The Stress of (Financial) Uncertainty
Hello All,
Many years ago, as many of you know, I relinquished my stable job as an employee in the pursuit of greater career satisfaction. I did this somewhat impulsively and perhaps wasn't adequately prepared for the changes, the most difficult of which was the feeling of uncertainty.
I think for many of us, the uncertainty that comes from a transition of any kind is even more stressful than a negative outcome. Uncertainty taps into a deeper anxiety—the fear of the unknown. Our brains are wired to seek certainty and control and when that is missing, we feel powerless because there’s no clear path forward. We tend to overanalyze and be hampered by indecision.
There is a significant subset of the self help industry that revolves around managing uncertainty, that at its core targets fear. One must develop coping mechanisms some of which include focusing on what you can control (be more stoic), becoming more self aware and reframing the situation as an opportunity for growth.
In the context of transitioning to self-employment, whether you’re just starting out or have been doing it for a while, one of the biggest sources of uncertainty is financial. Unlike employees who receive a regular paycheck, business owners and freelancers need to be keenly aware of where their income is coming from, what their financial and tax obligations are, and how to manage their cash flow. Many promising ventures fail simply because they run out of money.
In my blog post this week, I explore the financial uncertainty that comes with transitioning from employee to self-employment (though the advice also applies to current business owners/freelancers/solopreneurs etc). It provides a roadmap to managing the financial side of self-employment so that you help to at least mitigate the uncertainty and feel a bit more confident.
Blog Post
Financial Guide for Transitioning from Employee to Self Employment
Deciding to transition from being an employee to self-employed business owner/freelancer/independent contractor. can be a significant life event. It can certainly be exciting as you relish the thought of greater freedom, flexibility and the ability to exercise your creativity in ways that you cannot when you are an employee. However, there is also a great deal of uncertainty, both professionally and financially. And while you cannot control the outcome, understanding where the uncertainty might come from will help you be much better prepared.
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