July 31st, 2012
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Warning: Working for Someone Else Can Damage Your Wealth
Did you know that by working for someone else, you are automatically putting limits on what you can earn? It’s true – just ask anyone who is climbing the career ladder. They can only get as far as their skills, knowledge and popularity will get them. If their boss does not see them as experienced or worthy enough to move into a higher paid position, they will not attain it.
This is true of part time workers as well. In fact in many ways, part time workers can be even more inhibited by what they can achieve. How many South Africans do you know who are in good careers and good positions and who only work part time hours? They are rare, aren’t they?
Can you earn less by working for someone else?
In truth, yes, you can. This logically means you may be able to work more by becoming an independent contractor. This comes with several advantages, most notably the fact that you can plan your own working hours. This means you can work part time if you wish, but if something crops up unexpectedly you can adjust your hours to suit.
Are there any other advantages to being an independent contractor instead of working part time in a traditional job?
Yes there are plenty of them. For example you may be able to find part time work with more than one company. This means you might work 4 hours a week for one employer and perhaps 6 hours a week with another one.
This is good because if you have a skill you can market in this way, going it alone could be a better option and allow you to make more money. In addition to this you can work more hours when you are in need of more income, and drop back down to fewer hours when you are settled and you need more spare time.
What about disadvantages?
When you are an independent contractor (of any kind in any career) you will be solely responsible for your business. This means you must become a registered provisional taxpayer. You will have to do all the jobs a business owner would normally do, so it’s not the same as working a few hours in an employed position and then coming home and leaving the work to someone else. You have to consider the pros and cons of working in this way before making the decision on whether it is right for you.
However you do get a lot more freedom in other ways, and since you will set the rates you will work for, you can have more control over your income. You’ll stand a better chance of earning more over time instead of staying in the same job for years without really doing any better as you go.
So think about what type of part time work you want to do before making the leap. Do you want to work for someone else or would you rather be working solely for YOU?
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