The Hard Truth About Being Self-Employed
There’s nothing like the independence of being self-employed. However, being your own boss comes with its challenges. Here’s the truth about self-employment.
Imagine never having to sit in traffic again, and you can work in your pajamas from the comfort of your own home. This is the dream of many people who have the goal of being self-employed. And, while self-employment certainly has some perks, there are also a few hard truths you should know about.
Before you quit your day job and head out to find the gig of your dreams, check out these facts about what it’s really like to be self-employed.
You’re Responsible for Paying Your Own Taxes
When you work for a company, your income taxes are already taken out for you. As a self-employed worker, paying your taxes on a quarterly basis is all on you.
If you don’t pay your taxes, you stand to owe a ton of money and a few penalties at the end of the year. Be aware that you should save a percentage of your self-employment income each quarter so you can pay those taxes out on time.
Depending on the size of your new business and your income, it’s a good idea to enlist the help of an accountant. They can walk you through the process of paying your taxes and help you come up with a viable game plan.
Being Self-Employed can be Lonely
The water cooler conversations and work gatherings are over when you’re self-employed, which means it can be quite lonely for some people. Having the freedom to do what you want, when you want is great, but you might miss the camaraderie of others after a while.
A good way to combat this new sense of loneliness is to find a network of fellow self-employed people online. Coworking spaces are another fantastic option if you prefer to work around other people throughout the day.
Keep in mind that you’ll want to create a good work-life balance so you don’t get burned out. Reach out to other people who are taking the plunge so you have a good support system.
You Need to be Organized
If you decide that being self-employed will work for you, just remember to keep all of your ducks in a row. This means you should have all paperwork and reports organized either on paper or your PC.There are plenty of resources to help you like paystubcreator.net and others. Make a list of the things you need to keep track of, and then make that part of your daily routine.
Once you get in the habit of tracking things like costs and income, the whole process will be much easier.
Taking the Leap
It’s true that being self-employed has plenty of perks, but there are also a few things you should keep in mind. As long as you understand the implications of self-employment, it can be a freeing and fulfilling experience. Visit our website for much more on employment, work, and business strategies so you can be on your way to income freedom.
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