Return to the Money Saving Tips Forum | Post a Follow-Up

How's your business going: does your kid make more than you?

Posted by joyfulguy (My Page) on
Sat, Apr 15, 06 at 16:55

That title was supposed to end, " ... does your kid make more return on his/hers than you?"

But - you know me - too talkative.

Condense, condense.

How are you doing with your sideline business?

That is, the one that works for you silently, day and night, 365 days a year?

With employees that never b!tch about working conditions, pay rates, benefits ... or steal, take days off sick, etc.

Some employees work for you once - those Dollars (Yen, Marks, Kroner, etc.) that you use to buy food, fuel, vacations, spa or internet fees and other stuff which provide only a momentary benefit.

Others, the ones that you send out to buy a car, tires and other stuff whose value deteriorates rather rapidly, work for you for a shorter period - but you get value from them for a while.

When you invest in classic clothing, furniture, e.g. a table and similar things, the value that they give you endures for a longer period.

When you buy a house, its value goes on for a long time and, in recent years, has often increased, sometimes substantially.

Had you been able to pay cash for the house, that would be a really good deal, for then you wouldn't have to send out a fairly large number of your employees over quite a few years to pay rent on the large number of employees that you borrowed from the personnel house/bank to pay for the house in the first place.

Which is why some young folks buy a rather dilapidated house at a fairly low price, then save as they go along to pay for repairs and upgrades, much of which work they do themselves. Selling it later in order to get a large number of employees, so that they don't need to pay rent on so many employees from the personnel agency when they buy/build their dream home.

A big problem: the government wants a share in all of the income that each of your employees produces (here in Canada, they charge a lower rate on your return on certain kinds of work that your employees do).

Also, the return that you achieve on some kinds of work that your employees do can be carried along without being taxable, as long as those employees stay at that job - sort of like accrued future benefits in a pension plan (but it's your pension plan, not that of the employees).

Oh, joy! In Canada, when you do become tax-liable on that kind of accrued income ...

... it is taxed at only half regular rate.

Another problem: having your employees sit around doing nothing isn't very helpful - they eat.

Keeping dollars in your wallet, or stashed under the mattress, doesn't get any work out of them.

On the other hand, when you put your dollars in the bank savings account, the bank pays you the agreed amount of pay for those employees of yours - but they send them out to work harder for them.

Not only that - your employees that they give back are longer in the tooth (maybe have lost a few) and have deteriorated somewhat in the interim.

Finally, how may your kid be making possibly a better rate of return than you on an equal amount of the same work done by each of her/his employees?

Around here, one pays no tax on income under about $10,000. annually - and few of your kids will be making more than that.

As your employment income is your base income (the one that you aren't about to give up - voluntarily, anyway, in that you like to eat and live in a warm home), the income produced by these employees is in additon to that.

So - taxed.

Often at a high rate - what is called your "marginal" (near the top).

So, more than likely the kid makes more on the work of each of his Dollar-employees than you do on a similar employee's output.

Tough, ain't it?

Hope you enjoy your weekend - thinking outside the usual box, just a bit, maybe?

That's how some useful ideas may come to birth - and grow tall.

ole joyful

Follow-Up Postings:

RE: How's your business going: does your kid make more than you?

My son made my Paypal account dead =( I can't really imagine how did he get a password for it. So now I'm in big trouble. Have any ideas how to fix it??
mail on :

RE: How's your business going: does your kid make more than you?

Hi marksteelman,

I don't have any suggestion to offer to deal with your problem, as I've never had a PayPal account - nor eBay, either.

I think that your possibility of getting a reply to your question may be better if you start a thread of your own, so that people who may be interested in your topic may see it.

Also, you may find a reply over in the "Computer" forum.

While your kid may or may not be making a better return on his invested dollar than you ...

... it looks as though he's more adept in the use of a computer.

As are most of our kids.

I hope that you're enjoying your week, otherwise.

ole joyful

 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!

Return to the Money Saving Tips Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Please review our Rules of Play before posting.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.

Learn more about in-text links on this page here