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Have you ever thought about starting a business and or side hustle? Maybe you’ve tried “one of those things in the past and it didn’t work and now you’re swearing off all businesses” There are definitely benefits and drawbacks to running a home business…

Inside this episode, we’re going to get into what those look like. After 10 years of running a business of my own in some fashion I’ve learned a thing or 2 about what it takes to actually make it AND what some of the not talked about benefits and drawbacks actually are so let’s do this!

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Resources & Links

Money Masters Inner Circle Academy – https://aimeecerka.com/innercircle

Instagram – https://instagram.com/aimeecerka

Podcast Keypoints

0:00 – Episode Overview
2:02 – Episode Sponsorship – Budgeting Simplified
3:58 – Eligible Deductions
6:30 – Taxable Income
7:44 – Accounts – What You Need To Know
11:00 – Commitment
11:49 – Time & Money Investment
13:00 – How Long Till You See Results
13:55 – Is Business For Everyone?
15:01 – Money Magnifier Toolkit
15:45 – Challenge

Frustrated that you aren’t making the progress that you should within your finances? Create an unshakable money mindset with the Money Mindset Mastery Checklist

Read It! Benefits And Drawbacks To Starting A Business – What You Need To Know

Have you ever thought about starting a business and or side hustle?

Maybe you’ve tried one of those things in the past and it didn’t work, and now you’re squaring off all businesses. There are definitely benefits and drawbacks to running a home business.

Inside this episode, we’re going to get into what those look like. After 10 years of running a business of my own in some fashion, I’ve learned a thing or two about what, like some of the not talked about actual benefits and drawbacks, like what they actually are.

This is the Your Money Your Life podcast, where ambitious women come together to have clarity, prosperity and confidence with their money without sacrificing precious time and well-deserved fun. So let’s do this!

Welcome to the Your Money Your Life podcast. I’m your host, Aimee Cerka.

After my husband and I faced three major financial roadblocks in the last six years, I felt like I wasn’t doing all that I could and I had let my family down. It always felt like life was a struggle like I had to work harder than everyone else. It just came easy to them, and I didn’t feel worthy of success.

Until, a coach helped me see the successes in our experiences instead of our failures. This allowed me to create and implement systems to grow our network by 200,000+ while spending time with my loved ones and on my priorities. Now I help motivated women create the happiness, family life, financial security, and long-term wealth they deserve.

If you’re ready to eliminate stress, struggle, frustration and guilt within your finances, you’re in the right place. Welcome, I’m so glad you’re here!

Did you know that April is financial literacy month? That’s why this episode of the Your Money Your Life podcast is brought to you by Budgeting Simplified.

Do you struggle with stress and overwhelm with budgeting? Or do you get frustrated that you spend so much time on your budget. Yet, at the end of the month, you’re not actually getting ahead? You’re not alone. This is actually super common, and I’m here to help.

Inside Budgeting Simplified, I will show you how to budget successfully in a simple manner that sets you up to create prosperity, freedom and security. As you go through this process, you’ll have a budget specific to YOU and the unique lifestyle that you want to live. One of the best parts is, you don’t have to be a numbers person, I did all that for you. I created the system that you can plug and play and finally have the confidence that you’re craving.

With Budgeting Simplified, you have a failsafe built into your budget. So then when life throws you curveballs, as we all know it will, your budget can handle it. Stop the cycle of your bank account draining every month and finally, feel confident and have fun with your money again.

If this sounds like a heck yes for you, then simply visit aimeecerka.com/budget. And of course, if you need that link again, it’s hanging out the show notes for you.

Welcome back to another episode of the Your Money Your Life podcast. I’m your host, Aimee Cerka.

I’m so excited to talk about this because, especially some of the benefits, really both sides, like the benefits and drawbacks and even like the drawbacks aren’t necessarily drawbacks. There are things that just to be aware of. Okay, so I’m really excited to have this conversation. So, take a screenshot, tag me on Instagram, let me know you’re listening. I can’t wait to hear your thoughts.

First thing, one of the biggest benefits that people don’t, I mean, some people know but we don’t know really. A lot of people don’t necessarily know the magnitude of and even those that are aware, there are different professionals that do different varieties, there’s different on the spectrum. Here, let’s just get into it, okay.

Deductions is one of the biggest things. When you have specifically a home-based business, and even if you have a brick-and-mortar business, you can still have a home office and get additional deductions. Of course, you’re going to talk with your accountant, we’re going to get to that in a minute.

But deductions, if you do not have a home-based business of some sort, you just have W-2 income with just traditional employee income, you are paying more in taxes. The tax code is designed and to reward those that are business owners, because business owners create the jobs, and what does the economy need to thrive? We need jobs. That is why the tax code is built like this; because those that built the tax code understood that.

It’s been a while back, so I’ve not got an updated statistic. But I’ve heard it said before, like, essentially, if you don’t have a home-based business, like when you’re driving down the road, just throw a dollar out every two miles. I think for every two miles you drive, like throw $1 out. And part of that is because mileage is a deduction that you can have, and of course, we’re going to talk about those over and over again. You got to talk with your accountant, I’m not like your legal professional. And when we start talking about accountants, there is differences in accountants and the way that they operate. Okay.

So you have your deductions. You got home and office deductions, your internet, your phone bill, electricity, you water, rent, mortgage, HOA dues, home repairs, all of those things. They can all in partiality, not the full amount on some of those, but like, a percentage of that can become a tax deductible, especially things you’re going to pay for anyways. Like, you’re already gonna have a place to live, why not make part of it a tax deduction, okay.

So then you’re gonna have a lower taxable income as well, because the way that the tax system works is with W-2 income, you are taxed first, okay, so you’re taxed first, on the full amount, gross income, we’ve all seen this on pay stubs, and then they take your deductions out. The way that 1099 or home business, that’s the contractor type income works, is you have the income, you get to take all of your deductions and you’re taxed on the lower amount, like after your deductions.

There’re different ways to protect investments with that as well. Like you’ve probably heard that talked about, like, what there’s differences with 401k and life insurance and things that you can do pretax money, post tax money, there’s difference there, same type thing. So you’re gonna lower your taxable income as well because all the deductions that you can take. Some of those are expenses you’re going to have anyways.

Also, if you’re listening to the show, I’m betting you’re into personal development. And of course, get with your accountant, some of your personal development becomes tax deductible anyways. Like if we’re going to do it if we’re going to work and improve ourselves, take the tax deduction, right.

So with the accountants, gotta make my little caveat here, we need to be aware of. Accountants are not one size fits all. And bookkeepers, accountants CPAs, they’re all great. Mostly, this is gonna be CPAs and accountants, but they are not one size fits all. You need to have an accountant that works with you. You also need to have an accountant that’s not afraid of the IRS. Okay.

I know most of us, I say us, I don’t, I’m not really afraid of the IRS anymore. I’m sure it’s one of those things like you know, you get the letter in the mail and it’s like, “what now”, but I’m not afraid of them because I know we’re following the code. So you need to have an accountant because I’ve had multiple accountants in the past.

And there was one accountant, great guy to work with. I mean, honestly, his prices were less expensive. It wasn’t paying as much, but he was always afraid of getting audited and that’s something that you hear all the time. So I would not take deductions that I was entitled to, because we were trying to make sure we weren’t going to get audited.

Versus I have the accountant that I use now. And if you’re in Money Masters Inner Circle, she’s got a training that I’ve added in there as a bonus, definitely check it out because it’s kind of mind blowing the way that things work, when things actually work. When you look at the rulebook, like if you’re following the rules, there’s no reason to be afraid of being audited.

We get afraid, because we don’t know what this will look like. We don’t know if we’re doing what we’re supposed to. So if you have somebody that’s helping you do what you’re supposed to, you can take the deductions that you’re legally given to take to do the things that were supposed to. You set this up correctly, it’s done right.

Finding an accountant like that is truly on your side and not being afraid. And not on your side where like “we’re gonna bend the rules and do things illegally”. This is always legal, moral and ethical. Hopefully by now you know, that is definitely one of the values like having higher integrity and not cutting corners.

I mean, like Easter and Easter egg hunts like we’ve gone to like neighborhood events where they have, you know, the different age groups that are doing the Easter egg hunts. And everyone else, not everyone else, it’s too broad of a term, most everybody else is letting their kids do whatever age group instead of sticking with the age group they’re supposed to be in. My kids are going to be in the age group they’re supposed to be in, because that’s how it works and that’s how important integrity is to me.

This is not about doing things that are not in integrity, this is about getting what you deserve, what you’re entitled to, what you’re given. And if you’re doing the work, you’re allowed to get that. And that’s another thing inside Money Masters Inner Circle Training, Courtney talks about that, but I believe it is 45 minutes a day, three times a week. If you’re working for 45 minutes a day, three times a week, you are considered a business owner, and then you’re working in your business. Okay.

Now let’s get to what some of the drawbacks are. Okay. So, the first one would be commitment.

There is a different type of commitment involved with having a business versus having a job, okay. There is more of a short-term reward when you have a traditional job. And neither one of them, it’s not like good or bad, it’s things that we need to be aware of, okay. There’s more of a commitment, you have to be committed long term, we have to be consistent to be able to see that gain, but long term with a business, you’re gonna have an increased gain than you would as an employee, because there’s more room to grow, there’s not as much of a ceiling that you’re going to hit.

Another thing to consider drawback would be time and money.

Businesses do take investments. You can bootstrap, and do things essentially for free. But I find when you do that, you’re going to take more time to see the same results.

We talk about fast tracking results and if you’re ready to create those unstoppable finances, like I’m here to help you, yes, you can DIY it, and there’s so many different resources out there. But if you want to fast track, and make the most of the time that you have, it’s gonna take some money, some commitment, again, there’s gonna be the tax deductions that works well for you. But you might not be profitable the first year.

I mean, they said, I’ve been in a head a business of some sort now for over 10 years, and there’s been different varieties of overhead. I’ve had several homebase business myself starting in network marketing, etc. My husband and I owned our own semi-truck, that’s a lot more overhead and inventory isn’t the right word, but having those expenses up front before we like before you can turn a profit, like you had to have a truck and insurance and all of those things before we can create a profit.

So there is some time money investment in there that we have to be willing to put in. There is also a learning curve. This is like any skill, it was not necessarily day one that you learn to ride a bike, there’s times that it takes I mean, we talked about like 10 years now like even in the last two years, if I think about like the growth that I’ve experienced and the things that I’ve learned, wouldn’t have even been fathomable.

Like I wouldn’t, you could have like sat me down and told me like what this was going to be like six years ago. And I would have told you, you were absolutely crazy. So there is a learning curve. It’s a roller coaster.

But honestly, like, is it amazing roller coaster. And there are different personalities and different people who are cut out to do different types of businesses. And honestly, I feel that everyone should have something, but what that actually looks like is going to vary a little bit.

And that’s why we’re putting together this really cool resource. If you haven’t seen it already, it’s going to be… it’s not live yet. All right, we’re going to start talking about it. I shared that we were going to have resources on the different ways to make money and things that all these different professions which they would have known starting out and how to get started because there’s so many different ways to make money online. That’s going to be the Money Magnifier Toolkit.

It’s going to be coming soon. And honestly, it’s going to be amazing. So just make sure you’re subscribed. Keep listening to the podcast. We’re gonna start talking about some of these. I’m gonna give you some teasers because I know this resource is going to be game changing for you.

The Money Magnifier Toolkit is going to be amazing to help you figure out if you don’t know already what you would need to be successful having something. I don’t know that everyone is cut out to run their own company. Not that they can’t, but there are other ways for them to make income.

You can do things as a subcontractor, where there’s less… certainly responsibilities, it’s less things that you’d have to juggle that could be more fitting for your personality type and you still get some of the tax benefits as well like we were talking about because it is the 1099 contractor income. Of course, get with your accountant. I’m going to include some resources in the show notes for you.

And let’s see your challenge for today, I want to hear how do you feel about starting a business or a side hustle now? Is this something, where you one of those like “I’ve tried one of those things in the past, never doing it again”, maybe you didn’t even really want to listen to this episode. How are you feeling now? Do you feel more confident in your ability to be able to successfully do this because you have the full picture?

And of course, we’re including resources in the show notes for you. The Money Magnifier Toolkit is not available yet, but I am going to include the link for the Money Masters Inner Circle Academy waitlist. We’re going to be talking more about that soon, I’m so excited for it.

But if you’re interested in the Money Magnifier Toolkit, I’ll just say get on the waitlist for Money Masters Inner Circle Academy because just do it, take my word for it. Do that, make sure to complete your challenge. Send me a message on Instagram, I can’t wait to hear. We’ll see you next week for another episode of the Your Money Your Life podcast. Bye for now!

Thank you so much for listening to the Your Money Your Life podcast. My favorite place to hang out is on Instagram. You can find me at @aimeecerka. Send me a message or post a screenshot and tag me! I love hearing from podcast listeners.

When you’re ready to master your money, go to https://workwithaimee.com. You and I will work together to ditch financial stress and struggle for good with a customized plan that works for you, your goals, your priorities, your life. I’ll see you next time on the Your Money Your Life podcast.

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Aimee Cerka
Aimee Cerka

The Money Confidence Coach - She helps motivated women, like you create the happiness, family life, financial security, and long-term wealth they deserve. Create unstoppable finances so that when the next curveball is thrown your way... You're prepared. Click Here to Learn More

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