Career vs. Self-Employment:

Which One’s Better for You?

When planning your future, you might feel pulled between two paths: working a steady job or launching your own business. Careers are often viewed as secure but limiting. Self-employment is seen as riskier but full of freedom and potential. But here’s something most people don’t realize: on average, self-employed people make about the same as salaried employees—sometimes even less, especially early on.*

Why? Because income—whether it comes from a paycheck or your own business—is tied to your value in the market. And early in your career, you’re still learning. You don’t have much experience, a proven track record, or deeply developed skills yet. That means companies won’t pay you top dollar—and neither will clients or customers if you start your own business.

Starting a business right out of the gate doesn’t skip this growth process. If anything, it magnifies it. You’re still unproven, but now you also have to figure out everything from marketing to operations to taxes. It’s a steep climb.

But here’s a smarter approach that people often overlook: join the workforce first. Learn on someone else’s dime. Build your skills, reputation, and network. As your value grows, your options do too. Later, when you’ve gained experience and real-world understanding, you’ll be far better positioned to succeed if you choose to go solo.

Self-employment can be rewarding—but it’s not a shortcut to wealth or independence. It’s a long-term play, just like a career. The key is recognizing that your early years in any path are about building value, not expecting immediate payoff.

So which is better? Neither—until you’re ready. The smarter question is: How can I make myself more valuable, no matter which path I choose?

*_{1. Longitudinal IRS Study (NBER, 2025)}

_{At age 25, self-employed and paid employees earn similarly. By age 55, self-employed individuals average $134,000 vs. $79,000 for paid workers—a roughly 70% higher income .Still, half of the self-employed earn less than comparable salaried peers; high earners skew the average upward.}

_{2. Census 2008 Data (Pew Research)}

_{Median personal income: ~$35,357 for self-employed vs. $35,000 for salaried—virtually identical.Median family income: ~$62,500 for both .Despite similar earnings, 40% of self-employed report struggling financially vs. 32% of employees.}