurance, a fitness center, discounts on various products and so on. However, if you work for yourself, then you most likely won’t qualify for these items. Luckily, my fiancé would be able to add me on to his plans, but not everyone is this lucky.

Do you want to be self-employed? Why or why not?