Health is a top priority for many of us, particularly since the pandemic. But, with hectic schedules and work pressures leaving us time-poor and overwhelmed, many in the UK feel their mental health is at risk.
Working for yourself offers greater freedom and control, and going freelance can be a huge relief for those who struggle with a traditional nine-to-five job.
But, being your own boss comes with a different set of challenges that could have a negative impact on your wellbeing. A quarter of self-employed workers are experiencing moderate to severe mental health issues, according to research in 2023 by the London School of Economics and Political Science’s Centre for Economic Performance.
So if you’re considering jumping ship to become your own boss, read on to find out how to prioritise your mental health.
1. Escape bureaucracy to prevent burnout
Bureaucratic and toxic workplace culture can stifle innovation and lead to an increase in depression among employees, not to mention lower productivity and poor engagement. Leaving behind a negative working environment can significantly improve your mental health, as freelance copywriter Libby Marks discovered.
“I spent much of my working life stressed and depressed, thinking I was the problem,” says Marks, who set up her own business, Write On Tyne, in 2019. Once self-employed, introverted Marks realised it was the work environment that was the issue and says her “mental health has been a million times better” since going freelance.
Alison Hardingham is a psychotherapist and executive coach who, like Marks, got “fed up with the politics and the bureaucracy” at her previous workplace. Having been self-employed since 2000, Hardingham now helps others who have made the transition to running their own business after finding they were stressed out by working for a large company.
“While [going self-employed] isn’t a cure for depression or really serious anxiety, it may be a change that allows you to recover from depression and anxiety,” she says. Hardingham thinks it’s important to pay attention to your mental health and be honest with yourself about “how stable and robust you think you will be” when you work for yourself.
Before you hand in your notice, consider talking to a business coach, mentor or therapist, and chat with other people who have made the move to self-employment.
2. Put family first
Research by the Chartered Management Institute in 2023 found that a third of managers believe that those with caring responsibilities are less likely to be promoted – a frustrating statistic for working parents, and another reason why some employees leave to go self-employed.
Though going freelance can be seen as a “way out” of a job you hate, you may still feel pressure to support your family – without the benefit of paid sick leave.
Marks says that after the birth of her daughter, she “couldn’t face the idea of leaving her and stepping back into an office” and wanted to prioritise freedom and family. However, when her daughter was diagnosed with cancer, Marks had to keep working through her treatment because “there simply isn’t a safety net for freelancers like there is in employment”.
Building your financial resilience, by creating a household budget and saving an emergency fund, can help to reduce money-related stress when you run your own business. You may still be able to use tax-free childcare to reduce your childcare costs for the hours they need to be looked after while you’re freelancing.
3. Prepare for feast or famine
Feeling undervalued and under-compensated can take a toll on your mental health.
Marks struggled with the “complete lack of meritocracy for progression and reward” and felt her earnings were “capped” by her employer. As a freelancer, she can earn three times what she previously was paid and enjoys being able to choose what to charge and how much work to take on.
But, as an employee in someone else’s company, you can rely on getting paid regularly, even if your wages aren’t as high as you’d like. Not all self-employed business owners are fortunate to be in high demand, and fluctuations in earnings can be a source of stress, even when things are going well.
To relieve her financial anxiety, Marks has become more of a saver. “It’s really important to work out what you need to live comfortably and put the rest away, to cover your costs if you don’t have work for a while.”
Irregular income can make it harder to save regularly for retirement but don’t forget to prioritise your pension when you go freelance.
4. Understand your own social needs
A lot of freelancers work from home, spending most, or all, of their working day by themselves. It’s therefore important to be aware of the hidden costs of working from home – financially and for your health.
After going freelance, Marks says it became clear she’d been “unsuited” to eight-hour work days that required constant contact with colleagues, so working for herself has been a relief. For others, being self-employed can be a lonely experience, so getting confident at networking is important, as it allows you to connect with other freelancers.
Networking isn’t for everyone, though, and you may prefer to keep your social ‘tank’ topped up by seeing family, friends and neighbours.
Whether you consider yourself introverted or extroverted, how much social interaction you need is worth reflecting on as part of the decision to work for yourself – especially if you’re going to work from home.
5. Follow your passion
Being self-employed gives you the freedom to do the work you enjoy, which can benefit your mental health.
Hardingham helps people work out what’s important to them in their careers and thinks finding your passion is the key to finding fulfilment in your work.
“The more I talk to people about what keeps them going, it’s something inside them which connects with what they’re doing,” says Hardingham, who recommends talking to a trusted friend or family member “to investigate your passion”.
While she doesn’t see self-employment as “the golden ticket to health and happiness”, Hardingham believes that doing some self-investigation to find the right freelance career for you can help you lead the life you want. By following your passions, you’re more likely to create happiness “as a by-product”, compared with a job “where you’re living somebody else’s agenda”.
Image source: Getty Images
About the Author
Dive even deeper
Tipping in the UK: How Small Businesses – and Workers – can Benefit From the New Rules
4 Reasons Why November’s Interest Rate Cut is Good News for Small Business Growth
by George Harrison