Deciding to take a leap into the self employment pool may be one of the best decisions you ever make. Not only does it give you more control over your destiny, but it provides a high level of freedom.
Just the same as any professional endeavor, you need to consider both the pros and cons. One of the biggest drawbacks is the lack of employer benefits. In other words, you have to account for these benefits on your own.
Here are some of the many benefits you are missing out on as a self employed professional:
• Health insurance
• Life insurance
• Disability insurance
• Access to a retirement plan
• Health and wellness programs
Not every company offers each one of these benefits, but many do. Furthermore, when you work as a self employed professional, you and you alone are responsible for deciding what to purchase.
Here is the good thing: you can purchase some or all of these benefits, based on your budget and what you feel is important.
Tip: you may be able to receive some of these benefits through a partner’s employer. For example, don’t purchase individual health insurance until you see if you can join your partner’s plan. This could save you quite a bit of money.
If you are thinking about self employment, don’t make a final decision until you weigh all the pros and cons. If you are okay with the idea of funding your own benefits package, this is a detail you can put in the past. If you aren’t okay with this, it’s time to reconsider your approach.
What are your thoughts on self employment? Do you have any tips for those who are thinking about this professional arrangement?