To begin on the path towards earning a full-time income while working from home, it is essential to be financially disciplined by staying focused and adhering to a work schedule that meets set monetary goals. According to Tory Johnson, a writer with ABCnews, determine in advance the goals to aim for and then work towards achieving them.
Find an Online Job.
Decide on a suitable career path based on educational qualifications and previous work experience. Online job sites and work forums regularly post leads for legitimate work from home jobs. Since many at home jobs tend to fluctuate in terms of work availability, the best way to earn money from the internet is to acquire a portfolio of freelance work to ensure a steady supply of earning opportunities.
Set Daily Financial Goals to Earn from Home
Make a budget of monthly needs and break it down to a daily amount to know how much to earn daily. Figure in an additional amount that goes beyond living from hand-to-mouth to having extra funds available for saving. Invest this money in ventures like stocks, bonds and mutual funds that will bring in additional income over a long period of time.
Reduce Monthly Costs with Telecommuting Jobs
Determine where the money goes on a monthly basis and then find ways to reduce or eliminate some expenses altogether. Find cheaper deals on internet, cable and phone services. Consider making home cooked meals in between work schedules to cut down on the costs of eating out.
By examining every aspect of the household’s spending habits, ways can be found to shrink the monthly budget resulting in a higher cash flow which can be used to build extra wealth.
Start an Independent Work at Home Business
Invest in a home based business that to create an additional stream of income and build wealth. Liz Pulliam Weston, an author and writer for MSN Money, advises visiting the U.S. Small Business Administration website as it has a free guide for those looking to set up a business.
Reevaluate the home based business at intervals to ensure it is creating wealth and not causing a financial drain instead.
Turn a Hobby into a Money Making Venture
Hobbies like culinary skills, craft making or woodworking, can be used to make items for sale. Channel the extra income earned from these towards investing in wealth building ventures.
Balance Work and Family Commitments
While working from home provides flexibility, it is challenging to keep up with work schedules amid other family and personal life commitments. Efficient time management and setting daily monetary goals helps to ensure long term financial goals are met.
Is All Self Employment Income Taxable?
Want to know how much self employment taxes will cost this year? First, know how much income is actually subject to being taxed by the government. Even in traditional employment, workers must cross a certain monetary threshold before they are required to pay income or other types of taxes. It’s true: some tax payments are avoidable.
Avoidable Self Employment Taxes
It’s possible that only some of the income earned by a professional in 2009 is subject to the self employment tax (which is almost 14% of net earnings). According to the US government, only net earnings exceeding $400 are subject to this tax. Church employee income must be taxed if the total amount is greater than $108.28. Only the first $106,800 earned is subject to standard social security taxes, though this break does little to help average self employed professionals.
Read the language carefully. Self employment income earned from a single source must exceed $400 before it is subject to tax. This means that professionals who earned $399 or less through a single employer in a single year in the course of self employment need not claim this income. When it comes to lessening those tax payments, every little bit helps – and this why a little bit of knowledge can be a very strong budgeting tool.
Using Tax Breaks
Even when professionals pass the $400 mark and claim all of their income, there are lots of ways to reduce those tax payments. Most taxes aren’t avoidable, but completely busting the budget on them is. Learn how to use self employment deductions to save money legally.
Equipment. All work-related equipment purchases, from pencils to brand-new laptop computers, are tax-deductible when they’re purchased for the sake of self employment. Office chairs, paper, stamps and envelopes – save the receipts, and lessen that tax payment.
Car mileage. Even those who work at home aren’t confined to their homes because of work. It may be necessary to travel to the store to buy supplies, and it’s always a good idea to record the length of this trip because it is also tax-deductible.
Health insurance. As Americans are keenly aware, health care costs a lot of money. Those who work for themselves can deduct some of this cost if they provide their own insurance, etc.
Home office costs. Many self employed professionals maintain a high-speed Internet connection, homeowners’ insurance, electricity…the list may go on and on. At least some of these costs can be deducted by self employed professionals who chiefly work at home.