Self-employment may not be as much of a leap as you may think. A hobby you are passionate about and some entrepreneurial spirit are all you really need to start your own business. Check out this example of one of our clients:
Perry & Michelle Kamboris — Mixing Love of Dogs with “Self Employment”
Perry and Michelle Kamboris* were from a small Midwestern town and liked to go boating at many different lakes and reservoirs with their two registered Husky dogs. The couple loved meeting new people and making friends from all parts of the country. After learning about Money Mastery Principle 9 and the significance of Schedule C, the Kamboris’ immediately applied this new information to their travel lifestyle. They realized that their knowledge and interest in Huskies, along with their love of travel, could be turned into a “self-employment” business opportunity.
They arranged for a referral fee with the same person from whom they bought their dogs to begin promoting the sale of the Husky breed while on their boating trips. They then took pictures of their dogs and prepared an inexpensive advertising flyer that they placed on all windshields of the trucks at the boat docks wherever they went boating. The response was overwhelming! They not only made some money on the referral fee, but because they were running a small side business, they were able to deduct the veterinarian bills on their dogs, travel expenses for their boating trips and even the food for their Huskies on Schedule C. Veterinarian’s bills alone for their two dogs averaged $300 each month and the travel expenses to various lakes and reservoirs were sizable. Combining these Schedule C deductions with all their other deductions, Perry and Michelle began saving $300 on their taxes each month. By putting this saved tax money into a retirement savings plan, the Kamboris’ will have nearly $178,000 extra interest income in 25 years simply by forming a viable small business.
“We were thrilled when we actually saw the results of our actions on paper,” said Perry. “We had no idea that developing our hobby with the dogs into a little part-time business venture could bring such valuable dividends. Plus we love going out on the boat and meeting new people anyway. To us it was a no-brainer!”
*Names have been changed to protect privacy.