With so many employed persons diving into the world of self-employment – from independent contractors to freelancers, you would think you are really missing out a great deal and that you’re not exploring your inherent skills to the maximum.
But is it all sunshine, rainbows, and unicorns being self-employed? For some young people out there, it can be, but for others, it can be a bitter taste in the bud. Some folks thrive working for themselves as freelancers or independent contractors, and some people attempt it and hate it.
But if you have experienced both sides of the divide, you would understand that both have their up and down moments. So, how do you decide which one is suitable for you? Well, before we get to that, let’s first define what being employed vs self-employed means. Taking at least a minute to understand how the two differ is important before you settle for one.
Being employed means…
You work for someone or a company who pays you a salary for your time and service delivery. If you are employed, your employer takes care of your:
- Retirement plan
- Medical care
- Social security
Being self-employed means…
You don’t have a boss, you’re an independent contractor, sole proprietor, or a freelancer. In terms of benefits, the biggest advantage of being self-employed is that you are in charge of your time. Nobody controls your time. You decide when to work and when not to. You decide when to go on vacation or when to resume business. However, you are responsible for paying:
- Social security
- Retirement plans
So Which One Should You Choose?
No matter your choice today, there are advantages and disadvantages of being self-employed vs employed. Honestly, you can enjoy your job or business and still complain once in a while about your situation.
Whether you decide to work for a company or for yourself, it all boils down to your personality type. If you prefer to control your work hours, and by extension, the type of work that you do, then try self-employment.
On the other hand, if you care about retirement benefits, sick pay, or vacation pay, then work for a company.