There are many reasons you might want to start a home business. Everybody can always use extra money! There are many possible reasons for this. You may be under-employed. You may be earning less than you need to keep up with the cost of living as your company doesn’t believe in cost of living increases.
Another possible reason is you may feel you need to pay off some of your bills that are costing you twice as much because of the accruing interest. You may have some medical procedures that require large co-pays or deductible. You may need to replace some high cost appliance in your home or have emergency repairs. You should have some money put away for that ‘just in case’.
A major reason to consider is that it is a very good idea in these uncertain times to have a substantial savings account in case you lose your job or main source of income. It may seem like there is never anything extra to save. Even if all you have is $5 – put it away. On the fun side, you may need some extra money to buy a high ticket item, or take a vacation. Saving money is a good idea if you are starting a business as you will need to survive while you are developing an income.
In any case, a home business can be just the ticket for you.There also may be good tax benefits when you have a home business. If you itemize your deductions, you can claim a percentage of your expenses for housing, utilities, insurance and other costs. These are in addition to the deductible expenses you incur in running your business. Always check on the IRS website yearly as the rules may change, to find out what you are entitled to deduct. Always be sure to keep all your receipts from day one in case of an audit.
Your home business can be done in your spare time. If you need a second income, you will find that coming home after the day job and logging on to the Internet is much simpler than running from Job A to Job B with all the traffic and stress of a double commute. Although you will need to focus when you are working at home, it is so much better that you are there with your family.
If you really like what you are doing in your home business part-time, and have had some success, it is likely that you will want to quit the day job and just work from home. However, it is definitely not recommended to quit your job until you are secure in the knowledge that you have completely replaced your income from your employment.
On the downside, people that are self-employed do not have group medical insurance or other employee benefits like pension, etc. You therefore need to consider these costs. Take your time and develop your business. Be sure you know what you are doing before taking any drastic action. If you really want to you can sure do both the day job and home job at the same time and rack up the bucks!
