The Instant Rewards of Being Self-EmployedSep 18, 2014 Blog Personal Finance
So, you’ve reached the point where you are seriously questioning whether spending 8 hours a day in a cubicle under fluorescent lighting is good for your health and whether it’s normal to cultivate vivid fantasies in which your boss meets an untimely demise. This might be a good time to consider the scary, exciting, tumultuous, infinitely intriguing world of being self-employed.
Listen, let’s not kid ourselves, there’s a lot to be said for conventional employment. You get to go home at the end of the day without the worry of overheads, interest rates, credit reports and various other little irksome details that could make or break a business. You draw a set salary every month that allows you to plan your expenditures accordingly. You might even be lucky enough to get medical aid and a contribution towards your retirement. It’s safe.
That being said, nothing marvelous or groundbreaking ever came from playing it safe. The Good Stuff happens when you hitch up your big boy (or lady) pants, relinquish the safety net and jump head first into the fray.
The Good Stuff Includes:
1. You get to be your own boss
Every single cent you earn goes into your own pocket. This is a very interesting double-edged sword, since it means that you are therefore also responsible for the management thereof. Nothing will force you to become financially savvy quite as effectively as the realisation that the buck stops with you. It’s also significantly more complicated to pull a sickie.
2. The tax man becomes more lenient
Small to medium enterprises are the lifeblood of any developing economy. As such, there are tax incentives in place to encourage the Toms, Dicks and Harrys of the world to set out on their own. In the RS of A working for yourself means you fall into a lower max tax bracket of 25%. This might sound a bit high, but since you are now effectively running your own business you get to claim back on a whole bunch of your living costs. Your flat? That’s your business premises my friend. Your car? Business transport. Lunches and dinners? Client entertainment. Find yourself a good accountant, keep track of your expenses and you’ll reap the benefits of this tax structure in no time.
3. You get to follow your passion and become involved with projects you believe in
There is nothing worse than spending your days working on projects you don’t care about, simply because you have a certain skill required to get it off the ground. When you don’t believe in the creative product it always shows. On the flipside, when you start out on your own you give yourself the space to cherry pick your projects and the people you work with. Furthermore, because the cash is your own, you open yourself up to a brave new world of investment opportunities. Imagine being able to partially fund someone else’s dream by getting involved with peer-to-peer lending, for instance. In this way you could pay it forward and see a delicious return of investment at the same time.
The time is truly ripe to shrug off the self-imposed shackles of conventional employment and finance. There is a world of possibility out there. So locate your cojones, tap into the exciting possibilities that are available to trailblazing entrepreneurs and see what you’re made off. I dare you.