Being your own boss might seem glamorous at first glance, but let’s break it down. Take your cousin, for example, who left his cushy accounting job to launch his own business. Now, he can sleep in, work from home in his pajamas, and spend a lot of time on Facebook. His business is thriving, and he’s taking luxury vacations, buying a stunning house, and planning an early retirement. No wonder you’re a bit envious.
Back in 2014, 27% of millennials chose self-employment, making it the generation with the highest rate of entrepreneurs. This trend has caught on with other age groups too, and you can easily find blogs, podcasts, and books dedicated to the topic.
While being an entrepreneur can be fulfilling, it also brings a lot of stress. You’re the one responsible for finding clients and getting paid, and you miss out on many financial perks that come with a traditional job.
Thinking about making the switch? Here are eight reasons why self-employment might not be as great as it seems:
1. **Retirement**: Your cousin might be saving smartly for early retirement, but traditional jobs also offer retirement benefits. Many employers match a portion of your retirement contributions, making saving easier.
2. **Paid Leave**: Sure, your cousin takes amazing vacations, but he probably works a bit every day during those trips. Most American employers (over 75%) offer paid vacations and holidays, plus you might get paid sick leave.
3. **Medical Events**: If you’re self-employed and face a serious medical issue, your income can disappear. Larger companies, thanks to the Family Medical Leave Act (FMLA), provide up to 12 weeks off annually for serious health issues.
4. **Insurance**: Health insurance costs have been skyrocketing in the U.S. Being employed can save you hundreds of dollars a year on insurance premiums.
5. **Discounts**: Employees often get discounted or free goods and services, a perk your entrepreneurial cousin doesn’t enjoy.
6. **Training and Education**: Many employers pay for the necessary continuing education or offer tuition reimbursement. Over half of employers provide undergraduate tuition assistance.
7. **Extra Benefits**: Employers might cover work-related expenses, like a mobile phone for business calls or travel expenses for work trips.
8. **Convenience Benefits**: Some companies offer perks to improve job satisfaction, like concierge services or catered lunches, though these are less common.
Working for yourself can be exciting and potentially lucrative, but it also comes with significant stress and no guaranteed financial success. Job benefits are a huge part of your earnings. If you’re not happy with your current benefits, it might be worth looking for a new job.
So, what impressive benefits does your employer provide? Is self-employment worth the risk, or do you prefer the security that comes with traditional job benefits?