Building the Perks of Employment into Self-Employment

self-employed perks
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Self-employment is not for everyone. It is varied, and challenging, and requires organisation and personal motivation. The responsibilities can be overwhelming at first, but with a sound approach to what to expect, you can plan for the worst-case scenario, and give yourself less worry over your personal finances.  

Give yourself the perks an employee would have  

Plan for sick pay 

Statutory sick pay is non-existent for the self-employed. Without anything in place, there is no financial safeguard.   

You can lock in a financial safety net with income protection insurance. With this type of policy, insurers typically pay 50% and upwards of your pre-tax profits. The premiums are based on health and as with any personal insurance policy, be it a health plan, or life insurance policy, the healthier you are, the more affordable the premiums. If you have medical conditions, the premiums may be hard to justify. If that is the case, an idea is to get quotes for how much the insurer would require, then set up a standing order for something in that region to go into a savings account. Insure yourself with a standing order.  

Integrate holidays into your business annual planning 

An ideal practice to get into is blocking out the dates you plan to take away from work at the start of the year. Whatever time you set aside to focus on prioritising your business goals for the year ahead, block time for holidays.  

For simpler cash management, time block them by a week or a fortnight at a time. What tends to happen with self-employed people who do not plan for holidays, is they wind up taking only a couple of days here and there. If they are off for a week or longer, the stress of income loss can ruin what should be a break away.  

By blocking the time in advance, it sets the ground to go forward, knowing you have a break coming up to look forward to, and you can plan around it financially by squirrelling away some of the income each month. By the time the holiday rolls around, you’ll have enough to cover the expected outgoings, and hopefully have extra reserves for a luxury or two. 

Manage your time better 

Just like you can schedule time in your calendar for holidays, you should be planning regular downtime every working day in your calendar.  

Without time off, burnout will be inevitable. If you follow other successful business owners on social media, you may wonder how they manage to fit time into their day for going to the gym, or any other leisure activity – in the middle of a work day! This is unplugging time. The self-employed work irregular hours. Admin could be being done at the 11th hour. Weekends spent on marketing.  

If you find yourself mentally drained by 2 pm, block 1:30 pm to 2:30 pm out on your calendar to go for a run, walk, or another exercise that will focus your mind on something else. That same technique can be just effective for employees working from home. Time management is a skill everyone can benefit from. 

 

 

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