Welcome to the Miserly Moms blog!
Let’s share resources to save money and stretch that dollar.
I believe we can do more than we think we can. I was a successful business woman with a career in Silicon Valley. After my son was born, I wanted to be at home full-time with my children. I didn’t believe that I could afford to quit, because I was bringing home 50% of our income. But I did it anyway.
Share your ideas here and let’s help each other be frugal!
Monday, December 5, 2011
Do Well: Is A Home Business For You?
Is A Home Business For You?
Whether you’re trying to supplement the family
income or just need extra money for a
project, you may be considering a second
job. But not all part-time jobs are created
equal. The type and location of the job can
determine whether it will be profitable. Jobs outside the home
provide a steady paycheck, but come with hidden expenses that
could cost as much as they bring in. Work-at-home jobs may offer
wonderful flexibility and potential for good return, but they also
have hidden costs that should be evaluated. Reviewing the costs of
each will help you decide which type of job will be most profitable
Working Outside the Home
A steady paycheck with no overhead or marketing burdens
appeals to most people. It’s simpler to check in and out of work
than to worry whether the business is doing well or if it needs
maintenance. However, this type of job comes with its own unique
expenses that need to be evaluated against the benefits. Some are
more obvious, such as daycare and parking fees. Others are hidden.
Here are questions to help you make a wise decision about working
outside the home:
Q. Will the extra
income bump your
income into the next
higher tax bracket?
your income lies on
the Internal Revenue
Service’s tax chart is
very helpful in deciding
if a second job will be
worth it. If you are close to
the edge of one bracket and the
earnings from your part-time job
bumps you into the next bracket, you will
be bringing home less of that extra income. Take a look at last
year’s taxes and see where your income fell, then add the anticipated
income of the second job to see if your income falls into the
next tax bracket. The bracket breaks are at $20k, $40k, $60k and
$100k. Any income that falls over a bracket break gets taxed at
the next highest rate.
I will continue this topic later this week! ~Jonni