The Life of the Self-Employed: The Prosperity and the Hardships

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A person’s job is his livelihood; he does it with the intention of growth and prosperity in life. The hours spent at his work, despite being rather gruelling, worth it when you get the paycheque at the end of every month.

All the stress, anxiety and sometimes even hate are forgotten because that cheque made up for it until the next one comes.

If you can compensate for your needs and wants with the monthly payment, you are one of the lucky ones. The rest of us are not so fortunate.

The doctors, engineers and bankers are who fall in the first category. The latter includes the likes of self-employed and freelancers.

Let us examine how they go by with their lives.

The Life of Self-Employed

Self-employed people as the name suggests are the ones who work for themselves. These primarily include people who are;

Business owners;

And freelancers.

The business owner runs his establishment on his rules and his perceptions. No one is above him in the hierarchy, his clients maybe, but that is a different kind of hierarchy.

The freelancer is someone who works for his self again. However, he is not the owner of a business. He or she provides their services to other companies as and when they may need it. Freelancers usually work from their home.

The perks of being self-employed are many;

You can wake up at any time you want to since you do not have a boss to report to.

You can declare a holiday as and when you please.

You earn as much as you work, the more productive you are, the more likely you are to earn substantially.

What you want to deliver on is all your decision. If you feel that a client is asking too much from you, that is bordering the fine line between ethical and unethical. You can say no.

All of the benefits that the self-employed have come down to two things,

Liberty and Autonomy

With these two in their corner, the self-employed are much more relaxed and happier than the employees permanently affiliated to organisations.

If you don’t believe me, look around you. You must have friends who are both self-employed and company workers. There would be a stark difference between their attitudes towards life and other people.

One of them would seem too cheerful to be accurate, while the other would be sullen about his work. Now, you find out, who is who?

The Struggles They Face

The life of the self-employed is indeed a great life to have. However, there is one aspect that they lack.

If you have a freelancer friend, you might have an idea of what I am talking about. This aspect is related to money, not earning it, but spending it. Strange, right?  

Let me explain.

Assuming you are a part of an organisation. It would mean that you will get the same paycheque every month. So, when you decide to take on a loan, the only thing that a lender would see is your paycheque and possibly your bank statement.

However, for the freelancers, getting a loan is trickier than this, even for a small amount like 5000 Euros; they have met a lot more obligations.

For them, a bank statement only makes the bank know about their expenses. The lender would need proof of income.

For the same, the freelancer needs to accumulate five different documents.

Personal Tax Computation Statement, you can quickly get it from the HRMC;

Self-assessment Tax Returns;

Summary of Yearly Taxes;

And the bank account statement along with your accountant’s letter.

Add all the other loan obligations on top of this. You won’t even want a loan by the end of it. However, there is a solution.

kredit selbständige ohne einkommensnachweis is one such loan instrument in Germany that will allow all the business owners and freelancers to get loan stress free.

Apart from this, renting or leasing a flat is a problem they have a face. No landlord gives them a place to rent without properly scrutinising every tiny detail in their bank statement. Some refuse even after that.

Winding Up

I would want to end by mentioning the reasoning of the lenders and the landlords. The problems that the freelancers face are not because people are biased against, not in the least.

The obligations are more because of the fluctuations in their monthly income levels.

A landlord may give the freelancer a place to rent without seeing his income statement, what if a few months later, he stops paying rent because he stopped earning. Who would be at a loss then?

A lender may give them kurzfristige kredite based upon a few months bank statement, but what if the freelancer stopped earning, the loan would become a bad debt. Who would be at a loss then?

The obligations are more for the self-employed only because they are high risk, not because of any prejudice. Understanding this may make them less resentful of the system.

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