Last Updated on Sep 16, 2022 by James W
For many, it’s almost the pot at the end of the rainbow. It’s something they’ve always strived to get to – and self-employed will always carry benefits that far outweigh any plausible alternative.
However, there can be caveats. While the world of self-employment does carry countless advantages, there’s also a “darker” side.
Many are happy to accept this in their pursuit of a more flexible way of making a living. If you’re still thinking of taking the plunge, read on to find out some of the issues that you might have to begrudgingly accept.
The lack of annual leave
Particularly in the UK, annual leave laws happen to be extremely favourable. Companies are obliged to hand out at least 20 days per year, with many far surpassing this.
On the flip side, self-employed people are not legally entitled to any annual leave. You can, of course, take holidays whenever you want – but this will come at a cost. Quite often, during those early days, it means that any time you take on will result in an immediate loss of income.
The need for complete self-motivation
In a traditional job, you will have “off days”, which is almost part and parcel of a career. There will always be someone there to pick up the slack, and as long as you’re doing your bit, chances are you’ll be fine.
This is not the case when you’re self-employed. Any slacking on your part will be immediately noticeable, and you will suffer the consequences.
The insecurity of not having a regular income
Let’s move on to the classic concern, and for good reason. When you’re employed, you know exactly how much you will earn each month. This gives you a fantastic sense of security and makes budgeting a whole lot easier.
When you’re self-employed, your income can vary greatly from one month to the next. This can make it very difficult to budget, and it can also lead to some serious financial worries.
The pressure of always being “on”
Another big issue is that, as a self-employed individual, you’re always “on”. There’s no such thing as clocking off at 5 pm – you’re always working, even if you’re not physically doing anything.
This can be extremely mentally tiring and make maintaining a healthy work/life balance challenging.
The paperwork necessities
Last but not least, there’s the issue of paperwork. When employed, your employer will usually deal with all the relevant paperwork on your behalf.
When you’re self-employed, though, it all falls on your shoulders. This includes everything from fulfilling your insurance obligations and filing your taxes to keeping track of your expenses.
Historically, these were tasks that someone else in your former workplace would have taken care of. Now, it falls onto your shoulders, and even if you decide to outsource the work, this naturally comes at a financial cost.