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Fulltime Job Weekly Earnings

Discussion in 'Business & Tax Advice' started by Jessco81, Aug 24, 2016.

  1. Jessco81

    Jessco81 Newbie

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    Hello guys!

    I know some will say this isn't the best place to ask. However, I know some of you have a lot of experience with taxes, owning businesses etc. I have a decent business running right now and making me money. I do diversify with other online businesses. I would like to give up my 9-5 job and put more of my effort in my business.

    What would you say I need to make a day to make what I make at my current job? Here is my current job breakdown:

    Weekly Gross: $975
    Net: $680 - I pay for health insurance and taxes taken out
    Commute: $408 a month - train cost, parking

    I live in Massachusetts

    Please leave a reply:)
     
  2. Lunaaa

    Lunaaa Jr. VIP Jr. VIP

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    You want a couple different sources. So if one stops working. The other one needs to be able to support you
     
  3. Nick Walsh

    Nick Walsh Newbie

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    Can you please tell me more about your business.
     
  4. Jessco81

    Jessco81 Newbie

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    Thanks, but if you look at my post I did say I have other income online.
     
  5. THECORE1337

    THECORE1337 Junior Member

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    $408 on commute ... WHAT!!! I live in a small town where there is no bus no train just drive like 5 to 10 min to everything so that just seems like a crazy high expensive. Everything said and done your well paying job is actually not so well paying.

    Honestly results will just depend on what you put in. No one has a blueprint for you. Just go for it and see what happens.
     
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  6. Jessco81

    Jessco81 Newbie

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    Thanks, yeah it's too expensive. I work in Boston. Just hoping someone who owns a business can give me a rough estimate of what I need to earn a day with business taxes taken out etc. for what I make at my current 9-5.
     
  7. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    The dollars won't be very different from your weekly gross X 4.33 for a monthly nut.

    I'm not familiar with State taxes in MA (we have none here in Florida) but you would see how much FICA is taken out right now and double that as to an expense as that is your SE (self employment) tax.

    Currently you are paying 7.65% for that and it would go to 15.3%.

    You'll be eliminating the 408.00 a month of commuting expense and your SE tax is going to be a tad more than that.

    Your current take home monthly after health insurance, taxes and commute - 2536.40 (Weekly net X 4.33 weeks - 408.00). Your current gross is 4221.75 (975.00 X 4.33 weeks) and your FICA is 322.96.

    If you generate the same as your current gross = 250.00 a month you'll come out close to what you are making now on your day job.. Taxes and health insurance remain the same with that 7.65% bump in taxes going from 323.00 to about 646.00. So a pretty strong number would be 4500.00 a month.

    That being said, I would not kick my day job to the curb for that dollar amount as you are going to want a cushion as a self employed IMer on a full time basis and I, being more conservative than most, would wait until you were comfortably earning an extra grand a month as this industry can be a little fickle when it comes to getting paid for all you do.
     
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    Last edited: Aug 24, 2016
  8. Jessco81

    Jessco81 Newbie

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    Thank you!!! That is a great breakdown:) what do you mean current gross = $250 a month? Would I pay quarterly taxes or yearly SE taxes? Also, do you mean $4500 month gross or net to be comfortable? You are great:)
     
  9. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    You have to pay quarterly and you can get a local bookkeeper to set that up for you... it is pretty simple.

    4500.00 Gross to be about the same as where you are now in take home pay but really take into account what I said about the 1K a month cushion before making a decision as that matters in IM.

    The current gross = $250.00 should have been, your current gross - $4250.00 a month. I missed the 4 by a mile it seems, sorry for that.
     
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  10. Jessco81

    Jessco81 Newbie

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    Great! So $4500 gross and $1k monthly net is doable in IM. Last question, where do self employed people get their Heath insurance for them or their families? I'm pay about $520 a month with family insurance. My husband has a job but his insurance is expensive. Thank you
     
  11. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    For health insurance that is really State by State so I'm useless there. Call around to some local insurance providers and see what options you have... that is not going to be fun because it will be hard to compare apples to apples.

    520 a month is not bad at all for a family plan though - perhaps you can contact them and get folded in. I believe that used to be called Cobra but I've been out of that world for ages and am just relying on a guess.

    I've pay 520 a month in a heartbeat if I could and it is just my wife and I.
     
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  12. SEMWORLD

    SEMWORLD BANNED BANNED

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    I have been at he point that you are today. And there are usually many questions that you need to wrestle with. Just be sure that you are making the right decision. At times, when your formal job is not stressing you or conflicting with your business, then you can be able to do the two at ago. In so doing, you will also be boosting your income.
     
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  13. FormerBoxer

    FormerBoxer Regular Member

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    Can you go partime for the extra money to fund your IM expenses? @BassTrackerBoats gave a great beakdown. Your gross salary is about 50K a year... that is a big loss if you can't fill the void with IM income. So @BassTrackerBoats she would need an extra 5K a year to make what she is currently making? Also, she could gross $4500 but she could take home only 1K a month profit... I saw that plenty of times with people selling websites. People are making 50K a month so yes it doable... Good luck!
     
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  14. Jessco81

    Jessco81 Newbie

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    I understand what you're saying about getting a part-time job. However, I do have my husbands income. Yes, losing 50K a year is no joke for us if something went wrong with my online business. I'm planning on doing offline as well to supplement my income. I do take a lot more then 1k net a month doing IM. l feel like I can make a lot more focusing on my online business full-time. Yeah, I call it a 9-5 just like everybody else but in reality it's more like a 9-7 job. So, if you break that down I'm working a lot for 50K where as I can make a a lot more doing IM.

    My only thing is I don't want to use savings, 401K, credit cards to fund some of my IM projects... if I have to take that risk I will!
     
  15. gling2

    gling2 BANNED BANNED

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    that is a nice weekly sum!!
     
  16. bossofthebosses

    bossofthebosses Jr. VIP Jr. VIP

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    Instead of leaving your job, why don't u hire someone to do the more work in your business? U can hire a Filipino, Indian or Bangladeshi VA at 200$/month.
     
  17. Jessco81

    Jessco81 Newbie

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    That is true! I'm just to stressed out at work and it has been my dream to become self employed as a internet marketer. Will being self employed be stressful... Absolutely!

    I'm just about making the same amount of money online and it will give me freedom with my family. Sometimes you have to take chances and I'm a risk taker.
     
    Last edited: Sep 17, 2016
  18. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    Can't fica taxes be reduced(amount paid) by setting up a corporation and reimbursing expenses instead of paying everything in a salary?
     
  19. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    seond that... and don't ive up your daytime job before you at least make $4000 / months in profits!
     
  20. ZlatanTheGod

    ZlatanTheGod Jr. VIP Jr. VIP

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    Nobody will believe this..
     
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