Episode 17 of Live Better with Yasmin Shiraz discusses Why You Should Start A Business While You Have A 9 to 5 job. If there is interest on how to do it, I will do follow up podcasts sharing tips and tricks. But first I wanted to share this information on why you should have a business to begin with. And remember your side business can be extremely part-time.
Some people are going to immediately stop listening right now. But, wait. Here are four questions that are going to lead to big answers which will force you to agree with me that you should start a business NOW.
So here are five questions to consider:
Would you like to lower the amount of taxes that you pay each year?
Would you like to be practically compensated for driving around in a new car?
Would you like to be able to deduct portions of your rent or mortgage from your tax bill each year?
Do you have a cell phone? Do you wish it was less expensive? (That’s a personal one for me because I love my cell phone, but I wish it was less expensive!)
Before you think that what I’m talking about is crazy or not possible, realize that entrepreneurs save money in taxes — even small business owners, save thousands of dollars in taxes by deducting their cell phone bills, if they work from home – they’re also deducting their office space, and if they get a new car every 5 years, they are likely getting depreciation or mileage deduction for taxes. But, what does that mean for you?
I’ll make it simple for you. Say you decide to open a business and in the first year you don’t make any money. The US government knows that starting a business can be tough. But say you use your cell phone, space in your house, and your car all in an effort to get customers for your business. Well, all of the costs associated with those items are all tax deductible.
So, you work your regular job and at the end of the year, you’re paying Uncle Sam. But, if you start a small business and even if you don’t profit in your first year, Uncle Sam might actually cut you a refund check. How is that possible? Well, say for example, Uncle Sam took $4,000 out of your paycheck in taxes and your small business created $5,000 in expenses to get customers. Well, that means Uncle Sam is going to owe you $1,000.
When you already think about your cell phone, your rent, internet, and vehicle expenses, its very easy to see how that can add up. And remember, this is not an additional $5,000 of expenses, these are expenses that you already have because many of us drive to work, we live somewhere with internet service and we use cell phones.
I’m a die-hard entrepreneur but I’ve remained so because of the money that I save every year. And, I thought it’d be great to share this information with all of you. I used $5,000 in expenses as a round number, but you can save money without generating even $5,000 in expenses. There are numerous books on becoming an entrepreneur and I encourage everyone to read books and research before doing it. But, know that even a small business can generate big tax savings which for many people would be the equivalent of a huge raise. And remember, it can be a part-time business.
I hope this tip helps someone out there. A future podcast will discuss some initial steps on how to start a business if the interest in there, so let me know. If you have any tips or questions that you’d like me address on my site or on the Live Better podcast, please email me at YShiraz AT YasminShiraz dot net. For more Live Better episodes, please visit www.yasminshiraz.net , sign up on iTunes or sign up on Stitcher Radio. And, our show is now on YouTube.
See you next time.