Find the best financial tools available today

Self-Employed vs. Full-Time Employment: Which Is Better?

When you choose to work, there are two main paths you can go down. The first is to find a job at a company and become a full-time employee. You get an annual wage that’s paid monthly. Or, you could choose to be self-employed. Here, you go out looking for different contracts and get paid as you work. You’re in charge of setting the fees, and people pay you for the service you provide.

Today, I want to explore which of these options is best for your personal finances. Will you be in a more stable financial position as a full-time employee, or does being self-employed come with more benefits? To figure this out, we need an in-depth look at both!

Full-Time Employment

I think the best way to discuss things is to look at the pros and cons of either option. As we do this, you’ll quickly see some significant advantages and disadvantages come from being in full-time employment.

Pro: Secured Monthly Income

The main benefit is that you know you’re getting paid every month. Even if you’re struggling to pay for things, there’s the comfort blanket of knowing your next paycheck is coming in soon. It also makes it much easier to manage your money as well.

Con: You’re Not in Control

Arguably the biggest disadvantage is that you aren’t in control of things when you’re a full-time employee at a company. Someone is standing over you telling you what to do, and this goes for the money you earn as well. They decide your wage, and they determine if you get pay cuts or rises. It can be easy to reach a barrier in your career where you don’t earn more than a set amount.

Pro: Easier to Apply for Credit

If you need to get a loan of some kind, then life is easier when you’re in full-time employment. By having this stable source of income, lenders deem you as more trustworthy. You’re less risk to them, which means they’re more likely to grant your application and lend you the credit you need.

Con: Lots of Dodgy Employers out There

The world of full-time employment is riddled with legal issues and lawbreaking. Employers do whatever they can to minimize overhead costs, and this usually means shafting their employees in some way or another. As you can see on the Turley & Mara Law Firm website, some employers will steal your wages by paying you less than the minimum wage, denying holiday pay, or claiming you worked fewer hours than you actually did. There are other issues as well, such as working overtime and not being paid, getting treated poorly, and having to work in uncomfortable environments with people you hate.


Being self-employed is pretty unique as you can do almost anything you want. One self-employed person can have an entirely different approach to their career than another. But, what are the main pros and cons?

Pro: Can Earn More Money

With self-employment, there are no restrictions on how much you earn. After all, you set prices for your clients. Therefore, if things go well, you could make a lot more money than someone doing the same job as a full-time employee.

Con: Work Isn’t Guaranteed

The biggest downside of self-employment is that work isn’t always guaranteed. Of course, you can sometimes get contracts with clients that last for years. But, for a lot of self-employed people, there’s no telling when your next job will be. You could go weeks, maybe even months, before you get paid again.

Pro: Can Claim Tax Deductions

If you’re a full-time employee, then you pay income tax every year. This is worked out automatically and comes out of your paycheque each month. When you’re self-employed, you have to file your own tax return, but you can claim deductions on this. Anything that you use to conduct your work can be claimed as a business expense. This includes your internet, phone bill, computer, and so on. Therefore, you can legally pay less tax, meaning you make more money every year!

Con: Harder to Apply for Credit

Things aren’t as bad as they used to be, but applying for credit is still more difficult for a self-employed person. As is renting out properties – landlords prefer people who have secure jobs.

The Conclusion

After looking at both options, there are two conclusions to make. Firstly, if you want financial security, then full-time employment is much better for you. But, if you want to maximize your income and make as much money as possible, then self-employment is the best option.

Latest Comments
  1. Jon
    • Richard Parker
      • Jon
        • Richard Parker
          • Jon
          • Abbey
          • Jon
          • Richard Parker

Leave a Reply

NOTE: all comments are moderated. it might take a few days for your comment to be approved. Thnx for your understanding

Your email address will not be published. Required fields are marked *