By Mike Johnson
As an employee, you think you’re getting a paycheck.
What you’re actually doing is providing lifeblood to many others.
Let’s start with the federal government.
Depending on your salary, they take up to 37% of your wages for income tax.
Then they take another 12.4% in payroll taxes (half of this is paid by your employer).
State taxes come next.
These vary wildly depending on your state.
Nine states have NO state income tax.
Perhaps you’re lucky and live there.
Finally, you’re paying your employer.
Your work provides more value to their business than they pay you in wages.
This is just the way it works.
Businesses need to earn profit and this is gained from harvesting the difference between what you’re paid and what your work is actually worth.
Wow. That’s a big bite!
You’re quite the philanthropist.
Donating half your salary and all that unpaid value is quite charitable of you.
But you’re rewarded with the security of knowing you can be fired for any reason, at any time, by any random jackass.
This is why the enlightened decide to stop being a donor and become an owner.
As owner, you gain legal tax deductions that allow you to pay as little as zero in federal and state taxes.
You keep all the value created by your own efforts and those of your employees.
You gain the security of an income stream that lasts as long as you decide to keep it. Nobody can fire the owner.
If you’re really clever, you hire a manager to operate the business and just manage the manager.
This takes just a few hours per week.
Now you’ve gained an income stream AND time freedom.
Buying a proven, existing business avoids the difficulty and risk of starting a business from scratch.
Buying a proven, existing income property avoids the complexity of intricate systems and numerous employees.
The more simple the income stream, the better.
There are many ways to earn income.
Jobs take the most time, pay the fewest rewards and provide the least control, security and freedom.
Jobs are good for learning but crummy for earning.
If you agree, you just might be ready to advance from donor to owner.
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More:
Start a side gig: 87 Ways to Earn Income Without a Job (or in addition to)
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