3 Simple Ways To Get The Most Out Of Being Self Employed
If you are trying to escape the rat race, then you might be tempted to work for yourself. This could be linked to your current role as a full time employee or it could be in a totally different field. Someone may choose to leave the investment banking world to become a nature photographer. It’s not unheard of for high flying accountants to shun the financial sphere and become jewellery makers. Whatever it is that you want to do, you can follow your passion and achieve this in a self employed capacity. Take a look at these three simple ways to get the most out of being self employed.
Before you do anything you need to make yourself as tax efficient as possible. Even if you are starting out as a sole trader, get yourself some impartial financial advice. Many people choose to set up as a company as this saves them money on taxes. Limited company accounts allow you to pay yourself a combination of dividends and a salary to allow you to exist in the most tax efficient yet compliant way. It doesn’t matter what trade you are in, a limited company is always a good idea if you think you might be earning a decent amount of money in your first year.
Work Life Balance
When people move into the self employment world, they may assume that their lives become infinitely easier straight away. Nothing could further from the truth. You will be escaping the rat race to work longer hours as you try to make a name for yourself in your chosen industry. You need to try and compete with already well-established industry rivals. This can be tough as a complete novice and may require you to outsource business functions such as marketing and social media management.
Being self employed may seem like jumping out of the frying pan and into the fire. However, over time you will find that things do settle. This can allow you to take some time out and spend time with your family After all, this would have been one of the motivating factors when choosing to leave full time employment. You need to look after your mental health and not allow any stresses to get the better of you.
Work From Home
If you are trying keep overheads to the bare minimum when starting your own business or going freelance, then you should consider working from home. While you might want to keep personal and professional separate, there is nearly always a room, or shed at the end of the garden that you can convert for business purposes. This can mean the odd pajama day and sipping your favorite coffee when answering emails. However, working from home does have its pitfalls. The temptation to scroll endlessly through your Facebook feed will be ever present as will the TV beckoning you to switch it on. Be strong, find some willpower and a home office could be ideal.
Working for yourself isn’t as easy as it first appears. But with some determination and by being tax efficient, you will get the most out of your newfound working freedom.