Employed vs Self Employed

There is so much to be said about being self employed. You practically "own" your time. You can choose the hours that you spend working and the hours you spend on leisure. And, how much and how little income depends on you.

There are disadvantages, however. When you're self employed, you have a certain amount of overhead expenses every month. And you're never sure if you're going to earn or lose money this time around -- meaning it's quite seasonal, therefore sometimes budgeting is not very easy. And vacations mean that you don't earn during that time -- in fact, you spend! Unless, of course, you have a business that is already running even without you to personally supervise things.

For employees, the bright side of things is that there is a regular amount of money that you get every month. This makes it easy to budget since it's regular like clockwork. Your employer is mandated by law to pay for your SSS and Philhealth contributions (well, here in the Philippines, at least). You have paid vacation, maternity and sick leaves. Some employers, especially the big corporations, also offer Incentive Programs for employees who reach a certain level of achievement, which translate into either Rewards in cash or in gifts. You also get retirement pay when you reach the mandatory age of 65 years old. If they retrench you before the mandatory retirement age for reasons other than breaking of their rules, you may also get an early retirement package which will allow you to live on it while looking for another job. During special events like Christmas parties, Employee Recognition by the employers, with the corresponding gifts and plaques, are usually announced.

Of course, the downside of being an employee is that you do not have your own time except during the days that you do not have work. And, if you did not plan carefully for your retirement, you might not have enough to live on when you no longer can work.

Each has its own advantages and disadvantages. Choose the right one that will best suit your situation.