Finance Globe

U.S. financial and economic topics from several finance writers.
1 minute reading time (276 words)

Is Self Employment the Right Choice? Answer these Questions

Is Self Employment the Right Choice? Answer these Questions

From time to time, the self employment bug may bite you. You dream of leaving your corporate job in the past and doing your own thing. While you are familiar with the benefits, such as increased flexibility and the opportunity to make all key decisions, you aren’t sure just yet if this is the right choice for you.

With approximately 10 million self employed workers in the United States alone, it is easy to see that this is an option. But is it the right choice? Before you can answer this question, you need to address several others:

•    Do you have an idea that will allow you to branch out on your own?
•    Are you okay with the idea of being in charge of every last detail associated with your business?
•    Are you in a financial position to make this decision?
•    Have you considered both the pros and cons associated with self employment?
•    Do you understand what goes into this decision from a tax perspective?
•    Do you have a space in your home in which you can work?
•    Are you capable of dealing with the stress that is often associated with self employment, especially during the start-up phase?

Once you answer these questions, you will have a clear picture into the future. Do you feel better than ever about your chance of joining the ranks of the self employed? Or do you now have more reservations?

This is not something you should jump into on a whim. Self employment is the right choice for many, but only you know if this is the professional path you should travel. What are you going to do next?

How to be More Efficient With Your Budget
8 Reasons It's So Hard to Stick to a Budget
 

Comments 2

Frank on Friday, 04 September 2015 10:38

I would really like to stress the importance of factoring in the additional costs associated with being self employed. Self employment taxes can be a big burden and an unexpected cost that most people do not realize. You also need to include healthcare and retirement benefits that you may have received at your job. These are very important to factor in your decision.

I would really like to stress the importance of factoring in the additional costs associated with being self employed. Self employment taxes can be a big burden and an unexpected cost that most people do not realize. You also need to include healthcare and retirement benefits that you may have received at your job. These are very important to factor in your decision.
Wanderer on Saturday, 05 September 2015 12:07

Following on the previous post ... an emergency fund is a must. You may experience slow pay and no pay situations and the bills still keep on coming in (they expect to be paid). Most new businesses fail in the first three years and often the new business owners don't realize their great idea needs marketing and business administration/finance. Neglecting any one of these is going to lead to death of the company. It is so much fun to have a good idea and by being your own boss take control. However, as the previous poster said, it is not as easy as all that. In my previous life I took the fly to be my own boss and did not do enough home work on the costs of a new start-up and did not have a three year plan to guide me. I floundered and went belly up. It took me eleven years to get my head back above water. So think carefully!

Following on the previous post ... an emergency fund is a must. You may experience slow pay and no pay situations and the bills still keep on coming in (they expect to be paid). Most new businesses fail in the first three years and often the new business owners don't realize their great idea needs marketing and business administration/finance. Neglecting any one of these is going to lead to death of the company. It is so much fun to have a good idea and by being your own boss take control. However, as the previous poster said, it is not as easy as all that. In my previous life I took the fly to be my own boss and did not do enough home work on the costs of a new start-up and did not have a three year plan to guide me. I floundered and went belly up. It took me eleven years to get my head back above water. So think carefully!
Guest
Sunday, 20 October 2019

Captcha Image