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The financial crisis and mass lay-offs of the last few years has been a wake-up call to take charge of your financial life. Companies no longer offer secure employment with benefits and pensions. Even before the recent recession, financial gurus were recommending that owning a business was the only way to build financially security. That idea is truer now as people struggle to find work and support their families. Starting a home business is a fast, affordable way to take charge of your finances.
When most people calculate their finances for a home business, they don’t usually offset those expenses by the savings working at home affords them. Working at home can eliminate many expenses associated with a job such as childcare and commuting. Other savings can come from reduced or eliminated grooming and clothing costs, and dining out or vending machine costs. Further, being home means you can take care of home repair or at least hire a well-researched service person to come during regular hours instead of the more expensive after-hours workers.
Some people avoid home business because they don’t want to hassle with complicated taxes. It’s unfortunate because home business offers a host of tax deductions not available to employees including some expenses you already pay such as your electric bill. I’m not a tax expert, so check with a tax professional or the IRS online for clarification on tax issues. With that said, owning a home business allows you take deductions for the expense of running your business, travel to a client’s house or the office store to pick up paperclips, as well as a home office deduction that includes portions of your utilities and Internet costs.
Today there is no such thing as job security and salaries are not keeping pace with the cost of living. While a home business doesn’t offer a salary like a job does, that doesn’t mean the income cannot be stable and regular. Further, you probably won’t fire yourself from your business and you can set your fees and prices to keep up with the cost of living.
Get Paid What You’re Worth
Running your own business allows you set your fees based on your knowledge and skills, not what someone else dictates. For example, a virtual assistant job pays $10 an hour, while most virtual assistant business owners are paid $30 or more per hour. If you’ve ever felt undervalued and underpaid, owning a home business is the best way to change that.