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This blog is all about all the things that make me up. I am a Mother, I am a Pagan Witch, I am a Wife, I am a homemaker, I am a student, I am Spiritual, I am a Teacher, I am Liberal Hippie, I am a Voter, and I am extremely opinionated! Plan to see it all! If you don't like what you see, feel free to leave! However, chances are, if you stick around, you'll find more to love than hate!


Monday, January 27, 2014

The Cost of Working...

 Over the years I have done it ALL!  I have done the 9-5 job thing, I have had home based jobs and home based businesses and now, I'm working to start my own business. Because of all that, I belong to quite a few different types of "home based work" groups.  At least once a week I see people asking questions looking for ways to work from home.  Inevitably all the women with home based businesses jump on these posts attempting to recruit new people for their company and their teams.  And then there will be posts from the skeptics that believe you can only earn money if you go out and get a job, and work for someone else 40 hours a week...  I have heard all the excuses and all the myths about working from home. What I want to talk about right now though is one of the many pieces of mis-information out there. The idea that you should never have an investment to make money...

This idea comes from a real and understandable fear of being scammed. There are many many scams out there and trust me, even I have lost money to them. So, I do understand this fear. However, any small amount of research on a company or product will get you an understanding of it's legitimacy. If a company asks you for money to work FOR them, or for them to give you information, chances are, it's a scam. If a company can not provide someone to talk to you one on one, chances are, it's a scam. 

However having a start-up and overhead fee alone and in itself doesn't actually constitute a scam. In fact, ALL jobs have a cost! Every single one of them! If someone tells you that it's free to work, chances are, they have never really thought about what they are actually paying to have their job. 

Here are some great examples of what I am talking about:

Work Outside the Home:
My husband works 40 hours a week outside the home.  His "start-up costs" to get the job he has now were around $350.  Now, he has an average monthly overhead of around $75.  Now, chances are you are wondering why he is working for a company that is costing him so much - It must be a scam...  No, it's no scam. He works for a very legit company, making soil and other agricultural products.   

So, why does he have an overhead and start up? Well, when you start a new job outside the home you have a cost for new clothes, shoes, office supplies, background checks and in some cases a parking pass... For my husband that included buying new steel toe boots ($100), a physical ($75), drug & background clearances ($150), and other new clothes.  Now, what about that overhead? Well, lets add up his cost to work each month. He usually walks to work, so we don't have to worry about gas, but on days when he is needed at the companies second location, he has to drive or take the bus, both of course cost a few dollars, but we won't count that here... He works four 10 hour days each week (sometimes 5 or 6 days) and  he needs to eat lunch while he's there. With an average cost of $5 a day, he's paying about $80 a month for lunch. He also has to pay for his uniforms each month, which is an additional $20.  So his monthly overhead is about $100 in total. 

However, I want to also note that that $100 a month doesn't take in to account things like additional clothes - he works outside with heavy and dangerous machines, so he needs to have good boots, warm gloves, sweat shirts, a good coat, long underwear, etc...  And he also has an "office" job built in to what he does because he's a supervisor, so he has to pay for things like pens, staples, and other office supplies as well.  His bosses also tend to email him his work orders and call him with orders & info all day and night, even on days he doesn't work. So he has to have a good smart phone plan too. Then there's coffee and "hot hands" to help keep him moving even when he's outside in sub-freezing weather at 4am.  If you take all that in to account there is around an extra $60-$75 (some months more) a month tacked on to the $100... 

As you see, even the average 9 to 5 JOB has start up and overhead!

Work At Home Jobs:
We have all heard over and over that work at home jobs are all scams. You can't make money from home. Well, this just isn't true. There are hundreds of very legit companies that are willing to pay for you to work from home. However this doesn't come without cost either. In most cases these companies are willing to pay you on a per-hour basis for phone work or a per job basis for transcription or some kind of typing work. With both of these there are going to be rules and regulations from the company. 

But what cost could there be? While it is true that you should NEVER be charged from these companies for the opportunity to work there are many legitimate costs that do come with working for these companies. Most of them will require that you purchase a specific headset for phone calls or that you have a certain program. These will cost you some money, however it's usually going to be about only $20 or so. The other major cost that tends to come up with these companies is that in cases where you are required to be on the phone (customer service or telemarketing) you are usually required to have a quiet background. This means that although you are home, if you have small children you will need to hire someone to care for them while you work. Sitter costs can be anywhere between a few dollars an hour to the $20 a day range. There is also an occasional cost of drug screens or background checks with these companies as well. 

Plus, you are going to be required to have a home phone line and Internet connection with these. So, cutting the internet to help save money, isn't an option here. This cost is also one that should be added in when figuring out the cost of a home JOB.

Home Based Business:There are thousands of home based business companies out there. These give you the opportunity to own an operate a home based franchise. Although the word franchise is rarely used to describe them, that's exactly what they are. You will always have some kind of out of pocket cost with these, however the difference with a home based business and a home based job is that with a business, all and any costs you have (even assumed ones) are tax deductible, so you can actually save money on your taxes just because you have a business.

But what are the costs and why are they there? Well, each company is going to have different costs. But I can still explain why they are there and what they are for. A start up cost with the company will cover a number of things. Usually it will cover the cost of paying someone to put all the legal paperwork of adding you as a franchise owner. It will also cover the cost of any supplies you will need to start your business. If the company is in sales of a product you will usually need to pay for samples, catalogs, order forms, and websites... All of these things cost money. You will also have some kind of overhead. Now, if the company itself does not have a monthly or yearly overhead cost, that doesn't mean there won't be one. Eventually you are going to need more samples, brochures, paperwork. You will also need things like office supplies, business cards, flyers and advertising. If you have a website, this two costs money. 

Now, as I said all the costs with a home business will actually come off your taxes. While this is also the case with a regular job and home based job, there are many more things with a business that become deductible. A great example is gas. If you have a car and a home business, you have the right to keep track of your miles used to advertise your business. SO, if you go to WalMart to hang flyers and do your kids back to school shopping, you have the right to report those miles to the government as a business expense... Come tax time these miles will add up and you pay WAY less in taxes. This kind of thing just can't happen with a job! 

Business Franchise:
Out of home business franchises such as Papa John's or McDonald's are going to have a HUGE cost to start, to keep and of course to run. In most cases they will also earn you a much higher amount of money, but not in all. The average Subway, for example, brings in an average of only $25K a year. Not really the "big bucks" that most people would expect out of a franchise. And some of them can cost tens or even hundreds of thousands of dollars to start.

Mom & Pop Business: 
This is a business that you and/or your family start. From Family Bakeries to Small Retail Shops, they all have costs. Of course they will each come with different and specific costs to have and run. Building or Space rental or mortgage, supplies for basic business to the products to line the selves, employees to electricity... There are many many costs to a mom and pop shop. But they do come with the same business related tax deductions as home businesses, so although there is a great cost, you will earn some or most of it back.

As you can see, all jobs and or businesses carry a cost. Be it the regular 9-5 or a work at home opportunity you come across online... They all have a cost! Expect it! If you are one of the thousands of people that are looking to work from home but are afraid of being scammed and keep hearing that a job should be free... It just doesn't work that way! You CAN make money from home but as with any other opportunity it will have a cost. 

Your best bet is to find a company that you think you could like. Talk to a real person and check them out on www.RipOffReport.com You will get straight to the point as to who is and isn't a real company or opportunity. You should also find out if they are partnered with any other companies or organizations that would prove their legitimacy. And if all else fails - log on here and ask around! 

No matter what you choose, good luck! And Gods Bless!

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