The 3 big mistakes self-employed people make

Image credit: Samson Katt

Being self-employed is most definitely a way to have more freedom in your working life, but if you are looking to make the leap, or you are trying to get all of your ducks in a row, there are many mistakes people make. Granted, you can have the ability to work smart rather than hard, have the right software in place, and think that you've got everything, but you will certainly learn from the many mistakes that you make, but here are some of the big ones that you have to be prepared for. 

Overspending on Things You Think You Need
This is especially true if you are running a business. You may think that you are better off investing in more things than less, but the reality is you've got to find the best tools that work for you by going through a few months of being self-employed so you can learn from some of your mistakes. One of the more common problems is with regards to payment customers, invoicing, and generally the financial components. It's important to find all-in-one tools that can help. For example, a company like Payanywhere provides a comprehensive platform for payments, invoicing, and inventory management, but remember that you don't need to overcomplicate things. If you overcomplicate things, you add more steps to every process, and this means that you will eventually lose the battle of having any form of work-life balance. 

Underestimating Being Self-Employed
If you are looking to become self-employed, you may think that it is easier because you don't have to clock in at a certain time, you don't have to commute, and so on. But being self-employed is not easier than working a job. The fact is that you have to take responsibility for so much more than you would if you were being employed by someone. This means you've got to have a multitude of research skills, business skills, as well as financial skills under your belt. Because you've got to find so many things that will cover your back like self-employed insurance, learning how to save for retirement, while also making sure that you do have that balance in life. Many self-employed people talk about the fact that they don't know how to switch off. This is one of the best things that you can learn how to do. 

Not Prioritising Your Health
The trap many people fall into is chasing the money. They'll have a good month, and this will be followed up by a bad month. After a while, people think that it's better to work more in order to maintain a certain lifestyle. However, doing this is not good for your health, and it's not good for you in the long run. You've got to have a more relaxed approach to life certainly, but you also need to make sure that you aren't giving in to stress. It's important to think of some stress management techniques, but also, no matter how much you earn, putting a specific amount aside each month will give you that buffer if you have a fallow period.

These are some of the biggest mistakes, and if you are looking to jump into being self-employed, the best thing you can do is be prepared.