Too Much Weight on “Finding the Best Jobs”
I’m tired of seeing personal finance blog posts with titles such as, “Done with the Freelance Life? Here’s How to Transition into a 9 to 5 Job,” or “Here’s How Five Recent Grads Turned Their Internships into Full-Time Jobs.” Society has gone back to valuing “employment” and quite frankly, this Smart Money Maker isn’t having it.
Why do we think that jobs are the right way to go? Do we think it’s too risky to start our own business or side-gig? Perhaps it’s that we’re scared to jump off the deep end and start our own business. Or at a loss as to what type of business to start? Maybe we think it’s that there’s a greater risk of not earning money when working for one’s self as opposed to a company.
Change the Way You Think
This way of thinking couldn’t be more wrong. You could walk into work one day, and the company sits you down to say, “thank you for your service these last several years, but we don’t need you anymore.” Even worse off, God forbid you walk into work one day and they say, “The company is bankrupt, and not only are you out of a job, but we can’t even pay you your last paycheck.”
Don’t think this can happen at your “stable” Fortune 500 company? Check these articles.
Please, someone, explain how working for someone else who has all the say in your pay is “safe.” How is that a better choice than being your own boss who decides how much you make and when? Sure there are some risks. Perhaps your company fails. But guess what, you can ALWAYS fall back on your old job, right?
Take a Shot at your own Business
Wayne Gretzky (and Michael Scott) once said, “You miss 100% of the shots you don’t take.” Why not take a shot? Worst-case, you wind up where you are with the satisfaction of knowing you tried.
Tax Benefits Business, not Employees
If I haven’t sold you on starting your own business, here’s another piece of tax information: the average American worker pays a tax rate of 31.5%. That means if you are an employee making $50,000 a year, you pay $15,750 a year in taxes.
That same $50,000 earned by a corporation is taxed at only 15%. In other words, making $50,000 as an employee, you will take home $34,250 with less before-tax deductions. If you started a company that earned $50,000, the company would take home $42,500.
If we’ve paid attention to any of the political ads during any of the last several elections, we know there are tax benefits and loopholes for businesses. Instead of being mad at the system and trying to change it, why not take advantage of it by starting a company to make money. You’ll then be able to take advantage of those amazing tax benefits.
People are so concerned with putting others down, but the fact is that this country favors those who want to make money. Why not start a business, make money, and reap the benefits the security your newfound company and tax benefits bring.
Business is Good
Further, if you do decide to start a business, think about how much good you will bring to the local economy. You will most likely be generating sales taxes for your local government, providing jobs, and providing a good or service to genuinely help those using your goods or services.
Being an employee has such a false sense of security with it. Even the safest of jobs are at risk of disappearing. Why not be the one in charge of that risk. Be the one who decides if your company fails. If you sit around all day making someone else money while they make the decision of whether you stay or go, all I have to tell you is be careful. Your cushy job isn’t always what it’s cracked up to be.