by Susantha Nanayakkara

Created on: October 21, 2009

Safety of your earned money as a self-employee

Both self-employee and salaried employee earn money. But the important thing is who can safeguard money for their expenditure? Who is better protected from loosing income as a result of others acts?

Protecting our earned money is very difficult. You can protect it from thieves, friends and relatives with an effort. But your strength may not enough to protect from organizations, which disguised as your supporters. Can you safeguard your money from paying to bureaucrats, bankers or brokers?

When bureaucrats failed in community serving programs and loose money without much outcome, they turn to your pockets using their legislative powers and recover the loss from your tax. Other way is they sell you treasury bonds, which is a selling of debts. More and more debts are created when bureaucrats failed to spend more than their income. But treasury bonds are risk free investment, because bureaucrats have powers to recover it from citizens as various forms of taxes, whether you like or not.

You must deposit your money in banks. In addition to banks divulge your money transactions to bureaucrats, they take charges and interest and take portion of your very own money.

Brokers come to serve you to your face but grill you from back to take as much as possible money from you as it is their legitimate right to take brokerage.

As an employ you have very remote possibility to protect earned money. You pay it to bureaucrat up to 50%. You think of your retirement and save money, part of it is also taken as taxes as your taxable income of your earned money. Really, you as an employ work free during your first several months of the year and start to take your earnings later part of the year. When you do a job, the first person take your salary is those bureaucrats.

Self employs at least paid first then they do their expenditures even keep some money for interest payments, brokers payments and get a tax refund. Although, bureaucrats can turn to them but take from them less than 15% or even zero. But self-employees may earn even more than employees who work for a salary but protect their earnings.

Employees are victims of bureaucrats, bankers and brokers but also victims of managers. They threat you and get more works if you are capable of doing more works. If you are efficient, managers reduce your working hours. They can lay off you if your salary is a burden for them.

Employees are in a very difficult position to protect their money and save it. It needs big effort to get out from his rat race and expand his earnings from passive income from investments. Even their passive income is label as earned income and put it into salary basket to pick it easy as earned income tax. But the same passive income is not taxed in that proportion from a self-employee.

Therefore, self-employees are well protected from bureaucrats, bankers, brokers and managers. They can improve on their income and shift over to a businessperson and investor and reach to the goal of becoming rich early and with more effectively. No employ who earns salary is rich.

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