Are You Ready for Self Employment?

Posted by KC Morgan Mar 8, 2007

Are you ready for self employment? The only person who knows the answer is you. Before you take the plunge, think about the amount of money you need just to survive. Sometimes, finding work when you’re self employed isn’t easy. A slow work week could really change your whole career outlook, especially when you’re just starting out.

How much do you spend? Add up the cost of monthly bills (an average) and factor in grocery and gas money (these numbers are always higher than what you suspect). The number you’re left with is how much you need to make. …Daunting, isn’t it?

And yes, self employment is scary! You’ll know you’re ready to start building toward your self employment goals when you start running out of time. When you can’t get your regular job and your self employment jobs done at the same time, it’s time to start evaluating. You may be ready to take self-employment full time.

It’s always a good idea to have money saved up for self employment, however. Sometimes, work is slow, and jobs don’t come pouring in. You want to have a back up. If you don’t have any money put away, then you probably aren’t ready for self employment. Remember, you don’t just have to worry about monthly bills – you also have to cover the cost of your own health insurance. This is an expense that prevents many from taking the self employment plunge.

Know what sort of budget you’re working with, and you’ll have a much better idea of when to start self employment as a career. Sometimes, the best thing you can do for yourself is not take the plunge. When you start full-time self employment before you’re truly ready, financial burdens can become too big of a strain. Have some support, have some backup, and have a real idea of how much your life actually costs.

Then, you’ll know if you are ready for self employment.