Rather make $52,000 a year or $104,000 a year? Serious Question.

The last time I had a "REAL" job was when I made $4.65 an hour as a fry cook... that was 23 years ago. I quit, started my own gig & never looked back.

I'd take option 1 without a doubt.

I am greedy.

I would take both options. I would work the full time job and then come back home and work another 8 or more hours doing my stuff.

So option 1 and 2!

I'm living option #1 now, loving every minute -- and moving up! :-)

Suzanne

Without a doubt... option 1.

Even if I make half of that, I would still stick with option 1.

Nothing is more valuable to me than my freedom. I wake up when
I want, work when I want, and I call the shots. Nothing beats that
if you ask me

I would take option #1 ... Actually I did take option #1 and never regretted a second of it!

#1 is the best option but if you have debt or expenses that requires you to earn #2 then you may have no choice.

#1 has no ceiling. You can always work to increase your income. #2 has a limited ceiling dictated by someone else.

option 1 for me.....no doubt.....what price freedom?

I'm in the process of a plan to take me from Option 2 to Option 1. I know I'll make it, I just need to put in the effort and have patience that the plan will work.

I would take option 2.
$50K difference is a lot money. Aftera 30 year work life, that will amount to $1.5 Million difference. Imagine if you asked instead:
Option1: Retire with $0 savings but with fond memories of a happy working career.

Option 2: Retire with $1.5 Million in savings but with just a forgettable working career.

An income of $52K per year with a family is not much to live on these days in most Western big cities.

Also being your own boss is not meant for everyone.

I would take Option 2 every time.

Well, Option #1 is half the money --is it also half the hours (or less)? If so, than I'd pick #1. However, if it was the same number of hours or close, I'd go with #2. Working for myself is something I like, but it doesn't equate with freedom. I'm sure many people who make their living online end up putting in more hours than their employed counterparts.
I'm lazy, so I'll pick whichever option means the most money for the least work I suppose that's just another way of saying whichever pays the most per hour.

Bertil:

I couldn't agree with you more. Under the premise of only earning 52K per year as opposed to 100K per year I think more times than not you will hear option#2.

Now if you put the spin on it that you will work hard at IM or some other venture and have the ability experience and knowledge to create more income while sacrificing compensation in the short term.....well I think we will all choose option#1 then.

Isn't that why we are all here?

Been living option one for over a decade now. The income for option one can be improved, whereas the income for option two will probably not improve much more than inflation adjustments unless you find ways to increase your value to the company, but most don't, they just slog along.

If option two appeals to you the most, maybe IM will never be more than a hobby for you. I think a strong desire to be independent is one of the character traits that lead to success in this industry.

I simply could not live with a time to arrive at work, a time to go home from work, a time to get up and drive to the office........even the thought of it makes me tense up.

People in IM seem to me to be able to see the bigger picture. People believe they are secure in their jobs - but we know it is just a smoke screen security, one puff and it's disappeared.

It's much better for me if I am in control, I am making the decisions, and by them I succeed.

Ruth

I was actually just saying this to my husband the other day. Even though I make way less then I did as an engineer, I have the potential to make way more than I ever could working for someone else.

In fact, my income for 2009 was up 50% over what I made in 2008 - I don't think there's any job that would give you that much of a raise!

Lee

Been doing Option 1 for over ten years as well. I have no interest in working for someone else for any amount of money. I've done my time doing that. Time served and I'm free now. I like money but I'm not in love with money. I wouldn't sacrifice all for money. It is, after all, just green paper and much of what is buys is just stuff.

I gave myself a 20%+ raise this year!

Suzanne

I already DID take option one - I quit the option two high-paying, stressful job in order to take option one six years ago. I'm never going back.

If you can make $1,000 per week in your own business, you have most if not all of the ability to make $10,000 per week.

Depends on where you live. Here in Oklahoma City the obvious choice is number 1. It's cheap here. Homes are cheaper, etc. And the WEATHER SUCKS TODAY even another reason why working from a home office is better.

Most definately option 1!

I have never been able to work under someone elses comman, probably a result of having too many abusive boss's when working through college.

Ones independance means more than money. Independance and freedom such as option 1 presents gives one complete control over their life, (sure they will work hard) but that sense of acheiment and the prospects of what the future holds is magical.

Option 1

I believe working for a particular company gave me an anxiety disorder (just my assumption). I would live on the street before putting myself in that situation again.

No question Option 1. I've been working for myself for years now and can't imagine having to report to a boss again. Gives me the willies just thinking about it.

I've been in the option 1 camp for as long as I can remember, only time I worked for someone else was if I had to start over again to raise capital.

HOWEVER... on LinkedIn a head hunter offered me a job, a contract job, doing what I'm doing now but for a Fortune 100 company... I'm thinkin hard on this one.

It'd look pretty good on my portfolio (resumes are for sheep, wolves have porfolios)

I'd have to fight traffic on south bound I270 (horrendous Washington DC traffic corridor)

Job offer was enough to keep me interested, contract was only for a year so it's not like I'd be signing my life away.

No health insurance though

LinkedIn is, it seems THE place to be if you want option 2

Option 1... as almost everybody!

I would consider option #2 in the past, but when we start living the internet lifestyle it's impossible to leave it . Today I know that my freedom has no price. Offer 1 million a year for option 2 and I still choose #1! (just kidding, obviously. In this case I would work during the first year and then retire . I know, I'm the laziest guy in the world!)

I choose option 1.

Most people on this forum are going to give that answer, but this is a forum for entrepreneurs. That's a pretty major sampling bias.

If you asked random people, my guess is that you'd get an overwhelming majority for option 2. Most people can't do without the comfort zone of the supposed financial security that a job offers.

Good topic, Steve, thanks.

For me it's option 1 unless the job in option 2 is a real delight: 80%+ of the time doing things I very happily enjoy and can do well, in a good situation with excellent people who are ethical, nice, and skillful. That would be so positive that I'd finish the day with plenty of energy to do my own thing on the side. But I've found from unhappy experience that a "just a job" depletes me so much that I don't have energy left over to enjoy that extra money!

Chris

P.S. David, if you're not already in DC and the contract is less than a year, then any place you rent to be close to work is a tax-deductible expense. Maybe you could get close enough to the gig to not have to fight traffic?

Yep #1 as well. I never want to work for anyone else except myself again.

Don't have an option, stuck in option 2 but only at option 1's wage. But thankful I have a job in these times. Working on getting option 1 to where it is an option.

Of course, I'll choose option #1.

I think, most of us will choose option #1, if we have that sort of options.

In reality, those that have been an employee for ages would want to have their own business (online/offline) IF they have a lot of funds/savings to sustain their way of living while establishing their own business.

Sad to say, most workers/employees have only enough savings for their day to day expenses (food, schooling of children, etc.) and don't have an option to be their own boss.

If you have children... it will always be option#1.

The freedom you get with option 1 is of far greater value than the double pay! You can use your freedom to increase your income, where it is a lot harder to climb the corporate ladder! At a time the income of option 1 will overtook the income of option 2, you just have to work towards it!

definitely option #1. I don't know about you but $1000/week is more than enough for me to live on. besides, why sell your soul to an employer and risk getting laid off when the economy crashes once again?

Unless option #2 is just a really fun job doing something that I really enjoy and normally do for free (which I doubt exists), then there is no contest. It's gotta be option 1.

I really doubt you are going to find many people that take option 2 on this forum. If they did, they probably wouldn't be here in the first place.

Working the traditional 9-5 job just sucks.

I don't think I could ever go back to it. It's just too soul-crushing. I felt like a zombie just waiting to get out of there everyday. I still have no idea how people do it day-in and day-out. Life's too short.

#2 (presuming those figures you quote are actually the case)

Here's why...

Using 50% of the earnings (the difference between the two options) I would hire somebody full time to grow an online business WAY beyond the figures in option 1 and 2.

Due to the fact that I'd grown a BUSINESS (with employees) I would then have various options...

1) Join the company and have a hands on role - continuing to grow it

2) Continue working a full time job and put the salary to good use (investments, growing the biz)

3) Stop working altogether and have minimal input in the business - while still earning from it.

The fact that you've managed to grow a business from scratch, with employees and hardly any input from you means that you'll realise that you don't have to be tied to it - you'll be a better business person, and you'll be able to start more businesses from scratch, with confidence and experience.

The end goal is FREEDOM, for the long term. Growing a business allows you to do this... Making money online, does not (in most cases) because it requires you to do it yourself most of the time.

=== EDITED TO ADD ===

If you have the resources (ANY resources) that you can invest into growing a business, and you are serious about doing so - you can do so while continuing to be secure in your job.

ESPECIALLY if you have responsibilities.

We all want to be successes, some people take the leap (leave their job) and are successful. Most won't be successful... ending up spending all their savings (and probably their credit line too) on living expenses, being forced back to work, and ending up back where they started - having wasted maybe a couple of years and lots of money in the process.

This is not me telling you that you should stay at a job you hate, but I am saying that you should think carefully about your OPTIONS before doing so.

... I'd originally started a new thread with this which was (fairly) deleted - I should have put it in this post.

Option 1 of course....and we can still leverage and make it bigger!

Cheers,
iYingHang

Option 1 simply because for me freedom > wealth...thats why I don't have dreams of running a 20 mill. dollar/year company or even 10 mill. dollar/year company.

It only requires you to do it at the beginning, after that you can go the same route as you said...hire people to run it for you with minimal input from you.

The way I see it is that you can get to the same point eventually just that by picking option 1 I can say "Screw this, I'm going on an RV Tour for the next 3 months"

I went with option 1 last year and couldn't be happier...it's not all about the money but the quality of life, I do my own hours as and when I please and love every minute of it! Nice post, thanks!

Option 1 everytime!

Remember, if you work for yourself you can always concentrate on increasing your profits every month or year.

So you should NOT just sit back and earn $52k per year, you make sure that the next year you earn $80k, then the following year $150k etc

Then after 5 years of earning $100k profit you sell for $500k and retire ... or start a new business.

Rob

As long as I didn't have any overwhelming debt and a pressing need for that extra income at the present moment, I'd choose option #1 in a heartbeat. Though the pay would be less, I'd have a lot more freedom and be able to work from home, or basically anywhere I choose. In addition to that, the income from option #1 is definitely not set in stone. I'd see $1,000 a week ($52k a year) as just a starting point, and I know that if I work intelligently and diligently at my business it will soar to great heights, whereas with option #2 I really don't see much opportunity for a significant increase in income over the years.

Option 1. Not only is there little limit to what you can achieve, but freedom is priceless.

self-emplotment tax is 7.5% MORE than the 7.5 existing SS, Comp & Medicare tax an employee pays. That nets that $52k to $44,200 right away. If you had a great accountant or were able yourself to break even on paper, that is 3683/mo.

My mortgages are higher than that.

Not to mention any car payments, gasoline, insurance (car, house or renters, life, business, etc.) phone, electric, gas (if applicable), TV, food, average US health-care is $619 a month (average including plans employer pays part of so it would actually be higher in senario #1 and average lower in #2), average cost of every kid you have that goes to college for tution alone is $159/month (spread out over 22 years... per kid! Not to mention room, board and books.) Any pets? average: $500 a year per dog and $400 a year per cat (mine have cost me more than the average, maybe you'll get luckier as I tend to take strays.) Dry cleaning? coffee? cigarettes? Drink a beer now and then? Eat out? Ever see a movie?

Everything has it's cost. The attraction to #1 I see is that a scenario given, that limits the income of #1, is unrealistic and in the long run would most likely produce MORE income than #2, even more net income. If choosing option 1 DID mean never making more than 52k, it would be a disservice to my kids to chose it. (Even though I wouldn't mind if I had to live in a trailer to do #1, they may not feel my choosing to be unable to pay their college isn't me making the best choice... especially for them.)

Again, pay-wise, I suspect the exact opposite is true, at least from my limited experience.

Option #1 without doubt!

OPTION ONE!!(EVEN FOR $40K) One of the things that makes you wealthy is controlling and owning your own time. you can't put a price on that kind of freedom.

with all of that time and a little dedication how soon would it take a semi intelligent person to surpass option 2?

More importantly what could you do with all of your time on your own?

-invest in self development
-invest it into a cause that you believe in
-invest in the development of your family (how much of an impact would that have and what is it worth?)

D#%*!! I gotta go. this has sparked my dreams!!!!!!!!!!! BACK TO WORK.

#1 for sure. I will never have a job again, I'd rather live in a cardboard box.

Option #1 even if I have to struggle the first few years (which is exactly what I did in the beginning!) Remember that this $52k a year is just a starting point, and if you work hard at it FULL-TIME (and not as some sort of a part-time "hobby"), there is every possibility that you could hit 7 figures in a few years. You get the freedom to work as hard as you choose, especially in the beginning, AND get paid exactly what you're worth without having to deal with a condescending boss. What's not to like??

For me, Option #1 no doubt. Dove in for it years ago and the only way you could pay me to look back is if it was for like a million dollars a year...and I plan on making that with Option #1 eventually anyways so you might not even have any luck then!

It's true sometimes I spend just as many, and even more, hours working for myself but that's not a constant so it's all good for me. Sometimes I work less, sometimes I work more...but i'm working on working less AND making more so Option #2 isn't even an option.

Screw corporate America, they could care less about you, you don't have the flexibility you have working from home, you can't work in your PJs, there's usually some sort of ceiling on growth & income, you can generally only make more money/get raises every 6 months or year, you have to get some sort of approval (or use approved time) off if you're sick/want to go on vacation/want to attend kid event/want to do something else, they have requirements, you have to drive and fight traffic, you have limited lunch time usually, you have to be there at a certain time until a certain time, you have to follow someone else's rules, answer to someone else....I could go on AND on AND on!

So I save money on work clothes, save money on gas, save money on travel "time", can give myself a raise whenever I want by finding a new way to generate some income, am my own boss, follow my own rules, go where I want when I want, never miss a school/kid/sport event EVER, work in my sweats, have as long of a lunch as I want, answer to the woman in the mirror...I could go on AND on AND on.

Did I mention I'd choose Option #1?

I would probably take option 2 to be honest lol

The thing is.. option #2 IS NOT a whole lot more money once you factor in:

1. The gas to get to work.

2. The business attire required for a working environment (you can't wear jammies to a $100K/year job, generally speaking)

3. The upkeep on the clothes for the job (dry cleaning, if suits).

4. The misc. money you blow when you work in the corporate world (coffee, out to lunch, dinner, etc. - things that go UNaccounted for, yet you'd not do if you worked for yourself)

5. Upkeep on said vehicle.

6. If no gas for vehicle, then bus fare, taxi fare, etc.

You know, there was an interesting piece done on Oprah several years ago. A gal realllly wanted to stay home with her children but she felt she couldn't "afford" to stay at home (from a monetary perspective). She and her husband sat down with a financial adviser and worked out all of the incidentals related to working outside of the home (like the ones I named above) and, it turns out, they actually came out ahead with her quitting work and staying at home. She cried her eyes out, regretting all the years she had missed staying at home because of the age-old myth of "two incomes are always better than one!". She then immediately resigned her position at her employer. A follow-up on them a year later and they'd never been better-- financially, emotionally, etc.

There's really not as large of a monetary chasm between #1 and #2 as it looks on the surface. In fact, I'd almost say it's negligible.

Warmly,

Brandi

Brandi, excellent comprehensive post about all the benefits! I've been working from home for slightly over 28 months now, and sometimes I need to be reminded of all the advantages of doing so as it can be so easy to take them for granted once you're used to this type of a lifestyle! The monetary issue is really a non-issue if we really work hard at your business and grow it over time, if anything our income from home would most likely exceed that of a job if we took it seriously. There are also the intangible benefits like emotional peace of mind and much less stress, among other things. I certainly know why I took the plunge for option #1, and I'm steadfastly sticking to it!

For me, I will take option 1 in as much I make 52k yearly, things are in control cos no boss no job insecurity since i will manage the risk myself. freedom nothing can be be compared to freedom

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If education and experience weren't factors, I'd take Option #2 as I work on Option #1. I'd use extra money earned from Option #2 to fuel Option #1, to go above and beyond the capacities of Option #1.

Once I comfortably set up multiple income streams via Option #1, I'd leave behind Option #2 and never look back.