SCENARIO 1 – YOU WORK YOUR VANILLA URGENT CARE JOB
You work as an urgy doc and you make $200k gross in salaries. You live in a high income tax State (Oregon) and you have 2 kids and a stay-at-home partner. When you file your taxes you end up paying $63k in income taxes with an effective tax rate of nearly 32%. Not only are you losing more money than necessary but you are also not doing a whole lot to create wiggle room in your life. You are not hedging against a job loss. As a sole income earner if you lose your job you will lose your income – simple. You are a physician with only 1 client, your employer. If you owned a side business you would still have your #1 client but you would be working on adding a few more.
SCENARIO 2 – YOU STAY VANILLA But Also START A SIDE BUSINESS
You work at the same job with the same income and the same household situation. The difference is that you decide to start an online consulting business. You have no idea WTF this company will do yet but you’re interested in disseminating your knowledge and making money off it. So, ya pay a couple bucks for a website, throw some shit up there and spend a few hours every day on your commute coming up with ideas and selling them online (or at least trying to). You decided to pay your wife a salary to run the website. Let’s say you came up with $30k in operating expenses. You add a Schedule C to your taxes and in this scenario you end up owing $51,000 on the same income as before. That’s an effective tax rate of 26%. All it took is a cheap website and some ATP’s burnt during your commute to work.
Do you have a business idea? What’s keeping you from taking even just 1 step towards making it a reality?
Do you have a spouse that wants to go back to work? Could s/he start a business at home/online?