Why You Need To Quit Your Job.
Why Would You Want To Quit Your Job.
There are many different reasons why someone would want to quit their job, it could be you just hate it and want to change jobs or because of some health issues that have forced you to stop working. It could also be that you are looking for a change of life style so that you can spend more time with your family, some people understand that job security is also a thing of the past.
For me personally it was that i knew i hated working for someone else and i wasn't happy with the company that i was working for, so i started looking for various ways that i could set up my own business. Another factor in my decision to become my own boss was some thing that i had learned from Robert Kiyosaki having read his book RichDad PoorDad, he talks about the differences between being an Employee, Self Employed, Business owner and Invester and how it can effect us and how much we are paying in Tax each year.
So you have a job, great you can earn some money and pay your bills and have a little bit left over at the end to enjoy life a little, well that is if you can earn enough. Being an Employee means you are paying out for your Tax bill before you even get chance to spend any of it yourself, you can't claim for things like fuel, car insurance, computers, new car or the maintenance for it.
Example: So if you earn say £20,000 per year, you are taxed at 20% which is £4,000 per year tax bill, which means you only really earn £16,000 per year and thats not taking in to account National Insurance Payments.
See what i mean, as an Employee the Government gets paid before you.
Being a Self Employed person now means that you own a job, what i mean by that is that as long as you work hard for yourself you can earn a good living but if you stop working then that income is going to dry up very fast, so your business is very much dependant on you working for it. You do however now get to benefit from some extra Tax benefits, You can now claims for items like the fuel that you put in your car, the cost of the new car and the cost of the insurance that goes with it, the computer that you are using to help build your business and a whole lot more. Now i am no accountant, and Tax Laws may be different in various countries but if you take the time to do some research i am sure you will find i am correct with what i say, as long as it is a business expense.
Example: So if you earn say £20,000 per year, and your business expenses are £12,000 per year, that now leaves you with £8,000 profit, you now have to pay 20% Tax on the £8,000 profit which works out to just £1,600 per year tax bill, compare that to the £4,000 per year you were paying as an Employee and you can see right away you are paying less than 50% what you would have paid.
So you can see why i decided to move from being an Employee to a Self Employed Person, it was a no brainer for me.
Big Business Owner,
No we are talking, This is where i am aiming to get myself to. Being a Big Business Owner gives you the ability to step away from your business for a few weeks or even a few months and you still get paid no matter whether you are working or not. You no longer own a job, you are now running a business or you are paying a team of people to run the business for you while you are able to enjoy more free time to spend with your family or build other businesses.
This is also where you able to make some very serious money while leveraging other people time and money, however this is a subject for another day.
You are now also going to get Taxed slightly different to a Self Employed person, But again this is such a vast subject to cover i am not going to go in to any details here.
As an Investor you are now letting your money work for you, what i mean by this is that instead of you working for money you are now investing your own money in to various asset classes so that you are now getting a return on the money that you invest. You may be investing in things like Property, building your self a large property portfolio is one of the most common ways that the very rich hold most of their money in. You could invest in lots of other things such as Shares, Cars, Wine, Art and of course other peoples businesses.
The list is endless as to what you could invest in, my main point is that you are putting your money to work for you, not you working for money.
We are all in the same boat, get up go to work then come home have some dinner then off to bed we go to do it all again then very next day. I know how hard it can be to get paid at the end of each month, pay all the bills to then be left with very little money to then go out and enjoy myself. If you want more money then you are going to have to put in more hours at work but then your home life suffers and you don't have the time then to enjoy that extra money you are now earning.
Insanity: doing the same thing over and over again and expecting different results. Albert Einstein
You may not be able to get any extra hours form your employer as they may not have enough work to be giving you the extra hours you want, so what can you do then to earn that extra money that you know you deserve ?
You need to find a way that you can earn that extra money that you want, this is not going to be easy trust me as i have already done it. You are also going to be spending more of your free time on setting up and building you new business but once you have got the hard work out the way the rewards will start to far out weigh the loss to your free time, then at some point you will start to get that time back as you build and grow your business to the point where you are no longer working in the business yourself but you now have people running the business for you.
One other thing i would like you to think about is do you think that the money you are going to get from your pension is going to be enough money for you and your partner to live a comfortable life on when you come to retire, will it last say 20-30 Years ?
After discovering the differences between being an Employee, Self Employed, Business Owner and Investor this put me on my path to becoming a Business Owner and Investor so that i could earn that extra money i so wanted while giving me more time to spend with my family.
You can check out my other business at www.b3drivingschool.co.uk
Please feel free to leave your comments below or ask any questions that you may have.