Is self-employment right for me?

Self-employment is an option that many Australians are making the most of. Not only does it offer increased flexibility, but also the option to steer your career in the direction you want.

However, as any self-employed person will tell you, with the advantages comes a number of challenges that need to be faced on a regular basis. It’s not for everyone, which is why you will need to weigh up your options before deciding on the best course of action.

Working hours

A benefit of self-employment is being able to choose your own working hours. There’s also the chance to readdress your work-life balance as you’ll be working largely to your own schedule, rather than someone else’s.

Being self-employed involved a certain level of discipline. Nobody else is going to complete your tasks for you or step in when the going gets tough!

Job-related benefits

As soon as you become self-employed, you’ll no longer be entitled to holiday pay or superannuation payments from your employer. Any time you take off will be at your own expense, so think carefully before deciding to take that two-week holiday or any other extended period of leave.

Securing finance

Lenders often view self-employed people as a higher risk than those in regular jobs, which is why you will find that you need to apply for low doc loans.

These are designed for people who are self-employed and come with their unique set of criteria. If you’re considering getting onto the property ladder anytime soon, this is something you will need to think carefully about.

Fewer outgoings

Having said that, you could find your finances are in better condition as a result of being self-employed. You will know exactly how much effort it takes to earn your money, which could help keep a lid on spending.

There’s also the fact you can eliminate commuting costs – and of course the temptation to buy lunch or a coffee on your way into work!