#4 – Start a Home Business
Running a part-time business from home has two main benefits from a financial point of view. The first obvious reason is the extra income it can provide. The second, perhaps less obvious reason, is the tax benefits of self-employed income. Salaried workers get taxed, paid and then spend what’s left. Self-employed workers spend, then pay tax on what’s left. In other words, self-employed workers get taxed on profits and not on income and this is a big difference.
Whether you are a freelance designer, developer, writer or are a distributor for a direct sales company – many of the things you spend money on each month such as car mileage, phone and Internet costs, stationery and even your utility bills; a proportion of them can now become business expenses.