Let’s talk about self-employment and why I love working for myself. Many clients with salaries often ask, “How do you do it without benefits?” or “How do you manage without a pension or regular paychecks?” Running a business can seem scary!
My answer? It doesn’t have to be scary. It’s all about a mindset shift.
Living on the peninsula in Halifax, Canada, can be pricey, and paying out of pocket for therapy and other services can add up quickly. To live on the peninsula, an income of $65,000 is needed—at a minimum. If there are extra expenses on top of that, it can be very tight, and self-employment may not be the best route unless you’re making enough money. That said, starting off as a side hustle can be a great option! It allows you to explore your entrepreneurial passions while keeping the security of a regular paycheck and benefits. Plus, there are plenty of advantages to maintaining a side hustle, such as building your brand and gaining valuable experience without the full pressure of relying on it as your sole income source.
Having a solid financial plan is essential. One of the programs I pay into is Self-Employmend EI and I claim all my medical expenses on my taxes at the end of the year—just like I encourage clients to do with my counselling therapy services. If you’re curious about tax claims and how medical expenses can be eligible for reimbursement, your annual expenses (e.g., counselling, physiotherapy, podiatry, etc.) must add up to:
- 3% of your net income or
- $2,635.
For a list of eligible medical expenses, check out this link: Eligible Medical Expenses (and speak to an accountant!). You can also pay into your own benefit plan without needing to be employed—most major insurance companies offer individual benefit plans (though they can be more expensive).
I also have an emergency fund and a savings plan, thanks to a fantastic fee-based financial advising organization (owned and staffed by amazing women) who specialize in solopreneurs and helped me manage income a little better – shoutout to New School Finance! With their help, I can plan vacations without feeling guilty or burning out—just me and a good book.
While this isn’t the case for me, many entrepreneurs rely on their partners or family for benefits & financial stability, which can be a practical solution. So, here are some pros and cons of running my own practice and being self-employed:
Pros:
- Flexibility: I can CHOOSE my hours and dedicate time to non-clinical work, such as admin tasks, networking and volunteering.
- Freedom: I get to choose my projects and clients, which is empowering.
- Autonomy: I can make decisions without consulting anyone else.
- Collaboration: I can also consult others if I want! I work with a team through contract opportunities and have various peer support groups for counsellors, so I’m not entirely on my own.
- Varied Income: By running my own practice and working as a contractor with different group practices and organizations, I diversify my income sources. This approach helps create a safety net, so I’m not relying solely on one stream to make ends meet.
Cons:
- Unpredictability: Income can vary significantly from month to month. The point is to look at overall annual income – predictability of patterns started to form after 1-2 years for me.
- Less Security: It’s crucial to have a solid financial strategy in place (as mentioned above).
- Isolation: Working alone can be lonely, so I make an effort to connect with others regularly- which helps!
- No Benefits: This can be a concern if you have health issues, but there are alternatives available (as noted above with individual benefit plans).
Despite the challenges and the steep learning curve at the beginning, the freedom and flexibility of self-employment make it a DEEPLY rewarding path. Embracing this lifestyle has shown me that with the right mindset and tolerance for some risk, the possibilities are pretty cool. It has truly turned out to be a gift for both life and career satisfaction.
What are your thoughts on entrepreneurship?
If you’re considering entrepreneurship, I offer professional consulting and career counselling. I can help you unpack how your beliefs, messaging, values, personality and interests fit holistically into a life path that is satisfying and feels good.
Book here for a free consultation!