Episode 17: Taking the Leap and Going Full Time


#1

How do you take your side job full-time?

This week, Redd (http://www.fiverr.com/reddhorrocks) and Adam (http://www.fiverr.com/twistedweb123) talk about how they handle covering things a regular job would cover like insurance, taxes and budgets with a variable revenue stream.

This is the final episode of 2015. We’ll be back with new episodes on Jan 5, 2016.

This episode was edited by: http://www.fiverr.com/dansha
Jingle by: http://www.fiverr.com/customdrumloops

Transcript for this episode: http://blog.fiverr.com/?p=20565


#2

Nice stories, like them :slight_smile:


#3

Happy holidays to you guys! Keep up the good work!!! LOVE YOU!


#4

Thank you so much guys for your great tips and information.


#5

Thanks for an Inspiring Podcast…Even iam planning to quit my other jobs and take Fiverr Fulltime :slight_smile:


#6

This was a good episode. One thing that Americans can do for taxes is start an S-Corporation, corporations are able to deduct certain taxes that individuals might not be able to deduct. For example, a corporation can deduct rent, internet bill, gasoline, mileage, food, cable or Amazon Prime bill (you need it for inspiration), etc. A good accountant can help you out.

Another thing is you’ll need to pay social security taxes, if you want to collect that benefit someday. A lot of freelancers forget to do that, and it can hurt them later on.

Just remember that before you do Fiverr full-time, make sure you’re making enough money to pay everything and then have some left over. Move to a cheaper city or State to save on rent if necessary.


#7

hi guys, my name is John, and i have an account here as johnmgalla7. i am living in Tanzania and i get a big problem withdrawing my funds from my fiverr earnings. i was hopping to get a way to communicate with the fiverr help desk. as i cant use pay pal as it has not started operating here in Tanzania yet…help guys
appreciate thanx


#8

Nice one


#9

I can help you in this case…


#10

click here: customer support


#11

i hope i can take Fiverr as my fulltime job


#12

great merry x 'max…


#13

I really enjoyed listening to this podcast. I took so much from the conversation. I particularly liked the idea of living off your Fiverr income before going full time.


#14

great :slight_smile:


#15

Nice Stroy


#16

Have you tried Fiver revenue card? Or you can sign up for MasterCard through this link https://share.payoneer.com/nav/6cEuUbF8ffEnzjk4hc9ZuHKrLc65znX4oK__zQlwyQ-YT0cRfNtYsOQC2kkBA0KtdV-4jvy_cEc7YQHNPC75Eg2 first and then use it to withdraw with.
Good Luck.


#17

Nice :slight_smile:


#18

Glad you enjoyed the episode!

That’s great advice. As a self employed person in the UK, we can actually deduct certain taxes from working from home (although there are a few rules).

To make the UK calculation, you first define the room you work in and what percentage of time that room is used for working. If a room is used 100% for work you need to pay business rates so the smart option is to split the room purpose. For example, I have an office/entertainment room which consists of my office but also a couch & television.

I factor that I use the room 80% for work and 20% for leisure. Once you have that calculated, you then work out the overall area of the room for your house - this can either be ‘advanced’ in the sense that you work out the square footage of each room or alternatively it can be more simple by just counting the rooms as single entities. I personally just count the rooms.

My house has has 6 rooms. Under UK law I can claim back any house expense which factors into my business (except for telephone or internet unless they are solely for the purpose of the business). So, as an example most home based businesses can claim electric & private rent (not a mortgage).

To find the expense figure (in the UK) you just run the original expense through the formula of:

a = (100 / no of rooms)
b = business use percentage / 100
c = (expense / a) * b

a works out the room ratio/percentage based on amount of rooms in the property

b works out the percentage in decimals for the room use

c works out what you can claim back.

So, say I have 6 rooms, 1 is used for 80% business and I have a £1000 rent, the formula is:

100 / 6 = 16.66666% (round to 16%)
80 / 100 = 0.8
(£1000 / 16) * 0.8 = £133

So, of that £1000 rent bill I can claim back £133 per month. That may not seem like a lot in that scenario but it soon adds up (especially when you consider you will have to pay rent regardless if you worked from home or not). So over the course of a year you would be able to claim back just over £1,500 in expenses for your rent.

I’ve found, when working from home and especially when online, calculating expenses and claiming them back is HUGELY important. This is because it’s so easy with marketplaces like Fiverr to think “Well, all I do is log on and deliver work which only takes my time and skill - I don’t need to pay to offer my services so I have no expenses”. In that scenario, you can often be stung because an at-home business has few expenses which are the same as a storefront and many people fall into the thinking that they don’t have many expenses. So, when tax time comes, they pay an inflated amount compared to if they did indeed have a store front.


#19

Great Tips for freelancers… And thanks you two sharing these tips with community…


#20

Thanks for sharing :slight_smile: