What are 100,000 dollars and why is this amount something that so many people strive for? I remember when I graduated college my goal was to join the rat race, and work my way up the ladder until I found a job that paid me six figures every single year. I honestly, like so many people, believed that that was all I needed and once I attained that amount I would be set.
After a few years of working in companies as a wage slave toiling in cubes, or “pseudo cubes” I decided to leave the workforce and try to make it on my own. Although I do not necessarily make as much as I did working full time, if I look at things differently I will earn more than I ever will in a full-time job.and the best part of this kind of job that you can play Pubg pc when you want to play!!!
Here are my top 5 Reasons to Work for Yourself
- No More Commute or Rush HourI am sure this does not apply to all business owners, but this is a huge perk that most business owners get to enjoy. You can choose to work from home or visit your store office at no peak hours. You do not have to battle people to get on the train or sit through another traffic jam.
- Wake Up When You WantSimilar to the commute, most of the time you can wake up when you choose. Granted you may have client meetings and other things that need to get done, but there will be plenty of days where you can just sleep in to catch up on some well-needed sleep.
- You Decide How Much to MakeYou are now in control of how much you will earn. When you are in business for yourself there is a much higher correlation between the amount of work and payout, both long term and short term. When you work for someone else they get to decide how much you earn, regardless of hours spent, or effort exerted.
- You Choose Line of WorkThe best part about being your boss is being able to choose what to work on. If a project interferes with your ethics, morals, or you just flat out don’t like the guy, you can find something else. On the other hand, if a boss hands you an assignment often you won’t have enough leverage to refuse the work, and rarely will you get a chance to truly pick what you want to do.
- Tax Benefits – I am going to explain something as best as I can, to illustrate how working for yourself allows you to earn much less than as an employee, yet have much more spending power.
Exhibit A – Wage Slave earning $100,000 total a year (salary plus bonus)
- Minus 40% on income tax and bonus
- Works at least 50 hours a week (lets face it if you work less than that your prob not earning six figures)
- Commutes to work 1 hour round trip = 5 hours
- Pays for Own car $500/mo. = $6,000
- Pays for Own Gas $200/mo. = $2,400
- Pays for Own Insurance $100/mo. = $1,200
- Rents apartment for $1,000/mo = $12,000
$100,000 – 40,000 tax – $6,000 -$2,400 -$1,200 -$12,000 = $38,400 @ 55 hours a week (including commute) x 50 weeks = $14.000/hr… bear with me
Exhibit B – Works from home on home business earns only $40,000 a year. Charges about $50/hr for freelance/consulting work. Works about 800 hours a year or 16 hours a week with 2 weeks for vacation.
- $5,000/yr Travel Expense – Tax Write off
- $5,000 Computer, Software, Desk, etc – Tax Write Off
- $3,000 Advertising – Tax Write Off
- $5,000 Outsource 20% of Consulting Work – Tax Write Off
- $1,500 Apartment – 1/3 Tax Write Off
$40,000 – $5,000 – $5,000 – $3,000 – $5,000 – $6,000 (apt $500 x 12) = $16,000 which puts him in the 10% income tax so another – $1,600 leaving you with $14,400 cash… but wait there is more
800 hours – 160 hours (20% outsource) = 640 hours…. $14,400 / 640 hours = $22.5/hr
Conclusion Exhibit B the Self Employed Business Owner only works about 13 hours a WEEK and make more money in that week per hour of work then his $100k salary man. He has more free time to enjoy life, spend time with his family, and do what he wants.
Now don’t get me wrong this math is not perfect, and there are expenses and other things I am missing. But the point I am trying to get across is when you are a business owner you are much more in control of your money. The money you make as a salary man goes to taxes when you are a business you can choose to use that money for investing in the growth of your company. You also get to write off more things than you can imagine, and with a little creativity, you can use tax money to pay for vacations, computers, and more!
