Working a job or working a gig…What’s the difference?

Discretionary Spending

Working a job is what most American do to make a living. Many of us begin working while in high school, some graduate college (approx 25%) and then work becomes our means to make a living.

Working for someone has it benefits. Business owners are the ones taking the risks. Their business is more dependent on them than their employees, and they are the ones that get to work the most hours. Business owners have to deal with taxes, regulations, and a host of business-related issues many never know.

Working for someone also has limitations. Working hours are the discretion of the owner/manager. Income is limited due to expectations and allowances for other employees. The paycheck you receive is after taxes and deductions leaving you to live on that which the government and the business dictates.

Working a GIG allows you to determine your hours. Income is limited by choice, not by others. Your paycheck is what you dictate. Owning a business allows you to deduct legitimate business-related expenses. This means you can deduct that car, your meals if you can show a business connection, and so much more. In summary, you get to live on the first part of your earning, the government gets whats left.

Owning a business allows you freedom, the opportunity to determine your own fate and it also allows you to grow your retirement instead of saving for retirement. You have the opportunity to develop a cash flow for as long as you want. This is important because I know several people who have outlived their savings and investments. Owning a business, working a GIG allows you to continue to earn even in the twilight years of life. When you work for someone else, when you stop working so does your income. Owning a business does not have to be the same. Once again the choice is yours.

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Remember hope is not a strategy, plan your work, work your plan.

Your friends,

Tim and Mike