Common Errors Made By Self-Employed People  

Wouldn’t self-employment be great?

Being self-employed is a dream for many people. And while working for yourself can be a great thing, making the transition from working for someone else to self-employment is often fraught with mistakes. Consider these common errors that self-employed people make, as well as how to correct them.

Failing to Budget Your Income

When you’re self-employed, it is easy to think of every penny that you make as profit. However, if you do this, you may quickly fail to budget appropriately. When you’re self-employed, you’re responsible for all overhead costs, like the costs of your office, computer, electricity and more. What’s more, you are also responsible for paying your own self-employment taxes, a duty which must be fulfilled quarterly.

Letting a Client Dictate What Happens

When you’re self-employed, you’re the boss. This means that you get the luxury and privilege of setting your own prices and determining your own rates. Don’t make the mistakes of letting a client tell you how much they will pay and then going with that.

Forgetting to Budget Your Time

When you start working as a freelancer or a self-employed person, it can be tempting to say ‘yes’ to every project that comes your way. However, saying yes to too many things can result in you wearing yourself too thin; know when to say no.

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