A life of financial freedom is the ultimate dream, at least for most of us. It is thus no surprise that you have worked hard in school and managed to acquire that well-paying job with all the benefits, hoping that it will set you on a path to financial freedom. Still, your money worries seem to persist. Well, here are four reasons why.
- Bad Advice-Throughout the centuries, society has assigned negative connotations to money, such as it being the source of all evil. In fact, “money cannot buy happiness” is a famous catchphrase in contemporary society. Due to such a negative attitude towards money, very few people take a keen interest in money and how to build financial wealth. As a result, parents, teachers, and career counselors are ill-equipped to offer advice concerning money. They thus resort to the “go to college, get a degree, get a job” hymn song to which many have fallen prey. Obviously, this route does not work if the high unemployment claims are anything to go by. Employees do most of the work and enjoy the least benefit in compensation compared to investors and business owners who laugh all the way to the bank.
- Little control –Being an employee means that you are subject to the whims of the business owner or investor. A downsize away from losing your livelihood. The pandemic ought to have taught us not to rely on a job as the primary means of earning money. Additionally, employees do not have control of their time as they invest most of it in their jobs. They thus have limited time left to pursue personal income -generating projects.
- The tax burden-Unfortunately, there is little an employee can do to alleviate the burden of paying taxes. As a result, their income is subject to taxation, further reducing their already limited disposable income. In contrast, large companies have a variety of loopholes they could use to avoid paying taxes. Thus, business owners and investors enjoy their funds without offering a huge chunk of their income to Uncle Sam.
- Lack of a safety net -Employees sell time in exchange for a paycheck. When not in a position to do this because of tragic factors such as poor health or injury, they fall into financial trouble and cannot support themselves. In contrast, business owners and investors have passive income, which acts as a safety net should they suffer ill health or encounter other tragic issues.
We at TetonPines Financial understand that it is not easy to transition from being an employee to a business owner or investor and are thus here to help. Contact us today to make that jump to financial freedom.