There are many ways to make money in this world. By far the most common is trading hours for dollar, also known as a job. Maybe it’s the fact that I have never held a job for more than a year of my entire life, but I just can’t understand why people would choose to make their income this way. Trading hours for the dollar is like the worst possible method of earning a living one can make. Here’s why.
You Are Taxed The Most
If you trade hours for dollars, congratulation! You are the government’s biggest income source! And there is no way for you to escape it because the company you trade hours for dollars with will withhold the tax money from your paycheck. And speaking of tax, you’re number one! The more you make, the more they take – up to 50% of every dollar. Of the three entities that are subject to income tax (individuals, corporations and trust) no other entity is taxed as highly as an individual trading hours for dollars. Give yourself a pat on the back for being the government’s biggest money train.
You Have The Fewest Tax Breaks
Not only are you taxed the most but you have the fewest tax breaks available. While a company can write off pretty much anything that is used in the course of their business, you have to use after tax dollars to get to work, eat your lunch, buy cloths, fill the gas tank, etc. About the only real tax break available to people who trade hours for dollars is the RRSP (IRA or 401K in the US). And most of you don’t take advantage it!
You Only Earn Dollars When You’re Trading
Trading hours for dollar creates no residual or passive income – if you’re not trading, you’re not making any money. It’s a tough balancing act. You want to earn a living but you also want to spend time with family and friends. It’s give and take. When you trade hours for dollars, you can’t have both. If you want more time with family, you have to trade less. If you want to make more money, you have to keep trading. But then you run into the next problem.
There Are Only 24 Hours In A Day
It doesn’t matter how many dollars you trade your hours for, you are limited to 24 hours just like everyone else. And it’s really hard to trade hours for dollars 24 hours a day. That puts a cap on your income. Even if you’re a high power lawyer that bills out at $500 an hour you still have a cap. And while you’re making good money, you’re still trading hours for dollar. The instant you stop trading, the money stops.
Eventually a time will come when you can no longer trade hours for dollars. This will happen either by you becoming sick, in accident or are forced to retired. What happens then depends on the decisions you made earlier in life. If you planned well, you’ll have enough to live on without trading hours for dollars. However, statistics shows that the majority doesn’t plan well and will be force to take some kind of social handout – either by the government or family.
If you trade hours for dollar I would recommend you take a serious look at your situation. Look at how much the government is taking from you vs. what they take from corporations. How come my company, TTZ Media Inc only pays 17.5% tax on its income while you have to pay 50% if you made the same amount? What will happen to you and your family if you can no longer trade hours for dollars? Most of us don’t carry enough life insurance. We all like to think we’re invincible but we’re not.