There are two major classes of people in America. Which are the ones that believe the best way to leave a better life is to have a job, set up an IRA and save for future purpose, The other class believes that whether you are gainfully employed or not, you must have and operate your own business? To show you the class of people that are more right in regards to planning how to leave a better life, allow me to tell you a short story involving two brothers.
Two brothers each have an income of $5000.00 per month. They decide that they both needed a van that will cost $3000.00 for each, which will aid their movement around town.
They are both in a (30%) tax bracket.
Brother 1 has a job. Before he sees his money, $1500.00 (30%) is taken to settle tax. He pays $3000.00 for his van, and he has $500.00 left over.
Brother 2 owns a business. He gets his money before tax. He bought the $3000.00 van. His purchase represents a business expense. It reduces his taxable income down to $3000.00. He pays his $900.00 30% in tax, and he still has $2100.00 left over.
The above illustration is not a trick; it is the law. That just the way the united state law is structured, those that are into business are more favored. Additionally, a job is the closest thing to slavery if you ask me. Except for the fact that you agree to the deal, you are told when to resume work, when to leave, when to eat, when to visit the bathroom and how the period is going to take to do so, and there is no job security because you can be fired whenever your bosses/masters no longer need your services. You are allowed just enough time in between work periods to take care of your necessities and have a few hours of pleasurable activities and then it is back again to the “fields.” The worst part is that you cannot claim any expenses related to the job.
On the other hand, if you manage to own a business, depending on how you structure your business activities, many of your everyday activities become business expenses. You may even be able to lease space in your home to your business.
If you have the belief that it is difficult to start a business, I will advise you change that mindset right now. Here is how it works; you simply identify a market for a particular product that you are passionate about. A market is a group of people who want to buy a given product or service. You either contract your services to market this product or you purchase a quantity of the product to sell it.
You now have a business of your own. Of course, you should bear in mind that it is important to check local laws regarding any licenses that may be required, but this is a minor expense and shouldn’t scare any serious-minded person from venturing in business. If you like, you can even build your business around something you are so passionate about or have expertise in.
With all the explanations above, I believe you will agree that it is important to own a business in America or any other industrialized country in the world.