Becoming your own boss is a dream for many people, and for good reason. With the growth of the gig economy, people are finding more reasons than ever to make the switch, leaving their regular 9-5 jobs, in order to have better control of their lives. While this can be an exhilarating experience for some, it can also be an intimidating journey for others. After all, it is a risky endeavor. Being your own boss certainly comes with its share of benefits, allowing you to take control and do things your way, but it also comes with its own set of drawbacks. It requires persistence, ambition, and drive and not everyone has what it takes to run a business.

To help you better understand, here are some advantages and disadvantages of being your own boss in the gig economy.

Advantages:

• Flexibility-
  As your own boss, you can shape your work schedule according to your lifestyle. You can choose the number of hours you work and efficiently manage other commitments, such as attending classes or taking care of your children. This provides you with the chance to achieve a work-life balance that suits you best. You have the flexibility to work according to your own pace and in a manner that suits you best.
• Independence-
  Along with flexibility, being your own boss provides you with the freedom to work on your own schedule and in your preferred environment – be it out and about or within the confines of your home office. You are not confined to a traditional, rigid office setup where you are under constant scrutiny from a manager. Furthermore, depending on the type of work you do, you may have the luxury of avoiding the daily commute entirely, saving you valuable time and energy.
• Rates-
  Assuming the role of a boss comes with the advantage of having the ability to establish your own rates and, in turn, potentially earn a higher income than salaried workers. The amount you can make is subject to your industry and the prevailing market rates.
• Variety of work-
  In the gig economy, the nature of work is dynamic and diverse. As the boss, you have the privilege of taking on various projects or tasks for multiple clients each week. This constant variety provides a refreshing and stimulating work experience, ensuring that no two weeks are ever the same.

Disadvantages:

• Benefits-
  You won’t be eligible to receive the benefits that typical workplace employees enjoy, like health insurance or retirement contributions. This means you’ll have to explore your own options for health insurance programs and create your own personal retirement plan. The Association of Entrepreneurship, AFE, has various plans that will provide these benefits to you. If you aren’t already a member, then consider becoming one. Join AFE
• Taxes-
  As a business owner, filing taxes accurately and on time is crucial. You must meet all tax obligations and keep accurate records to avoid penalties or legal issues. It is highly recommended that you save between 20-30% of your earnings for taxes. Alternatively, you may choose to hire a professional accountant to manage your taxes, but this can be a costly option.
• Uncertain income-
  Self-employment comes with the unpredictability of income, which makes budgeting and managing money a bit challenging. The nature of the work makes it difficult to rely on a consistent paycheck each month. As a result, it can be pretty stressful, particularly for individuals with numerous ongoing expenses.