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Fixed income?

March 7th, 2007 at 07:39 pm

This term is ordinarily applied to retirees and disabilities who receive a government check, but doesn't this term technically apply to salaried workers as well? I mean, if you are earning $30K/yr, you aren't going to earn more than $30K/yr. (annual pay raises and uncertain bonuses aside). This means you aren't going to put away more than $3K/yr in savings (assuming 10%). You also won't see the full $30K because of tax withholding.

I bring this up because people have often told me I need to stop trying to start businesses (too risky), cut back my expenses (which one, the gas or the water or the electricity...?) and just get a steady job. To me, it just seemed more risky to my future to have a "steady" (meaning I could be "pink slipped" on a whim) job. There is risk in what I do, but I control it, not someone else.

6 Responses to “Fixed income?”

  1. monkeymama Says:
    1173299302

    The thing about a fixed income is generally you have no other choice. IT is some kind of benefit - pension, social security, disability, because you can not work...

    A $30k/year job can turn into a very well-paying job over time BUT if you are spinning your wheels in a dead-end job, then sure. I think that is what it comes down to. For many there are far better opportunities out on their own. There are lots of great opportunities in employment too - I have been on both sides - the steady paycheck and a boss who values me (& keeps me through hard times) is far better to me than customers who don't pay and disappear when the economy slows. But it has a lot to do with my personality and my industry - employment fares better for me. But I would never waste my time on a fixed income either... I definitely see what you are saying...

  2. jIM_Ohio Says:
    1173301576

    I agree with MM.

    Fixed income is because a person has lost their earning power. Generally a person under the age of 70 can still earn a significant amount of money. If someone has earning power, I do not consider them to be on a fixed income. They may CHOOSE to be on fixed income (welfare, retire early, disability), but they have earning power to make more money.

    I earn most of my money by day.
    I have recently stumbled on a way to make another 9-20k under the table cash each year. I am using this earning power for a short amount of time. Boost savings, save for some key expenses coming within next 1-2 years.

  3. Ima saver Says:
    1173303329

    Can I ask what you do for a living??

  4. Grant M. Says:
    1173304636

    I was in the military, but I got out and started several businesses. Some have failed, some have prospered. Right now my most lucrative has been a consulting business using my skills obtained through my military service (leadership training mostly - no combat stuff, in case you were wondering). It's creates a decent income, but it's very volatile (I only get paid when I have an active contract). That one is being slowly overtaken by an e-commerce site I run. That one is less volatile, but is definitely in it's early growth stages. I tried an eBay-based business, but could not get the return I needed to really justify the effort I was putting into it. I also did customer service evaluations (mystery shopping) for awhile, but the competition was too high for assignments in my area (that can actually be VERY lucrative if the concentration of shoppers in your area is low). In my spare time, I have taken up candlemaking and will try to hit the craft fair circuit this summer. It won't be as lucrative as consulting or e-commerce, but it will be fun. Basically, I find ways to turn my hobbies and the things I like to do into money-making propositions.

  5. Joan.of.the.Arch Says:
    1173305410

    As long as you are risking only your own well being, I think it is fine for you to go out on a limb trying new businesses. None of the businesses you mention sound like they require huge amounts of money invested to get going and keep going, so are they really eaven risky?

    My husband does some public speaking for honorariums and I do some tutoring. Neither require investments, so I consider them zero risk. No advertising is even required. Just word of mouth is enough.

    There are tons of competitors out there in candle making, BTW.

  6. Carolina Bound Says:
    1173313709

    Most entrepreneurs who have hit it big have failed several -- sometimes many -- times before. If you want to start your own businesses, more power to you! Unless you are making crazy choices, just ignore the naysayers.

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