Tempting as it may be to just go for it there are things to consider before becoming self- employed.
I have been self-employed for over 10 years now – here are the things I think are absolutely essential to know and have in place, before you make the move to self-employment.
3 things to consider before becoming self-employed
So you need to love what you are going to do , you need to know it will make you enough money and you need to protect your income – let’s explore why these issues matter so much
You need to love what you are going to do
I am a writer.
A very happy and content writer, in love with my profession. I am the author of 6 books and 6 blogs!
I have written for pleasure all my life, I took a degree in literature and dreamed of writing books from being a child. My first career was as a social worker and don’t get me wrong, I completely loved my job but I had an itch and an urge to write I could not quell.
To cut a very long story short I ended up, almost by chance, writing a book. In order to promote the book I began a blog. Suddenly I felt complete. I absolutely enjoyed my writing and I did not want it to just be hobby.
I thought long and hard about the social worker I had trained to be and knew I could use my therapeutic skills in my writing and that this move to self-employment would enable me to be less stressed and have more time with my kids too.
Becoming self employed fitted with the lifestyle and work I wanted. It was a leap but I knew I loved what I was going to be doing and this mattered so much to me in every aspect. I was committed to seeing it through – but would it pay? this is one of the things to consider before becoming self-employed
You need to know you can make enough money
I am a huge advocate of being brave and taking the leap when you know something feels right, but with a caveat.
Debt and money worries are awful and overwhelming they can lead to depression, stress and poverty. Money problems can spiral quickly and last for a long time. Even if you are doing something you love and believe in, not making enough money is a huge problem and not worth it.
Financial security is essential. You don’t have to be rich but you do have to be secure in order for you and your family to feel safe.
It is very wise to dip your toes into self employment as a side hustle before wading straight in. Check if it works, do your research, have some savings in place – all these things will smooth the path to self- employment and ensure you are on the right track. And then make sure you have income protection firmly in place
You will need Income protection
Do you know how income protection works?
Well, in a nutshell income protection pays out a percentage of your salary if you’re signed off of work through illness or injury (usually 50-70%, depending on the amount you choose when you buy it, but some policies do pay out 100%).
Absolutely crucial if you are looking to become self employed ( or work in any capacity really.)
Last year I unexpectedly ended up in hospital for 2 months, without income protection. Our finances took a massive hit, how I wish I had got my insurance organised beforehand.
Don’t assume you are not eligible
Because I have ongoing health issues I just did not occur to me that I would be eligible to take out income protection – but it turns out I was wrong.
LifeSearch are one of the U.K’s biggest life insurance brokers and luckily passionate about about finding cover for as many people as possible, even those with pre-existing conditions like me that would have previously had them excluded from being able to buy affordable insurance.
Income protection will bring you both peace of mind and practical financial first aid should you need it. It is an essential pre-requisite to becoming self-employed and one I ignored at cost.
Make sure you have this in place.
Self-employment is wonderful
Self-employment is a wonderful way to work, your time is flexible, it works really well with family life and you can follow your passion. But do make sure you know you can make enough money, are doing something you love and of course that your income is well protected.
3 things to consider before becoming self-employed is a collaborative post