Finance Globe

U.S. financial and economic topics from several finance writers.
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Why Self Employment Goes Wrong for Some People

Why Self Employment Goes Wrong for Some People

There are people who make the move into self employment and never look back. Every step they take is one that moves them closer to their professional goals.

Conversely, there are people who soon realize that they are now faced with a variety of challenges. And for this reason, they are truly scared.

Do you ever wonder why self employment goes wrong for some people? If so, here are three reasons for this:

1. They neglect to do their homework. These people understand the benefits of self employment, such as the schedule flexibility, but they don’t see everything that goes along with it.

Before you make this move, it is imperative to fully understand what you are getting into. Make a list of the pros and cons and be sure that you are 100 percent comfortable with how your life is going to change.

2. They don’t understand the financial implications. There is no denying the fact that working as a self employed professional gives you more earning potential than ever before. You control your own destiny in many ways.

Here is the problem: there are other financial implications to concern yourself with. Did you know your tax situation will change? Are you aware of the fact that you may have to purchase your own benefits, such as health and dental insurance?

Don’t jump into self employment unless you are comfortable with what this means from a financial perspective.

3. They are not prepared for the ups and downs. This is a particularly big concern in the early days of self employment. The stability of a traditional job is nowhere to be found. For this reason, you must get used to a fluctuating workload accompanied by a fluctuating income.

If you like the idea of working as a self employed professional, now is the time to learn more about the pros and cons. Just make sure you know why this goes wrong for some people. This will allow you to avoid a similar fate.

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Comments 1

Frank on Tuesday, 08 March 2016 09:30

Self-employment can be extremely risky and very stressful. As Chris lays out in the post, there is a lot of unknowns so you have to make sure you do your homework before fully diving into self-employment. One alternative is start part-time or as a side gig until you get feel fully comfortable doing it full-time.

Self-employment can be extremely risky and very stressful. As Chris lays out in the post, there is a lot of unknowns so you have to make sure you do your homework before fully diving into self-employment. One alternative is start part-time or as a side gig until you get feel fully comfortable doing it full-time.
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