Posted on Wednesday 21 February 2018
In this day and age, “going to work” can mean two entirely different things.
For traditionally-employed people, it might mean driving to a store and clocking in. For the self-employed, “going to work” means sitting down at the kitchen counter with a laptop and a cup of coffee.
There are many forms of self-employment, but all of them include building your own business, rather than working for another individual or corporation.
As we progress further into the 21st century, many people are reevaluating their professional lives and trying out self-employment for themselves. You may be one of these people who are considering hanging up their employee badge and starting their own business.
Truth be told, there are a number of benefits to being self-employed. In this article, we’ll talk about some ways self-employment can truly benefit you.
The Potential for Income Growth is Limitless
In most cases, individuals who work as employees generally receive paychecks on a weekly, biweekly, or monthly basis. Upon being hired, they agree upon a salary and an amount of hours to work every week.
Later on, they can ask for a raise, but there is no guarantee that an employer or boss will agree to such a pay increase.
If no raise is given, traditional employees have only one way of increasing their income: working more hours. This has limits, though, and in the long term it’s just not scalable.
When you work for someone else, your income is greatly dependent upon the generosity of your employer. But when you work for yourself, your earnings are determined by their quality of your work and your ability to market yourself.
While self-employment is not for everyone, if you’re serious about growing your income, this route may benefit you. It really depends on the person and what may work for someone else, might not be your cup of tea.
We're all so different as individuals so just because someone is enjoying self employment, doesn't mean the next person will either. You just have to do your own research and listen to your gut.
The game is completely different for self-employed individuals though. Rather than take an hourly wage, their income is dependent on how they market themselves, or what new products or services they offer. For example, an online merchant may put forty hours a week into their e-commerce site.
If they stop paying, the income drops. Which would be really challenging if you don't have a way or even better, an automated way to generate leads.
They can offer a wider variety of products to make more profit in the same amount of time. A freelance writer who works thirty hours a week can increase her income by working with a wider network of clientele, taking on more challenging writing projects with a higher payout, or increasing her current rates.
The Options For Tax Deductions Are Plentiful
Most employees’ taxes are automatically deducted from their paychecks. While tax season may be easier for traditional workers, easier does not equal better.
You can find a full list of self-employed tax deductions on Quickbooks. Some of the most common deductions include marketing tools, home office expenses, meals with clients, and wages paid to employees.
In some cases, self-employed individuals may be able to write off so many expenses that in the end, the government actually owes them money. Not sure about things you shop for are eligible to be "write-offs" but best to talk to a lawyer about these things first.
That money can then be saved, reinvested, or otherwise used to grow their business. If you need cash to invest in your business before tax returns are handed out, consider a short term loan with My Canada Payday.
A final word regarding self-employment
In current times, living expenses are surging and financial emergencies can occur at any time. Every working person should be striving to increase their economic capital.
Success in the self-employment field takes hard work, dedication, and perseverance. Opportunities to grow one's income and decrease taxes are two of the most powerful ways self-employment has transformed lives, and continues to do so.
Talk with a financial advisor before deciding whether or not self-employment is the right choice for your future. They will most likely (If they are good), share other people's examples with you.
Show you how the filing of taxes is done as a self employed person and many other tips. In fact, never start a business before talking to a financial or even business advisor. Since they already know the game, they can help you out tremendously. They can also help you with the so called "negative" side of running your own show like bankruptcy and more.