What Are the Benefits of Being An Independent Contractor?

Many of those I talk to about self-employment are afraid to take the plunge because they’re afraid of losing their benefits. What always comes as a surprise to them is that the benefits of self-employment are far greater.
Benefits of self-employment
Probably the most quoted reason for being self-employed is that you get to be your own boss. This benefit expresses itself in a lot of different ways. For some, it means choosing the hours that they work. This is true even if those hours end up being exactly the same as they would in an ordinary job. There’s something particularly rewarding about having the choice. And that’s not all. The flexibility this gives enables you to fit the work into your lifestyle, rather than trying to fit your lifestyle into your work.
For example, when was the last time you got to pick up your kids from school during the work day without using your vacation time to do it? Or, how often have you been able to have an afternoon kip when you wanted it?
A second benefit is that you’re free to use whatever methods suit you. Again, you may end up using what you would if you were employed, but you don’t have to. For example, you can eat and drink in front of your computer. How many places forbid you from doing that!
You can take personal calls or surf the internet. There’s no one there to tell you that you can’t.
If you’re particularly innovative, you can just change your work methods whenever you wish. There’s no tedious employee suggestion program with its forms, etc., to go through. For example, if you want to write with a Sharpie on a yellow legal pad, with your bare feet on your desk, then you can.
A third benefit is that financially, you’re better off. Most people seem to misunderstand this because they see only their tax rate, rather than their taxable income. The tax rate is the percentage of your income after deductions that you pay; but the expenses that you’re allowed to deduct are quite different if you’re self-employed. That means that even though the rate is higher, the taxable amount is usually smaller. You can be sure that if this wasn’t the case, the national tax offices wouldn’t make it so difficult for people to declare themselves as self-employed.
The fourth category of benefits can be rolled into one. This includes things such as health insurance. Rather than being forced to accept what your company offers, you can choose almost any of them that you want. After all, what does your company know about the health needs of you and your family?

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