It’s an important note to always keep in mind where when you earn income as a self-employed individual you need to factor in the amount you will have to pay for taxes as an example. However, there are time where you may have other expenses that will eat up that large pay cheque which got me thinking the other day. I essentially earned over $5000 for these jobs recently which sounds like a lot of course as it isn’t bad for work. However, I knew that wouldn’t be a full take home pay at the end.
I first had to pay a person that was involved in setting the whole thing up which costed about $800. Afterwards, there is actually a union in this business that I had to pay a fee for since I did a lot of work and needed to join it. That was another $1200 or so. So while the pay was still good, you can see how much with just those alone substantially decreased the final amount to the point where if you are one to just spend money with the thought of “I just made $5000” and placed it as a deposit for a car as an example you would sure be in trouble.
Sounds silly, but people do it all the time for smaller things such as seeing that $5000 and then the next day dining out for $200 at a restaurant or something because it looks like they have so much money. You should remain disciplined until you are sure all fees and expenses are accounted for. Let alone the fact that just spending what you earn right away on non-necessities is a bad habit as you could potentially be using it as a way to make more too. Or say, invest it into a home that you own if you don’t have one as of yet.