How Much of a Paycut Would You Take To Be Able To Work For Yourself?

[Anonymous]

It takes a certain type. I like it, and I tripled my income by starting my own business, and I'm in an industry that pays fairly well to start with (software).

I work from home and can watch my kids grow up. That's extremely valuable to me.

That said, having to wear so many hats and shoulder all the responsibility can indeed be stressful sometimes.

[Anonymous]

Anonymous wrote:Most people on this board are not smart enough to work for themselves. They are too highly educated which means they lack creavitity, and they cannot function without being spoon fed. Also, many have the need for external approval and recognition. So go ask on another board.

Yep, you're right. I'm not ashamed of it.

[Anonymous]

I am doing it, making about the same money, and work less then I used to. I earn a lot (top 1%) so its worthwhile. The downtimes are nervewracking, but we've got a big cushion so I don't worry too much. I think at some point I may go back to a real job, but at the moment I really like the flexibility and the complete lack of guilt if I want to go to a kids sports event in the middle of the afternoon, or take a weekday to run christmas errands or whatever. When I decided to go on my own I was willing to take about 60-70% of my former pay (factoring in self employment taxes and benefits, etc.). So far I haven't had to take a cut but would be fine if I did.

[Anonymous]

Would love to go out on my own. I'm driven, efficient, and thrive on autonomy. I will admit that I'm not creative, but I'm strategic. The issue for me is that my industry is not something I could take on solo, or even with a partner. What I need to do is take my skills etc and transfer them to another industry. I've spent a lot of time and energy the last 9 months researching etc. to figure out what that industry is but I haven't figured it out yet. My goal though is to NOT take a pay cut but to make more...and I already make 150k. Why think small, right?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most people on this board are not smart enough to work for themselves. They are too highly educated which means they lack creavitity, and they cannot function without being spoon fed. Also, many have the need for external approval and recognition. So go ask on another board.

Yep, you're right. I'm not ashamed of it.

+1. I was more creative before I earned my degrees: it really did change how I think. But I pursued those degrees because I didn't want to rely on creativity to make a living: I wanted a sure thing. I would say I have the need for security, more than external approval.

[Anonymous]

I started my own company 8 years ago. I took no salary for 3 years (hubby was major breadwinner), but now I pay myself a salary equal to what I was making when I left the workforce. It was very hard work and a TON of stress, but now I have built it up enough that I'm doing the fun stuff and have staff to do accounting, HR, etc. - the really awful stuff that I hated to do when it was my responsibility.

Now I could never become a worker bee again. I leave at 3:00 every day to pick up DD and am free to take as much vacation as I want. But just as important is the feeling of pride and accomplishment at what I have created over the past eight years (around 35 jobs too!!).

Good luck to anyone who wants break out on your own - it's a long, hard road - but well worth it when you succeed.

[Anonymous]

It's the net pay that's important, not the gross. Think about all of your business expenses - now double that figure because you have to pay your own self employment taxes too. PLUS, you might have to find your own expensive health insurance.

[Anonymous]

Anonymous wrote:It's the net pay that's important, not the gross. Think about all of your business expenses - now double that figure because you have to pay your own self employment taxes too. PLUS, you might have to find your own expensive health insurance.

8:28 here. We're a corporation and have group health insurance for our employees. Yes, there are business expenses that get written off towards profits, but that saves on taxes. These are just excuses people give for not starting companies - those with entreprenuership in their blood are not deterred by these things!

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's the net pay that's important, not the gross. Think about all of your business expenses - now double that figure because you have to pay your own self employment taxes too. PLUS, you might have to find your own expensive health insurance.

8:28 here. We're a corporation and have group health insurance for our employees. Yes, there are business expenses that get written off towards profits, but that saves on taxes. These are just excuses people give for not starting companies - those with entreprenuership in their blood are not deterred by these things!

No, you were not deterred because you have $$$ - you went without any pay for 3 years and DH supported you. Most people do not have that luxury. And are lazy, I'll give you that.

[Anonymous]

Anonymous wrote:It's the net pay that's important, not the gross. Think about all of your business expenses - now double that figure because you have to pay your own self employment taxes too. PLUS, you might have to find your own expensive health insurance.

And all those expenses come right off the top. And I work in my pajamas.

[Anonymous]

What industry did you start your biz, OP? Congrats-- I'm envious!

[Anonymous]

8:28 here again. Yes, I had the luxury of a working DH who could support our family while I built my business. However, it was very risky as we put a significant amount of our llife savings into the business. We could have lost it all, especially with the recession hitting a couple of years after I started.

Unfortunately I don't work in my pajamas like the PP, as I have a brick and mortar business that is in the education field, which is the field in which I worked for 15 years before starting on my own.

Good luck to all the entreprenuers out there!

[Anonymous]

Anonymous wrote:It's the net pay that's important, not the gross. Think about all of your business expenses - now double that figure because you have to pay your own self employment taxes too. PLUS, you might have to find your own expensive health insurance.

Obamacare is going to change this! Yea! I can't wait until I can buy affordable health insurance and go out on my own.

I have little tolerance for office politics, I don't like rules or stupid people telling me what to do and how to do it. I've managed to stay employed so far, but I'm putting together a business plan, and as soon as I save up enough of a cushion, I'm outta here! I don't care if I make less money. I am not risk averse, nor am I a worker bee, nor am I a person who likes the security and safety of a structure where everyone knows what's expected of them.

I want freedom! And I'm going to get it. I'll take a pay cut for a while, but expect I'll make more money, a lot more, in time. Thank God Obama won!! I can't wait until I'm in the top 1% and have to pay more taxes!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's the net pay that's important, not the gross. Think about all of your business expenses - now double that figure because you have to pay your own self employment taxes too. PLUS, you might have to find your own expensive health insurance.

Obamacare is going to change this! Yea! I can't wait until I can buy affordable health insurance and go out on my own.

I have little tolerance for office politics, I don't like rules or stupid people telling me what to do and how to do it. I've managed to stay employed so far, but I'm putting together a business plan, and as soon as I save up enough of a cushion, I'm outta here! I don't care if I make less money. I am not risk averse, nor am I a worker bee, nor am I a person who likes the security and safety of a structure where everyone knows what's expected of them.

I want freedom! And I'm going to get it. I'll take a pay cut for a while, but expect I'll make more money, a lot more, in time. Thank God Obama won!! I can't wait until I'm in the top 1% and have to pay more taxes!!

I work professionally with a lot of people who work for themselves. One word of advice: don't spend TOO much time on that business plan. What I mean is, some people use working on and perfecting a business plan as a reason to delay going on their own. One client told me his business plan was his first contract with a customer (a builder). Several have told me they had everything set down in their business plan, then got a huge client and the plan went out the window - the plan they envisioned never realized, but a better plan came about in reality.

Not saying go into it wild eyed, just don't use "working on the plan" as a crutch that keeps you working for the man.

[Anonymous]

I am a risk taker, but I'm not passionate enough about something to branch out on my own. I am more likely to open a franchise, which I have considered.