For those that make a full time income here

Internet marketing is just like any other sole proprietorship in this aspect. The first thing I learned when I started my own business was budgeting. Not having a steady paycheck to cover the bills will quickly make you realize that you need to watch where the money goes.

>quick tip. Always pay cash when out running errands, and carry a small notebook or a check register with you to write down every purchase. You'll start spending less fairly quickly.

For insurance, yes it is expensive, but you can shop around and find good, well-priced group plans that are open to individuals. We use Blue Cross since it works well with our medical needs, but there are others as well.

As for your family and friends, I've spent most of my adult life listening to people tell me that I needed a "real" job. I've ignored them for most of that time, but I've had to listen to it. The only advice I can give is this: If you believe you can make a healthy living by working for yourself, go for it. Set yourself some goals as far as income, and work for them. The vast majority of people have no idea what it's like to work for themselves, and will think that since you aren't going to a 9-5 job you aren't working. It is up to you to stick to your intentions, and don't worry about what "they" say. Of course, if you are married, you'd better listen to your spouse, or you'll be in some serious trouble. However, if you have a spouse that is supportive of your goals and willing to work with you to achieve them, by all means go for it.

Luckily my spouse knew of my aversion to having a "job" when we met, and has supported me in every venture I've undertaken.

Good advice from jkibbles above. So, not to repeat. Here's a few more ideas that work for me.

1. If you're not good with taxes, then use a CPA or tax preparer that has lots of other self-employed and small biz clients. They should help you systemize your record-keeping and write offs. The write-offs or legal deductions being the key. You will want to maximize those. Don't waste time trying to work with a tax preparer that doesn't understand and/or can't help you. For example, you may want to incorporate as an LLC first. Then if you're income is big enough, elect to be taxed as an S-corp. Find a CPA who knows the difference, when, and why.

2. Network with other self-employed people. It nice to be around others who 'get it,' even if they're not in the IM niche. I went through a couple years of feeling awkward around people, because I didn't know how to explain what I did, and why. Then I found it easier when atleast I was hanging out more with small business people. They get that you're an entrepreneur. They're generally more supportive of other entrepreneurs, even if they don't fully understand. They like the fact that you're trying to avoid a W2.

3. Other small biz people will also be more helpful with resources in the community, like who they use for legal advice, tax advice, financial planning advice, health insurance, dental insurance, banking & finance etc. It's easier to find help when you're referred by another entrepreneur. I hate wasting time with a mortgage broker, bank, whatever, who only knows how to think inside of a regular paycheck. So find or build your own network of people and resources who cater to entrepreneurs.

Great advice. Thanks guys.