Despite BAföG or parental support, many students earn their own money to finance their studies . Instead of relying on mini-jobs or employment as a working student, you can also become self-employed. Let's take a closer look at the advantages you have as a self-employed person or freelancer and what you need to pay attention to when it comes to taxes or health insurance.
Easy to get started as a freelancer
Working as a freelancer is particularly suitable for self-employment during your studies. As a one-man company, you offer your skills to interested companies or private individuals. Individual fighters are particularly in demand in the areas of software development, text writing, graphic design or marketing. To begin with, you can search for relevant jobs in German- and English-speaking countries via LinkedIn, Fiverr or Upwork, for example.
Founding your own company or a start-up, on the other hand, is a more difficult task . In addition to a promising business idea, you often need capital, which is difficult to obtain as a student. Although there are funding programs for student founders, the financing options depend on your business concept and business plan.
What options do you have for self-employment during your studies?
When students decide to become self-employed, they often already have an idea for products or services. However, if you don't have a business idea yet, there are many options open to you, especially as a freelancer. There are numerous open positions, including software developers, graphic designers or translators. Choose an area that suits your qualifications and interests. Also pay attention to the competition in the relevant sectors. As an English-German translator, the range of competitors is greater than for translations from Chinese into German.
Popular options for independent students:
- Software developer
- Graphic artist
- Copywriter
- translator
- Marketing expert
- photographer
- Dropshipping
Advantages of being self-employed during your studies
Open time-management
One of the biggest advantages of being self-employed is the freedom to organize your time, which students particularly benefit from. You can take on fewer assignments during the exam period and work more during the semester break. You are your own boss and decide completely independently how much time you want to invest. You also decide when you want to work. This means you can complete assignments in the evenings or on weekends and better combine work with your studies.
Good pay for the self-employed
Especially compared to mini-jobs, you can earn significantly more money in many areas as a self-employed person. The new minimum wage of 12 euros from October 1st, 2022 is still tight for expensive cities like Hamburg, Berlin or Munich. As a freelancer in the area of software development, hourly rates of between 50 euros and 100 euros are possible. With just a few hours of work, if there is sufficient interest from customers, you can finance your studies. However, even as a freelancer there are poorly paid gigs and you should find out in advance about the possible remuneration in your industry.
Collecting practical experience
Depending on the activity you choose, you can also gain practical experience for your studies as a freelancer and mention it later in your applications. For students in the areas of computer science, design or marketing, among others, it is a good idea to put the theory from your studies into practice. You can also list what you have learned as the manager of your own company as experience and talk about the skills you have acquired.
Disadvantages of being self-employed and freelancer
Difficult customer acquisition at the beginning
In many cases, what is particularly difficult is starting your own business and finding customers. Without recommendations, well-connected contacts or an easy-to-find website, you should expect little income in the first few months. Depending on the business idea, it can even take several years for start-ups and companies to generate profits. If self-employment is intended to finance your studies, you should carefully calculate whether employment might offer a better solution.
Fluctuations in pay
While you can rely on an approximate number of hours and the corresponding pay with a mini-job or a position as a working student, this does not apply to self-employment. In some months you may earn high four or even five-figure sums and in other months you may hardly find any work. That's why you should build up reserves so that there is enough money left over for tax payments and living expenses even in worse times.
What do you have to consider as an independent student?
Accurate billing and payment of taxes
If you decide to become self-employed instead of taking on a mini-job or working as a student trainee, you should definitely look into the tax regulations in advance. In the case of an employee relationship, almost all of the taxes due are paid by the employer and only the income tax return remains to be completed. As a self-employed person, however, you have to take care of the transfer of the relevant taxes yourself and, for example, pay the income tax advance payment.
Even more important is the regular and correct payment of sales tax to the tax office. If you generate more than 22,000 euros in sales per year or actively decide against the small business regulation, you must pay the statutory VAT on products or services at the standard 19 percent or a reduced rate of 7 percent. You settle this with your customers and transfer the amount due according to the advance VAT return monthly, quarterly or annually. If there are discrepancies and missing sales tax payments, the tax office can quickly become uncomfortable.
Limits for student health insurance
Higher-earning freelancers in particular must pay attention to the conditions for participation in student health insurance. With free family insurance for up to 25 years, income may not exceed 470 euros per month or 5,400 euros annually. The weekly working hours must also be taken into account, which must not exceed 20 hours to be classified as a student. If you drop out of student insurance, you may have to expect significantly higher contributions depending on your income. It's best to ask your health insurance company what you should pay attention to before you start your own business.
Allowances for BAföG
If you receive BAföG during your studies, you will often have to repay the state subsidies if you become self-employed. If you can support yourself, the support will no longer be paid out. That's why you have to pay attention to the current BAföG allowances for your income, which are easily exceeded if you're lucratively self-employed.
Self-employment as an attractive alternative to a mini-job or working student position
If you decide to become self-employed during your studies, there can be significant advantages compared to a mini-job or employment as a working student. Working as a freelancer can particularly score points thanks to free time management and lucrative remuneration. However, you have to be aware of the difficult start and the respective regulations for students regarding taxes, health insurance or BAföG.
