Societies reward those who are self employed in a number of different ways, and there are many reasons why they tend to benefit more than employees. Those who choose to become self employed are often individuals who have the entrepreneurial mindset, and this means that they are much more likely to build a small, medium, or large business in which they will employ a large number of people, meaning they will create jobs for the local economy. Therefore, those who are self employed also help stimulate the economy and provide growth. These individuals also assume more risk and responsibility by being their own bosses and as a result society rewards them with higher salaries and more flexibility.
While self employed people don't have the tax advantages that are associated with corporations, they do have an enormous advantage when compared to employees. Social security can largely be avoided, and this means that these people save enormous amounts of money over the course of their lives. Self employed people also have more flexibility when it comes to the issue of taxes, and again, this gives them a huge advantage over those who work for others. In the last chapter, I demonstrated mathematically how reducing your taxes can allow you to save immense amounts of money over a long period of time.
This is why it is critical to control your taxes, as opposed to allowing your taxes to control you. Self employed people also have greater flexibility when it comes to the hours they work. Unlike the typical employee, who must get up each day and be to work at a specific time, the self employed individual is capable of working at their own pace and schedule. This has a number of enormous advantages, many of which aren't obvious at first. Because the self employed person controls their own hours, they have a better quality of life.
Most people spend 40 hours per week working for someone else, and in the meantime, they miss out on the ability to enjoy life. A self employed person has so much flexibility that they're able to travel and enjoy many activities that are difficult or even impossible for employees to enjoy. For instance, a person who is self employed can travel when they want; they don't have to put in for vacation time. In addition to this, self employed people have more time and energy to study and pick up skills which can allow them to make even more money in their areas of expertise.
The employee often doesn't have the time or energy to do these things, and their jobs become their lives. In almost all cases, self employed people enjoy the work they do, because it takes time, effort, and skill in order to work in the fields they make money in. In contrast, each day, tens of millions of employees get up and go to jobs they absolutely hate, simply because “they have bills to pay.” If you hate your job, it is going to be next to impossible for you to excel in it. To become a true success, you must go into a field that you like.
This is a critical component of self employment that cannot be emphasized enough. Those who choose to work in fields they don't like will never achieve noteworthy success, and even if they do make lots of money, they will be miserable. Additionally, it is unlikely that such individuals will truly become rich, for those who become rich via self employment are often those who are passionate about their areas of expertise.
What this means is that you must be very cautious when it comes to the area in which you choose to become self employed in. Never, under any circumstances, go into an area that you don't like, and never become self employed in a trade that doesn't match your skill set. In our opinion, this is career suicide. Every one in the world has skills, and it is crucial to go into a field where these skills are maximized.