If you have a friend who is self employed or it’s something you’re thinking about doing, there are a few thoughts that you may have. You picture someone who sits in the house, watching TV and remains in their PJs all the time. That’s not quite the case. There are certain misconceptions and things that people fail to remember about the self employed, and it can affect your success or your friendship.
They’re Only Paid for the Work They Do
When you work for a boss, you get paid vacation and sick pay. Even if you technically have nothing to do, you’re getting paid when you’re in work during the hours you’re supposed to.
The self employed get none of that. They only get paid for the work that they actually do on the day. They don’t get paid for their holidays, so they have to charge more during their working weeks to get that week off.
Work Expenses Are Deducted from Profit Before Tax
The self employed have to pay out so much for their business.
It could be for gas, their utility bills during their working hours, and even part of their rent. There is also the computer costs, stationary costs and anything else that is needed to keep their company running. All of this comes out of their profit before their tax, so they’re not taxed on the items. Those who are employed don’t have to worry about these costs, because the business usually pays for them.
The Self Employed Have to Pay More Medical
There are so many benefits that the employed get that the self employed don’t. Medical and social security costs are among them. This does depend on the country that you are in, but there are always benefits that the self employed miss out on.
They have to pay more out from their own pay to cover these extra costs, meaning that they really have to think about their prices.
Setting Boundaries Is Essential
Self employed people have to set boundaries. It’s really easy to think that they can get up late and breeze through their day. However, it throws their whole working day off.
If your friend says she can’t meet for coffee because she’s working, that is what she is really doing. If she was in a full-time job, people accept that reason so they need to for the self employed. Setting boundaries is about setting specific times for working and then actually working during those times. When it is time to step away from the computer, actually do that.
People in employment complain about not getting raises, but the exact same happens to those in self employment. The cost of living may go up, but the self employed don’t see their wages go up.
The only way of that happening is for the person to raise her own prices. However, then there are the payments for business items that can still prevent the wage actually increasing.