There are many perks of being self-employed, but it’s not always easy forging a successful career as a freelancer or running your own business. A 2023 study by Simply Business revealed that over 55% of small business owners in the UK had experienced poor mental health with increasing stress levels within the previous 12 months. There is no miracle cure for work-related stress or universal guide to smashing self-employment, but these simple steps can help.
Take care of your finances
Money worries are among the most common causes of stress and anxiety among UK adults. In the last few years, stress levels have risen in line with higher living costs and inflation rates. According to the Financial Conduct Authority, more than 7 million adults are struggling to cover living expenses. Running a business or working for yourself carries an extra financial burden. When you’re employed, you can enjoy peace of mind, safe in the knowledge that your wages will land in your account on a set date each month. If you’re self-employed, you may earn more, but you could also have a less secure income. Some months you may earn a lot more than others. You may also be anxious about the possibility of losing clients or struggling to make ends meet once a specific project or job finishes.
Managing your money is crucial if you work for yourself. It can be time-consuming and stressful to deal with invoices, accounts and balance sheets, but there are lots of ways to simplify accounting and take control of your business finances. One of the best ways to take hold of your finances is to start budgeting. Draw up a comprehensive budget and use financial data and detailed reports to help you monitor spending, track transactions and decide how to spend or invest your money. Issue customers and clients with clear payment instructions and deadlines to lower the risk of cash flow issues and take advantage of modern accounting tools, including software and apps. You can automate tasks to save time and energy, use digital tools to keep track of your income and outgoings and utilise software to help you compile tax returns and calculate payments and expenses.
One of the most important aspects of managing your money when you’re self-employed is avoiding getting into financial difficulties. Many business owners are in debt, but there’s a difference between being in control of your debt and paying money back and struggling to keep pace with spiralling debts. Learn more about borrowing money and research different financial products. Seek expert advice before you take out a loan or use company or personal credit cards. You may already have debts, but what is a debtor and how do you know if you’re in too deep? A debtor is an individual or organisation that owes money to a creditor. If you can keep up with repayments and afford to pay bills every month, this is a positive sign. If you can’t pay bills and you’re falling behind with repayments, this is a red flag. Seek advice as soon as you notice warning signs. There are multiple ways to deal with debt effectively and there’s support available from charities, lenders and financial organisations.
Find a healthy work-life balance
Being self-employed can provide more flexibility and freedom, but it doesn’t always enhance your work-life balance. Surveys show that most people work longer hours when working from home. A third of UK small business owners work more than 46 hours a week. It can be difficult to switch off when you run your own company or you work for yourself. Without a regular routine, it’s easy to blur the lines between work and downtime, especially in the age of 24-hour communications. If you regularly check emails while you’re eating your evening meal or take calls at the weekends, this can impact your work-life balance. If work takes over your life, you may be more prone to stress and burnout.
Implementing a new routine can help you improve your work-life balance. Schedule time to rest, relax and enjoy time away from your desk. It is possible to work hard without devoting every waking hour to your business. Take regular breaks and make the most of your free time. Use evenings or breaks during the day to exercise, socialise, relax and enjoy hobbies and interests. Achieving a better balance will help you to boost productivity and improve your mental health.
When you’re working on your schedule, prioritise work and downtime equally. We often fill our days with meetings, calls and work-related activities and then we think about the brief pauses in between. Be proactive in blocking out rest periods or times to enjoy your passions or see friends and family members. If you want to be more active, for example, schedule regular fitness classes, go for a walk every afternoon or keep the weekends free so you can go running, cycling or swimming.
Manage your expectations
We live in a world where we’re exposed to success stories and actively encouraged to compare ourselves to others. We read inspirational quotes every day, urging us to ‘shoot for the moon’ or ‘seize the day.’ There’s nothing wrong with being ambitious and aiming high but it’s so important to manage your expectations. Goal setting is a brilliant source of motivation but your targets must be realistic. There are only 24 hours in a day and it’s impossible to be in two places at once. Outline your priorities and set objectives that are relevant to you. You might want to generate huge profits and make your business the first choice for customers across the country but it’s also fine to set goals that are more modest. Perhaps you want to increase sales moderately year on year but have enough time to put your kids to bed every night or see your friends every weekend, for example. You might have high expectations but it’s unrealistic to expect every day to be a success. It’s natural and normal to have days when you don’t want to go to work or times when you want to rest rather than be a social butterfly.
Embrace the self-care concept
There’s a lot of focus and attention on self-care at the moment. If you’ve read articles or listened to podcasts, you might have heard complex explanations or discussions about practices that don’t fit with your lifestyle or needs. In its most basic form, self-care means looking after yourself. You don’t have to overhaul your life or embrace every mantra. Simply paying more attention to your body and mind will make a positive difference. Try to prioritise sleep and relaxation, make time for daily exercise and make sure you have a balanced, nutritious diet. Spend time doing things you enjoy and seeing people who lift your spirits.
Doing more exercise is one of the easiest and most effective ways to boost your mental and physical health. If you have a sedentary lifestyle, or you find it hard to exercise regularly because you’re busy, small changes make a big difference. Health experts recommend 150 minutes of moderate exercise per week. This works out at fewer than 30 minutes per day. Set aside half an hour every afternoon for a walk, go for a jog after work, do an exercise class a few times a week or take your partner, friends or family members out for a bike ride or a hike at the weekend. Jog or cycle instead of driving the car short distances or take up a new active hobby. There’s a huge range of activities to choose from, including kayaking, paddleboarding, mountain biking, golf, tennis, team sports, climbing, dancing or trampolining. Being more active will help you lower the risk of health issues, such as type 2 diabetes and heart disease, but it’ll also make you feel happier, more energised and less stressed. Regular exercise can also improve sleep habits.
Getting enough sleep can be challenging when you have a hectic schedule or you’re susceptible to stress. Studies show that around 20% of Brits don’t get enough sleep. If you find it hard to switch off at night, or you wake regularly during the night, it’s beneficial to take action. Sleep troubles can impact your physical and mental health. You may find that you’re more irritable and that it’s harder to focus and complete even the simplest work tasks if you’re tired. Basic changes, such as creating a calmer, more soothing sleep environment and adjusting your evening routine, can help. If you go to bed at 9pm one day and 1am the next, getting into a routine will help your body clock adjust. Set a regular bedtime that allows you to get the sleep you need. Avoid checking emails or scrolling in bed and take an hour or 30 minutes before bed to wind down. Reading, listening to music or having a bath can help you de-stress and relax.
There are many benefits of self-employment, but it’s not easy to work for yourself. If you run a business, or you’re a freelancer, life can be stressful. The good news is that there are multiple ways to lower stress levels, including managing your money effectively to prevent financial anxiety, finding a healthy work-life balance, setting realistic goals and embracing the concept of self-care.
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