Can Single People Afford to be Self-Employed?
Did you all have a good Memorial Day and long weekend? I sure did! I ended up taking Friday night-Monday night off and it was nice to spend some time with my family and friends without being tied to my computer or smart phone. Of course that did have some consequences, like being extra busy in the next couple of days catching up. #thejoysofselfemployment 🙂
As you all know, I’m working hard to build up my online income so I can quit my full-time job before the end of the year. I’ve had some serious growing pains lately as my business has been exploding and taking up more and more time outside of my full-time job. This makes it difficult to get other things I want and need to do done. Thus, I took on my first staff writer to help this site stay active, and to give you readers a fresh perspective on some things.
While my income continues to grow, I’ve put a lot of thought into how and when to quit my full-time job. One thing that keeps holding me back is fear.
I have a fear of the unknown and a fear that I’ll be without stability since I’ll no longer be getting paid every two weeks like clock work. It can be hard to leave that steady paycheck behind, after all I’ve been getting one every 14 days since I was 15 years old.
Taking the plunge into self-employment is scary and exciting at the same time. I can’t help but to think that because I’m single I’m actually at a disadvantage when compared to some others in the PF community who are self-employed.
Why Being Single is a Disadvantage when Pursuing Self-Employment
Being single can have some great advantages, but it can also have some drawbacks too. In this case, I think being single is holding me back from quitting my full-time job as quickly as I would’ve if I had another (steady) income to fall back on. If I were married and I quit my job I’d at least have my husband’s steady income to count on every two weeks if things dried up in the world of freelancing.
One of the biggest benefits of having a steady, reliable, every 2 weeks paycheck is that it makes budgeting easy and you always know when more money will be dumped into your account. With freelancing you don’t have that.
The earning potential of freelancing is often much higher than what you can earn at your full-time job and I know that. The sky, and your work ethic, is the limit on how much you can earn when you are self-employed, but that also means when you take time off you aren’t getting paid. There’s no more paid vacation days or sick days, no more 401(k) match, and no more employer-sponsored health insurance.
One of the great things I have on my side right now though is time. Because I’m just 24 years old, I don’t have to worry about finding health insurance of my own until I turn 26. This gives me almost 2 more years to keep increasing my income before I have to find my own, very expensive, health insurance plan. By that time I definitely won’t be working at a job with an employer-sponsored plan, so I’ll have to pay that out-of-pocket. (This is about the only good thing about Obamacare – I can be on my parents’ health insurance until age 26.)
This post isn’t meant to be a griping, complaining session. It’s just a way for me to work out of some of the pros and cons of pursuing self-employment as a single person. Some of the issues I’ll be facing in the coming months will be scary, and others will be exciting. I can’t wait to share it all with you after I quit my job later this year!
Are you pursuing full-time self-employment? Are you single? Do think there are other disadvantages to being a self-employed single person that I forgot to mention?
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