Self-employment might look less tempting when you dig a little deeper. Take your cousin, for example, who left a stable, well-paying job at an accounting firm to start his own business. He enjoys the freedom of waking up whenever he wants, works from home in his pajamas, and seems to spend all day on Facebook. Despite this, his business is thriving. It’s understandable to feel envious as you see him take lavish vacations, buy a stunning house, and even plan for an early retirement.
In 2014, much like your cousin, 27% of millennials chose to work for themselves—making this generation the largest in the self-employment sector. This surge in entrepreneurship has caught the attention of people from other generations too. There’s no shortage of blogs, podcasts, and books talking about self-employment.
While being your own boss can be rewarding, it definitely comes with its own set of challenges. You’re solely responsible for attracting clients and getting paid, and you don’t get the financial perks that come with traditional employment.
If you’re considering making the jump to self-employment, here are eight situations where it might not be the best idea:
1. **Retirement**
Your cousin might be saving smartly for an early retirement, but having a steady job doesn’t mean you can’t retire comfortably. Most employers offer some retirement plans, and about 70% of them match a portion of your contributions.
2. **Paid Leave**
Even though your cousin takes amazing vacations, he probably puts in a few hours of work each day before enjoying his time off. Over 75% of American employers provide paid vacations and holidays, plus you might get paid sick leave.
3. **Medical Issues**
If you face serious medical problems, being self-employed can mean your income takes a hit. But if you work for a large company, the Family Medical Leave Act (FMLA) can protect you, giving you up to 12 weeks off each year for serious health issues.
4. **Insurance**
Medical care costs a lot, and insurance premiums have risen significantly in the U.S. Being employed can save you hundreds of dollars each year on premiums.
5. **Discounts**
As an employee, you might get discounted or even free products and services, a perk your self-employed cousin doesn’t enjoy.
6. **Training and Education**
Many employers cover the costs of necessary continuing education or offer tuition reimbursement. Over 50% of employers provide undergraduate tuition reimbursement.
7. **Extra Benefits**
Employers might cover expenses like a mobile phone for work calls or travel costs for business trips.
8. **Convenience Benefits**
To keep you happy and loyal, some companies offer extra conveniences, which can make your job more enjoyable.
Working for yourself has its perks—unlimited earning potential and personal satisfaction. But it also comes with stress and no guaranteed financial success. Job benefits make up a massive part of your total compensation. If you’re not happy with your current benefits, it might be worth looking for a new job. Perks like concierge services or catered lunches can be appealing, though they’re rare.
Think about the benefits your employer provides. Is self-employment worth it, or do the perks of traditional employment suit you better?