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The Dark Side of Being Your Own Boss

By //  by Kevin M

Being your own boss is probably something most people think about at one time or another. It may even be a natural human desire. If you have a job, you see things that happen at work and imagine how much better it would be if you were the boss. But as exciting as that thought may be, there’s the dark side of being your own boss.

What is that dark side?

Fully Embracing The Concept Of “Chief Cook And Bottle Washer”

When you work for someone else, the workload is typically distributed among several people. Each person has a specialty, but there are usually extra hands available to pitch in when the workload gets a little heavy. And sometimes new employees or even temporary workers can be brought in to help out.

But when you work for yourself, it’s all up to you. This is especially true when you’re first starting out in business. Though the responsibilities seem endless, there simply isn’t enough income to justify hiring others to help carry the load.

As your own boss, you are responsible for everything that happens in your business – from the most minute details right up to the heaviest tasks. You have to generate your product or service, market your business, maintain customer contact and support, fill orders, and handle all of the back office responsibilities that go with self-employment.

Stress Starting Business

If this type of arrangement doesn’t set well with you, you have two choices:

  1. Find someone to partner with in your business so that the workload is shared – without having to pay a salary, or
  2. Learn to love and appreciate being an employee – though it may be tough, at least your responsibilities aren’t unlimited.

An Unlimited Schedule

Speaking of unlimited, one thing you learn early in the self-employment process is that your schedule seems to have no end! That’s not an exaggeration either. If working 40 or 50 hours per week on your job is tough,  imagine working 10 or 12 hours a day, six or seven days per week. That kind of schedule is entirely possible when it comes to being self-employed.

One of the ways the self-employed manage to get all of the work done – without paying someone else to do it for them – is by working an incredible number of hours to complete all work that needs to be done. For example, you might spend the regular workday – Monday through Friday, 9 to 5 – doing the basic functions to keep your business afloat. This can include product production, marketing, dealing with vendors, and making sales calls.

Since you’re so busy during the day, and on weekdays, you might do all the administrative tasks in the evenings or on weekends. Sometimes you may even find yourself doing more substantial work nights and weekends as well, like making sales calls or designing marketing material.

When you’re your own boss, your schedule essentially has no time limit. You work as long as you need to in order to complete the work that needs to be done.

Cash Flow Insecurity

When you work for someone else, you get comfortable with the idea of having a fixed amount of income arriving at predictable intervals. You may be paid weekly, semi-weekly, bi-monthly, or monthly. There may even be predictable bonuses along the way.

But when you’re your own boss, there is no income except what you generate. That means that cash flow is a constant issue. There may be times when plenty of money is coming in, but others when it’s hard to come by. Many businesses are seasonal, and have to make their money when they’re in season to provide for themselves when they’re not.

It’s a juggling act, and you have to be able to create multiple income streams – as well as a decent sized cash cushion – in an attempt to even out your cash flow.

Paying Your Own Income Taxes

This is an issue that most people never think about when becoming self-employed – until it’s time to file their first income tax return. When you work for someone else and you’re on a salary, your employer withholds income taxes for you. Most times you probably get a refund when you file your return.

But not so when you’re self-employed. The only way that your income taxes are withheld is if you make regular income tax estimates. And that has to include a sufficient amount of money to cover federal income taxes, Social Security and Medicare taxes (15.3% of your net income), and state income taxes. There’s nothing automatic about it – you need a rough idea as to how much money you expect to make, and then make estimates accordingly.

No Benefits

With the possible exception of cash flow issues, a lack of benefits is probably the biggest concern for the self-employed. When you work for a company, especially a large one, they will not only provide you with subsidized health insurance, life insurance, disability, and various fringe benefits, but they will often also provide you with the means to save for your retirement.

When you’re self-employed, none of those benefits are available unless you find a way to provide them for yourself. That will mean maintaining a private health insurance policy – which is never easy to get – as well as establishing and funding your own retirement plan.

Ultimately, you can do all these things when you’re self-employed. But it does take extra time, effort, and money to make them happen.

With All The Negatives, Why Would Anyone Want To Be His Or Her Own Boss?

I know what you’re thinking – why would anyone become self-employed facing all those obstacles? The reality is that not everyone can. Unless you are prepared to deal with the issues above and more, you’re probably better off letting someone else be the boss, then sit back, relax and not have to worry about all of this.

But some people are fully prepared to deal with it all, and there are compelling reasons for becoming self-employed that make working with all these obstacles well worth the effort:

  • The potential for unlimited income
  • Not having a boss to answer to
  • A chance to have creative control over your career
  • A more flexible schedule (despite the need to work longer hours)
  • Having more control over your income
  • Having a business to pass on to your children
  • The ability to live in a place where there might not be many jobs – thanks to the internet, many businesses today are completely portable

You have to balance it out. Some people are willing pay the price to gain the benefits of self-employment. But if you aren’t, that’s okay too. Stay where you are, and learn to love your job! Not everyone can or should deal with the many commitments self-employment requires.

photo credit: freedigitalphotos.net

Do you ever think about becoming your own boss? Have you given serious consideration to some of these obstacles?

Filed Under: Make More Money, Personal Finance Tagged With: be your own boss, Career, increasing income, making money, starting a business, working for yourself

3 Ways to Get the Most Money for Your Old Car

By //  by Sherrian Crumbley

Recently, I had to get rid of my old Toyota Camry after years of faithful service.  It was a 1993 and the transmission was on its last leg (kind of like my laptop).  We knew we were not going to put any more money into the car, given its current value compared to the cost of fixing the transmission, and also considering how much longer it could last us and the cost to maintain it until then. That’s when we decided to research ways to get money for your old car.

Also, we were blessed with the gift of a newer vehicle around the time the transmission started to go, so it all worked out!  It did not make sense to continue to pay insurance on the Camry once we got the newer Ford, and so we considered these 3 options for getting rid of our car.

3 Ways To Get Money For Your Old Car

Donate to Charity

This seems like a very popular option for a lot of people nowadays.  It is as simple as a phone call, and some charities will pick up/tow the vehicle at no cost to you.  The benefit of donation is that it is tax deductible if the correct steps are taken.

First, it is important to make sure the charity is a qualified 501(c)(3) organization.  Second, you will have to itemize on your taxes in order to get money for your old car.  Further instructions regarding the proper way to calculate fair market value for your automobile, qualified charities, and the correct documentation for the contribution can be retrieved from the IRS website.

Salvage Yard

Selling your vehicle to a salvage yard is another quick option to get rid of a useless vehicle.  You will probably get less money than the value you would have reported to the government on your taxes if you had chosen to donate, but if you prefer cash-in-hand, it is a great option.  Also, you are able to compare what different yards are willing to give you for your vehicle.  That comparison will help you get the most money for your old car.

If your car is running, they will be able to look at it there and give you a price.  If your vehicle needs to be towed, you are more at the mercy of whoever tows it in, and their assessment once it gets to the yard.  At that point, the value for them may be based on the value of the individual parts, or the weight of the metal.

Also, they will subtract the fee for the tow from the assessed price.

Private Sale

Advertising the sale of your vehicle is another common approach that allows you to ask for the price you believe it is worth.  Many people are interested in cars, even if it’s just for parts, and sites like craigslist are a great place to find an audience for such offerings.

Although self-advertising is time consuming, and may not produce an immediate response, some people find this route rewarding if they are not in a hurry to make money on their old car.

How I Got Money For My Old Car

Before the transmission started to go, we originally wanted to give the Camry away to someone who could use it, but we did not want to burden anyone with this repair.  If your old car is in decent condition, giving it to someone in your life that needs it is a generous option if money is not a consideration.

We opted to sell our car to a local salvage yard because of the convenience, their reputation, and my comfort – having dealt with them on numerous occasions over the last 10 years.  We plan to use the money in our goal to pay off debt.

Your turn:

Have you ever made money on your old car?

What do you think is the best option?

Filed Under: Personal Finance Tagged With: advertising, automobile, cars, cash, get money, IRS, making money, money, more money, old cars, salvage yard, toyota, toyota camry, wrecking yard

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