The year 2020 will no doubt go down in history as one of the worst years. What started out as a two-week lockdown to flatten the curve turned into over a year of staying at home.
As a result, many are reconsidering their return to the office, looking instead to start a home-based business. If this sounds appealing listed below are a few pros and cons to self-employment.
Pro: Make Your Work Schedule
One of the most appealing selling points of self-employment is the ability to create your own work schedule. Shockingly, not everyone is an early riser. Some people prefer to work later in the day or overnight.
Self-employment makes it possible. As a result, you no longer miss your child’s play or practices. You can schedule appointments midday and shop when others are at the office.
Pro: Skip the Commute
When you work from home, you eliminate a long commute. For many, it’s a matter of steps from the bedroom to their home office. This translates into less stress and no additional costs for gas, tolls, and frequent auto repairs. You set up your home office to contain everything you need to be productive.
Pro: No Work Office Attire
While you may have meetings that require looking professional, mostly, working from home eliminates the annual cost of a tailored wardrobe. You can literally work in your PJs. However, getting dressed gives you a mindset of being at work, ultimately making you more productive.
Pro: Time Off
When you work for an employer, you ask for time off. Self-employment gives you the freedom to take time off when you want it. Vacations are of your time and choosing, as well as appointments. Want to visit a relative for an extended stay? It’s doable. With your computer in tow, you can work from almost anywhere.
Pro: Select your Clients
When you’re self-employed you find your clients. If you find them difficult to work with, you stop the work. You no longer have to bail out others on a group project or take heat from your boss for a project gone wrong. You can have as many clients as you want.
You can even get personal loans, no credit required, to help you advertise your business. That will allow you to find more clients.
Pro: Unlimited Earning Potential
As an employee, you have to wait for a raise. Sometimes, you even have to work up the courage to ask for one after over a year without. It’s your company and you have unlimited earning potential.
Have a special event or holiday coming up? Take on a few extra jobs and increase your salary.
Con: Fluctuating Salary
Unlike working for a company, self-employment doesn’t provide a set weekly paycheck. For some, this can be difficult to maintain finances. However, many freelancers who have been in the business for years, learned how to budget their money so that a month of surplus offsets a month of disappointing sales.
Some self-employed people still need to borrow money here and there. This is another time when a personal loan would come in handy.
Cons: Risky to Lenders
Being self-employed can become difficult financially when you need to borrow money. Banks are very selective. If they feel a lender is a risk, they won’t approve a large loan for a home or something of that nature. This can prolong a home-based business from getting off the ground, or cause it to go under quickly. Prior to starting your own business, have money set aside to cover the initial expenses and maintain your house bills for at least six months.
Con: No Paid Benefits
Unfortunately, one drawback to self-employment is the lack of benefits. You won’t have a paid vacation or paid sick leave. You also won’t have health insurance or retirement benefits. If you want these, you’ll have to pay for them out-of-pocket.
Post-2020, many people in the workforce are looking for an alternative to the office. Self-employment is on the rise. If you too are considering working from home, weigh the pros and cons carefully.
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