The Benefits of Being Self-Employed

Millions of Americans dream of working for themselves , while many are living that dream. Self-employment can be satisfying both financially and spirituallyW however working for yourself is not an easy choice and can be a long, tough road before you are able to experience any success. You no longer have employers assisting you with insurance premiums, no unemployment insurance and no worker's compensation. There are some excellent benefits however, which may help to motivate you towards making the leap to being your own boss.

The Benefits of Working On Your Own

Self employment allows you to have more flexibility, more freedom and more privacy than what you will ever have working for an employer. You will also have the added benefit of being able to take more tax deductions.

Flexibility
When you choose to be self-employed, you are also choosing to be your own boss. What I personally love best about working on my own is the flexibility. I am able to work around my family's schedules. I no longer have to try to explain to my boss why my children have so many doctor appointments. I am able to choose to go on my kid's field trips when I choose to. I can work as early or as late as I desire.

Of course, how much you earn is directly tied in to how much you work. If you don't work, there is no pay. If your able to be responsible with the freedom that a flexible schedule gives you then self employment may prove to be a great option for you. However, if you are an individual who requires alot of structure and find it difficult to be motivated without a set schedule then this may be a challenging area for you. You may still be able to work on your own if you recognize early on what personally motivates you . It also helps to have a weekly schedule. This allows you to set boundaries.

I started working from home eight years ago after my twins were born. They were both born with medical health conditions, which required alot of my time. I already had a son who has special needs.. Before the twins were born, I had to take alot of time off for my oldest son's doctor appointments. While my boss was very understanding , he also switched my wage from salary to hourly. Going into work daily was very stressful. It was difficult trying to assist the school with my son from an office and not be able to be more involved.

Once the twins were born, I knew that working away from home was simply no longer an option. We became a one income family. As a result, our finances plummeted and we struggled to pay the bills. We had very high medical costs to keep up with and it was not long before my husband was laid off. Working from home became critical.

It was very tough for me personally to learn how to balance my home life while working out of my home. Over the years it has become very rewarding. Not only financially but also in terms of the control it gives me over my life. You are in the driver's seat and have the ability and responsibilty to make all the choices concerning your business. If you need more cash flow you can choose to work longer hours. I have to admit there are some weeks I have to be very creative about fitting in my work hours but I always manage to get it done.

Higher Pay Potential
Working for yourself may result in having a higher earning potential compared to when you work for an employer. Many corporations and firms charge their clients up to 40% more than they pay their employees. As a business owner you will have the ability to set your own prices. Alot of how you earn directly depends on your skills and and the demand of your service or product.

Many self-employed individuals are able to offer their clients services at much lower fees than what are charged by the bigger corporations. Smaller businesses are also often able to offer the client a more personal touch than the bigger companies.

Tax Benefits
When you choose to be self employed you will receive many tax benefits, which are not available to employees. You will no longer be required to pay state and federal taxes out of every paycheck. You will instead pay quarterly taxes four times a year based on an estimate you be able to set which gives you more control over your cash flow. You are also able to take tax deductions, which are not available to you when you work for someone else. For example, you may be able to deduct meals, travel expenses, equipment costs and insurance payments.

As a self-employed individual you are also able to invest in SEP-IRAs and Keogh Plans. These retirement options have tax advantages including the ability to shelter a certain amount of income until retirement.

Privacy
Another benefit of working on your own is the ability to have more privacy from the eyes of the government. The government keeps track of employees through their employers for a variety of reasons. It is federal law for employers to report the name, address and Social Security number on each newly hired employee to the Department of Health and Human Services. All of this information is stored in a huge database with the main purpose of aiding any overdue child support. Most states have similar laws. Some states even require more information such as birth dates, telephone numbers and the type of insurance coverage provided to new employees. However, when you are self-employed, many of these laws don't apply to you . This gives you added privacy.

Becoming self-employed is no easy decision but it can have many wonderful benefits. Many of the freedoms and benefits that result from working for yourself are dependent apon how much time and effort you put into your business.