It’s been my experience that most folks don’t associate business ownership with being frugal. They automatically assume owning a business involves major expenses. While that can be true, that is not always the case. There are certain aspects to business ownership they’re unaware of or misunderstand.
The idea of giving Uncle Sam one cent more than necessary is simply annoying. Fortunately however, tax laws are written in a way that gives many entrepreneurs the ability to reduce the taxes owed. I remember spending money on things like dry cleaning, weapons, and fuel for my personal protection agency – a fancy way of saying bodyguard. These expenses were all tax-deductible. Every transaction was entered into ledger and each week my accountant would add up the total. This would be added to a column designated “deductions.” This was the amount of money that I didn’t have to pay taxes on. Additionally, my home was the main office of the business so I was able to write off a portion of the monthly rent at my duplex. Once my accountant crunched the numbers she figured my rent went from $615 to about $410 per month. I loved getting those income tax return checks, to put it mildly.
I strongly believe that time freedom is more important and valuable than a high salary. As a business owner, not only was I able to spend a lot of time with my young son but my child care expense was $0.00. That’s what I call frugal living! The cost of full-time daycare these days can easily run about $240 per month for each child. Instead of watching this money fly out the window, I was able to put it to work for me each month. A traditional job would have robbed me of time freedom and consequently $2,880 each year.
I realize business ownership is not for everyone. It’s hard work…but so is being a successful employee. The difference lies in a few factors:
1. If you are the boss, you are in more control of your income.
2. As the boss, you decide your schedule, not someone else.
3. Tax deductions await you.
Weigh your options and decide on a course of action. Business ownership just may support your frugal lifestyle goals.