Hey, everyone, it's Kia. Do you ever feel like the classic nine- to- five office job working for someone else just isn't quite right for you? Well, there are lots of other options out there. Self- employment could be a really empowering option, and it's getting more and more accessible, but you do need to wear many hats as well as your main hustle. You have to be the HR
department, finance, marketing, sales, and digital teams. I'm chatting with Georgina Merckel about the opportunities self- employment has given her, as well as the financial stuff you need to keep in mind when you're working for yourself. Georgina is 27. She's the founder of TOPA, a small business and nonprofit consultancy. She's also won a Young Freelancer of the Year Award in 2022, so she's definitely the right person to
be speaking to. So, Georgina, can you start by talking us through your self- employment journey? Because we want to know how that's looked like for you.
So, I came out of university, I did a master's, and I just got an admin job working for somebody else, and I started that, and it was a couple of weeks before the pandemic actually, I decided to make some extra money online. I Googled, " How can you make more money online?" And virtual assistant came up, and I was like, " I can do that. I'm doing HR, admin."
And I joined a freelancing platform, and so I just put myself online, got some clients, started doing the work, and then we went into lockdown, and I just went from being in the office to working from home, so I could do eight till four in my job and then four till eight in my self- employed stuff. It
really grew from there. So, by six months in, I decided to do part- time work, so I cut my hours down to three days a week and did my freelancing work two days a week, and the weekends and the evenings. And then eventually, about nine months after I started in March, I went fully self- employed, and my business
just evolved. I moved away from admin into consulting and operations, and then it's just grown from there really.
So, Georgina, what are some of the things that you love when it comes to being self- employed?
The freedom that self- employment gives you is out of this world. So, I pretty much work from my sofa with my dogs every day. I take random walks in the middle of the day. I get to choose who I work with and when. Last week, there was one day where I worked from 5: 00 PM to 11:00 PM. I did all-
day cleaning. There's just so much you can do. I've worked with clients that just don't really vibe, and at some point you can just say, " This is not going to work for me." And then you can just move on and find clients that serve you better. And tomorrow I could be like, " I don't like the direction of my business, so I'm going to start marketing myself somewhere else." But you can do everything all- in- one job,
and that's the best bit. I think it's the right choice for me and for so many people out there, and we just don't get the exposure to being why you should be self- employed or why you can be self- employed because there's a whole world of self- employment and community and people who are literally targeting the same audiences.
But we're all so different. I have so many friends who do similar things, but one client might not be for me or for my friend, but they'll vibe with someone else we know, and there's no competition. So, I just really love being in that freelancer community and really just setting my own life and my own plans, and there's no restrictions.
You're selling it to me, and I'm already there. It sounds amazing. It sounds great. I mean, having a sofa office, being able to do all that work when you want.
Yeah. I mean, I call it the soft office.
Yeah.
That's basically where I work all the time. It's not good for your back, though. I do have a desk. I do try and I do the whole standing, sitting desk situation, but most of the time I'm just sat on the sofa with the dogs with a blanket work from my laptop. I've worked in the car. I travel, and I'll just be sat on my laptop in a service station typing, drinking Starbucks, and filming myself for reels.
Sounds like a dream. Where do I sign up? You've already sold me. I want to sign on the dotted line now and join the self- employment route. Self- employment is such a big leap, especially the way that you did it. You did it a really smart way, having your nine to five and then your five to nine, as people call it, working on your
side hustle effectively until it became your main hustle. But what was it that gave you that confidence to say, " I'm going to leave my skew nine to five and actually take the plunge and the leap into my side hustle (inaudible) "?
It took me such a long time, and I could have done it a lot sooner if I'd had the confidence to do it, but it got to the point where I just couldn't juggle both, and I was reaching the point of burnout, and I was just working all the time. And at some point, I knew that had to change. So, it took a lot longer than I would've wanted it to. If I could go back in time
now, maybe it would've left after six months. But what was great is I started building clients and my job, so I started matching my salary, and by the time I could match my take- home monthly, I decided that was probably the right time to leave because I wasn't going to take this big drop in income.
Of course.
I was just going to go straight into the same salary, but on my terms, and then I could just take it from there and see what happens after that. But it took a lot of guts in the end really to get there because I didn't know anyone self- employed. I just did it. A lot of the people I'm around are all employed people with secure jobs, and they didn't know what to say either. I kept saying, "
I think I'm going to leave my job." And they were like, " Whoa, you're making that decision? That's a bit scary, isn't it? You've got this job." And by that time, I'd fallen out of love with it because I fell in love with working for myself. I just couldn't do both. So, at some point, I had to give,
and I'm so glad I did. The pandemic definitely was the reason why that took off because everyone, all my clients, needed virtual support, didn't care whether you were in an office or at home, on your sofa wherever you were, but were just ready. And so it just really was all those things at the right place at the right time.
That's amazing that it's all just falling into place, and I mean, your journey is a testament to everything. So, that is amazing. Now we're going to move on to more the money side. So, the financial side of things. So, when it comes to self- employment, I've been self-
employed, I am self- employed right now. And I myself know how finances can take you aback, and especially when you've come from something so stable as a nine to five to being self- employed, there are things that can change your finances and some things that may take you by surprise. So what, when it comes to the financial side of being self- employed, took you by surprise?
I didn't have any kind of insight into what I needed to do. I had no plans, I didn't take any advice. I just went self- employed, and that included the financial aspects. So, I knew about tax; I knew I'd have to pay it a different way to how I'd been doing it in a payslip, but I just thought, " Well,
that happens in January, and I'll work it out then." And then I did get an accountant, who I just didn't educate myself well enough on, the right person to work with and to get the right advice, and I never even asked how much he cost until I got the bill at the end. And he was like four times the price of my current accountant.
Oh my gosh.
And I was shocked. I was shocked at how much tax I had to pay, and I didn't know I had to pay a year and a half, basically, of tax. You had to pay payments on account, and I didn't know about that, even though I think I did in the back of my head and I just hadn't thought about it, prepared. But then there's
so much more. There's income protection and your pension. I paid into a pension when I had a job, but I never realized you had to do that as a self- employed person. I never thought about what happens if I get called for jury duty tomorrow or have an accident, or what if my business closes. What am I going to do? And so I had not made any of those plans. Now I'm so grateful I have got those
things in place, but I didn't read enough. It was like a year in, and suddenly I started to realize I had to learn this stuff quickly.
I think a lot of people will share the same story as you do. I know I definitely do. You kind of jump into self- employment, and it's great. You get to be your own boss, you get to do things that you want to do in your own time, and then the financial side comes, you're like, " Wow." Because I know for me, income protection was, again, something I didn't have. I wasn't fully aware of when I first
started my journey. Also, having an emergency fund-
Yes.
-For your business was something that I hadn't factored in until I'd gotten to a point where I'm like, " I should really have a pot of money just sitting there in case I need to cover things in case things..." As you know, income comes and it ebbs and flows; some months are great, some other months are just lower. And those are things that I had to learn on the go, and it's only because I have an accountant and I have
all of that. But if you don't know, there's all things that you'd never know to consider until you're in that situation that's typically too late. So, Georgina, knowing what you know about your journey, what do you wish that you would've known or would've done differently/ again recommended to others who were about to embark on their self- employment journey?
I think get really good advice. I mean, it's never too early to get an accountant. First of all, they know what they're doing. They are experts. Now I have an amazing small business accountant who works with people just like me. And so you get proper advice about your taxes, what you can claim, whether you should be a limited company or a sole trader, what you should be
paying into. I didn't know that if you've got a limited company, they can pay your pension on your behalf, but if you're a sole trader, you pay yourself. So, there's a tax difference there. And if you get that good advice and also get the fees upfront, so you know, on budget ahead of time, that will really help.
I wish now if I could go back in time. I had a checklist of things to do from day one, things to do from six months in, and I'm now a member of IPSE, and they have a package where you get jury service cover and income protection. There's some life assurance and contract dispute cover, and those things come together;
you don't have to think about them separately. So, if you get the proper advice and you look at what your options are, clearly you can make those decisions well in advance and be prepared for them.
I completely agree with the advice that you've given, I think is so key. What would you say then to someone who's on the fence about becoming self- employed? Because it is a big jump. You and I have both done it, and I'm sure we can both agree that it is a big leap. It's one that I'm happy that I've done.
Yeah.
However, I do understand it is a big change. So, what would you say to someone who is on the fence about that?
I think if you're thinking about it, it's probably the right decision for you. If you're on the fence, start taking it seriously and start thinking about it. I would start doing both your paid job and the self- employment thing at the same time to build up that income because once... It's like a momentum thing; once you start getting clients or bringing in money, it carries on from
there. So, it's really simple to keep doing it, but personally, I would do it. The freedom I get from being self- employed is just way above anything else in terms of any other benefits I could get. I wouldn't change it for the world. And I think if you're thinking about it, you're probably on the path already there.
I love that. I think, yeah, like you said, if it's rooted in your mind, it's probably something that you do want to do. So, Georgina, let's talk about pensions. Okay, so in episode three of A Little Ritual, we cover the importance of having a pension when you're in a workplace, but when you're self- employed, we know that workplace pensions don't actually apply here. Just a little summary
to our listeners. A pension is a pot that you contribute to that will essentially fund your lifestyle once you reach retirement age. There are many benefits to contributing to a pension, especially from a younger age, as you're able to benefit from government top- ups and certain tax exemptions.
But a question I want to ask you, Georgina, is how can someone who's self- employed go about setting up a pension, and why is it so important to have one?
It's important because at some point you're not going to want to work anymore, or at least the level that you're doing right now. So, you have to be able to pay for your life. So, you need to start doing that. And the earlier you do it, the better it is. About a year into my self- employed journey, I just set up a pension using an app and
started paying two pound a week into it. And in my head, I was like, I've ticked the box of setting up the pension, and I'm going to come back to it in three months time and work out what I should be putting in there. And that step for me was really helpful because I'd done the admin bit
and I'd got over that hump. Then I started working out what actually I need to save between now and 50 or 60 whenever I want to step away from my business. What am I going to need to live on to make the same money I can make now? So, it's really important that you start thinking about it. The earlier, the better.
Even though you contributed two pounds a week, it's the action of starting it.
Yeah.
That is what's going to trigger you to, at some point, sit down with it and say, " Actually," like you said, " how much do I need to have in there? What amount am I trying to get to?" And then work backwards to start actually putting money into there. So, we mentioned how it's important, but how can someone actually start actually saving into a pension? How did you do it, for example?
So I literally Googled self- employed pensions, and there are loads of options out there. I just signed up with an app where I put my details in, you do the admin bit, and then you just set up a regular amount or a lump sum. It's up to you.
And I think that's so key. As somebody who's self- employed, being able to control how much you put in, being in control of that is what you need.
Yes.
So, I completely agree with you on that. I want to run off the episode as we always do, Georgina, and I'm going to ask you. What are your three tips to help our listeners get a little bit richer?
So, if you're thinking about self- employment, start now. Start earning money or building that momentum. It's hard work, but it will pay off in the long run because then the drop or the change will be less dramatic. Start the pension early, like day one. You can do it if you're employed, right? You can just set up a private pension. There's nothing stopping you. And I think the third
thing is look into what packages are available. Can you get a group insurance that'll cover multiple things? Because it's better for you in the long run. Work out what the best options are, but get started sooner rather than later. The earlier you start sacrificing that income, you'll be better off in the long run, and it'll all just flow.
Thank you so much, Georgina. You've shared so many amazing insights and gems for us on this episode.
Thank you.
That has made self- employment not seem as daunting for anyone who wants to get into it. So, thank you so much for joining us. It's been great to hear Georgina talk about her experiences of self- employment. Next week, we're continuing the conversation about the different career journeys that are out there. Where we look at the freedom your finances can give you. Want to retire early, travel, work part- time?
Take a listen to hear what might be possible. In the meantime, be sure to follow the podcast and tell your friends. Bye.