There’s much to love about being self-employed. You get to set your own hours, rarely have to work with people that you don’t like, and get to reap the rewards of your own efforts. That’s a lot of good stuff that means that people who turn self-employed rarely go back to being regular employees.
However, while there are good elements to self-employed life, there are downsides. For instance, you’re usually at greater risk than regular employees. And for that reason, it’s important to take steps to protect yourself. In this blog, we’ll take a look at some of the most effective methods for doing just that. The end result? You’ll be better off financially in the long run, and you’ll have greater peace of mind.
Establish Your Boundaries
People can get pretty fed up with the usual 9 – 5 routine, but there is one merit to that way of life: once 5 pm rolls around, the worker is free. The same can usually not be said of self-employed workers. Because they know their success depends on their work, they can end up working longer hours than they should. As such, it’s a good idea to establish your boundaries. Once your cut-off time has arrived, that’ll be it — time to stop working. Even if you’re eager to work longer hours, it’s often actually better not to. Studies have shown that the quality of work decreases when fatigue sets in. So by getting rest, you’ll actually be helping your business.
Understand Your Taxes
It would be oh so nice if you didn’t have to pay taxes. But that’s not the world we live in. If you’re making money, then chances are, you’ll need to pay taxes. It’s important to get a good grip on your tax obligations early on. If you don’t, then you could be hit by some pretty severe penalties that impact your financial situation or even end up in legal difficulties. It’s also important to take a look at the expenses you can claim against your taxes. Paying tax is bad enough; you certainly won’t want to pay any more than you need to!
You’ll hope for the best for your business. But you should expect the worst. A single incident at your business could spell big financial trouble. That is unless you have the right insurance. So be sure to check out which insurance you need, since policies can differ depending on the type of work. For instance, if you drive for Uber, then you’ll need Uber drivers insurance. If you work from home, then you may need business liability insurance. If you have any doubts about what you need, it’s best to speak to an insurance expert, who will be able to guide you through all the options available to you.
Create a Saving Pot
If the business is going well, then it’ll be tempting to think that it’ll always be going well. But that’s a risky assumption to make. The truth is that no one knows what’s coming up ahead. Who could have predicted that the coronavirus pandemic would shut down the global economy, for instance? There’s no way to know for sure that’s coming up ahead. All you can do is make sure you’re prepared for any potential downturn in fortunes. You can do this by setting aside some money. This will ensure that it’s not the end of the world if you have to face a few weeks without an income.
Stay Ahead of the Game
Everything could be running smoothly right now. But who knows if it’ll be that way in the future? Your industry will be changing, and if you’re not ready for those changes when they arrive, then you could be left behind. Make a habit of keeping up with the news related to your industry, attend trade shows, and keep abreast of any changing legislation that may impact you in the future.
Connect With Others
Finally, be sure to invest in your mental well-being, especially if you work from home. Working from your kitchen is fine for a day or two, but over time, it can cause you to experience mental health issues. We’re not meant to spend so much time alone! One way to get around this is to connect with others. For instance, are there online communities built for people like you? You may also consider joining a coworking space, which can do wonders for productivity — and you’ll be likely to meet other entrepreneurs who can help you, too.