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When It’s Better to Follow Your Dreams Than To Follow Your Salary

March 21, 2022 by Tamila McDonald 1 Comment

follow your dreams not yur salary

When most people start a career, they hope they can earn a solid income while pursuing their passions. However, there are situations where a dream job simply doesn’t measure up financially to an alternative. In that case, professionals often have to decide whether they want to follow their dreams or a high salary. While there are pros and cons to both approaches, there are situations where doing the former is best. Here are some points to consider.

Money Can’t Buy Happiness

One of the biggest reasons to pursue a dream over a particular salary is that money isn’t a guaranteed path to happiness. For many professionals, their work is a major part of their identity. If you’re in that group, choosing a path simply for the paycheck isn’t going to lead to fulfillment on an intrinsic level.

There can be arguments against pursuing a dream job is it can’t sustain a reasonable lifestyle. For example, if following your passions leads to housing or food insecurity, an inability to access critical medical care, or similar issues, it’s wise to pause and consider those drawbacks. That’s particularly true if the period of time where that situation exists is long-term.

However, if the role you’re passionate about can meet your financial needs on a basic level, that may be sufficient for you. Many people can thrive even if they’ll never end up with an elevated lifestyle. Simply being able to keep a roof over their head, food on the table, and other core needs covered is effectively enough in their eyes. Ultimately, that’s a personal choice.

Raises Aren’t Guaranteed to Increase Fulfillment

Along a similar line, raises aren’t necessarily going to increase your level of fulfillment. It’s normal for a pay increase to give anyone a quick boost, particularly if they had any sort of financial struggle previously. However, that feeling may not last long if there is nothing else about the position they enjoy.

At times, professionals progress through high-paying career paths and never feel satisfied with their job simply because the work doesn’t align with their passions. When that happens, pay increases won’t necessarily prevent issues like burnout.

If you pursue your dream job instead, your odds of feeling fulfilled from the work you do are often higher. That can make you happier on the job and overall, which is a point that shouldn’t be ignored.

Long Journeys May Be Part of Both Equations

Even if you decide to follow the money, there’s no guarantee you’ll reach a high salary quickly. Additionally, roles where the pay rates are higher right from the beginning often require a significant financial investment, such as in education and training.

While that may be a non-issue if you can cover the cost of schooling without debt, that isn’t a reality for most. As a result, you still have a long road before you feel the benefits of the higher salary. If your duties aren’t fulfilling, trudging down that path may be particularly difficult.

With a dream job, the road may also be long. Additionally, it may require education and training and, therefore, debt. However, the journey may be easier to walk, simply because the work you do makes it feel worth it.

Being Miserable Hurts Your Career

When a person burns out, staying even moderately productive gets challenging. Resentment and frustration typically cause a person’s performance to drop. When that happens, any future opportunities to advance may effectively evaporate. As a result, they ultimately don’t reach the level of success they were hoping they’d hit.

By pursuing your dream job, your odds of staying focused and dedicated to the work increase. In turn, the quality of your work may remain higher. While you may not hit the same salary point that you could have in the other field, you could potentially still rise up the ranks, securing a solid salary that’ll leave you reasonably comfortable.

Not Everyone’s Motivated by Money

If you follow your salary, money needs to be a prime motivator for you. If that’s the case, you may be able to overlook some of the drawbacks of working in a field that doesn’t align with your other passions. The salary increases can simply serve as a driving force.

The issue is that most people aren’t motivated by money alone. While everyone may want to achieve a salary that lets them live comfortably and happily, they also want to find work that’s meaningful to them on another level. This could include jobs that support their communities or let them make a difference in a specific area. For these professionals, even if the salary that comes with a particular position is stellar, they won’t find their work rewarding.

Avoiding the “What If”

Generally speaking, not pursuing a dream job that was reasonably an option can leave people with regrets. They may wonder, “What if I had the career I actually wanted?” with surprising regularity.

While it’s true that people who pursue their passions – and those roles come with smaller salaries – may also think about what earning more money would be like, if their job is otherwise fulfilling, those moments may pass more quickly. However, if they’re earning high salaries but are miserable, thoughts back to the road not taken may be harder to shake.

Ultimately, whether you follow your dreams or a salary is a personal choice. For some, financial security will outweigh every other potential factor. If you’re in that group, that’s fine. Just make sure that you have other opportunities for fulfillment, such as a rewarding hobby or volunteer positions.

If pursuing your dreams means having a meaningful life, and you’re comfortable with the lower-earning potential, letting your passions guide you may be a better option. For this road, you want to develop a comprehensive financial plan. Along with a solid budget, outline any savings goals right away. That way, you can begin pursuing them immediately, too, increasing the odds you can live comfortably.

Are there other situations where you feel it’s best to follow your dreams instead of your salary? Are there times when going for the salary is the better option? Did you choose one path and want to tell others about your experience? Share your thoughts in the comments below.

Read More:

  • 4 Signs It’s Time to Make a Career Change
  • Pros and Cons of Self-Employment
  • How to Prep Your Finances Before You Quit Your Job
Tamila McDonald
Tamila McDonald

Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.

Filed Under: Personal Finance Tagged With: follow your dreams, money can't buy happiness, raises aren't guaranteed

Investment Risks in the World Today

March 16, 2022 by Jacob Sensiba Leave a Comment

investment-risks

The world is crazy right now. The war with Russia and Ukraine has created investment risks and opportunities with commodities, specifically. Inflation is also an issue. What do you do with all of these moving parts in the global economy?

Gold

Gold has only gone up since the war began, up over $2,000 for the first time since 2020. The reason being is that gold is a store of value and is often seen as a safe asset during times of uncertainty, like war, inflation, or a pandemic.

Gold isn’t the only asset that’s used in times of uncertainty. Cash, bonds, and other precious metals have also seen a massive inflow lately.

Crypto

Cryptocurrencies have also seen a run-up in recent weeks, for two reasons. One, some people do see cryptocurrencies as a store of value like gold. And two, cryptocurrencies have played a role in this war. Because Russia has been cut off, financially, from the rest of the world, they’ve used crypto to finance operations. Ukraine has done the same, but for the reason of being able to raise money from different channels.

Oil

The price of oil has been on a roller coaster since the war began. Russia supplies a lot of energy to the world. It supplies the U.S. with just 3% of oil, but it supplies Europe with most of what they use. That said, the price of oil went up very fast to about $125/barrel because the US and other countries blocked them off to further disrupt their finances.

It’s come back down since then thanks to OPEC+. They pledged to increase production to make up for the loss in supply.

Inflation

Inflation is off the charts right now. The most recent reading came in at 7.9%. There are quite a few things that are seeing the effects of it. Food is getting more expensive. Gas, obviously, due to supply constraints and inflation is getting more expensive. Property is also getting more expensive. Interest rates are going up as well. My wife and I refinanced late last year and locked our rate in at 3%. The most recent reading came in at 4.5%.

The FED is going to make some moves as well. Because of the war with Russia and Ukraine, they will take a more measured and conservative approach, so it’s possible that inflation is a problem for longer because the FED won’t hike rates as quickly as they may have previously intended.

Commodities

There are some other commodities, besides gold and other precious metals, that are feeling a pinch due to the war between Russia and Ukraine. Wheat is the biggest example of this because between Russia and Ukraine, they produce and ship a third of the world’s wheat.

Unintended consequences

Even though the war is between two countries, it’s affecting everything (though differently than how it’s affecting Russia and Ukraine). There are logistical problems that are delaying shipments of things. The air space above the scuffle is off-limits, so flights around the area are taking longer than they previously would have. Longer flights = more fuel and reduced volume on flights = increased costs.

There are a lot of investment risks and opportunities due to the moving parts in the world right now and the market will continue to be volatile until things settle down. If you have time to ride out some ugly markets, stick to your plan. If you’re in retirement or close to retirement, reducing your risk might not be a bad idea.

Related reading:

How to Invest in Gold: 5 Ways to Get Started

How Inflation is Changing Our Lives and Not for the Better

Weekly Wrap: Crypto Aids Ukraine Putin Aids Inflation and Russian Investments Tank

Safeguarding Your Future: A Comprehensive Review Of Augusta Precious Metals

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Jacob Sensiba
Jacob Sensiba

Jacob Sensible is a financial advisor with decades of experience in the financial planning industry.  His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management.  Jacob can be reached at: jake.sensiba@mygfpartner.com.

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Filed Under: International News, Investing, investing news, money management, Personal Finance, risk management Tagged With: ', choosing investments, commodities, conservative investments, crypto, defensive investing, federal reserve, gold, Inflation, invest, investing, investing news, Investment, Investment management, Risk management, wheat

Can State Level R&D Tax Credits be Used Against Payroll Tax Credits? 

March 14, 2022 by Susan Paige Leave a Comment

Many businesses are unaware of the r&d tax credit and how it can benefit their company. This blog post will answer the question, “Can state-level r&d tax credits be used against payroll tax credits?” The answer is yes! Read on to learn more about this valuable credit and how you can take advantage of it. [Read more…]

Filed Under: Personal Finance

Online Payday Loan

March 14, 2022 by Susan Paige Leave a Comment

A payday loan is a type of credit that is offered for a short time. The amount you borrow is based on your income, and you will need to pay back the payment plus interest when you receive your next paycheck. These short-term loans come with high-interest rates. 

[Read more…]

Filed Under: Personal Finance

Best Methods to Pay for Used Car Repairs

March 11, 2022 by Susan Paige Leave a Comment

Car maintenance and repairs are quite expensive. According to CAA, the average car repair cost is $500-$700. 

Unfortunately, your car will fail at some point. And body repairs, engine failure, and component failures can dent your budget if you are not prepared. 

To stay on top of maintenance, you can buy a used car warranty. This way, you can get the best deals for both bumper-to-to bumper and powertrain coverages in case of an emergency. 

That said, you need to consider various methods to best pay for car repairs.  [Read more…]

Filed Under: Personal Finance

Best Means of Making Money Through the Internet

March 10, 2022 by Susan Paige Leave a Comment

 

There are many ways to get financial freedom in today’s world, and in this article, we have discussed the best ways to make money online. Make sure you note down what could be relevant to you, as we’ve brought you some of the ways to get financial freedom through the internet. This may just be the key to begin living the life you’ve always dreamt about. [Read more…]

Filed Under: Personal Finance

Online Payment Processing

March 9, 2022 by Jacob Sensiba Leave a Comment

 

online-payment-processing

Last week we talked about the pros and cons of being self-employed. This week I’d like to discuss online payment processing. Regardless of what industry you decide to start a business in, have some sort of presence online, especially the ability to take payments. With that said, there’s a lot we need to talk about, so let’s get into it.

Payment processing

If you’re going to accept payments online, there are three key pieces you’ll need: a payment processor, payment gateway, and a merchant account.

  • Payment processor – Responsible for the bank/credit card stuff. Communicating between your bank and the consumer’s bank. Responsible for validating the card number, expiration date, security code, account numbers, and all of that.
  • Payment gateway – An online version of a point-of-sale system. The payment gateway can help connect the merchant account with the credit/debit card issuers.
  • Merchant account – A type of bank account that allows you to accept and receive payments from consumers. Without it, the money that customers are transferring to you has nowhere to go.

How it works

The customer adds items to their cart, enters in payment details, and completes that payment process. Next, the payment information gets transferred to the payment gateway through the payment processor. Then the payment gateway transfers that information to the credit card network to confirm the card details.

The credit card companies run checks to make sure all the information entered was accurate and that the transaction wasn’t fraudulent. Once that’s been done, the credit card company submits a response to the credit card network that indicates whether or not the transaction was approved. This information is sent to the payment processor and requests funds transfer from the issuing bank. The funds will be sent to the merchant account, where they will sit for a few days until they transfer to your bank account.

Which payment processing platform to use

Now that you know how these payment processing platforms work, you need to figure out which one to use. Evaluate the most popular and most widely used payment processing platforms, and then review the security protocols and techniques used by those platforms. Check on the platform’s automated billing features – this is a must if you’re selling things like subscriptions. What kind of gateway options are available? The last thing to consider is the cost of the platform.

What are the best online payment platforms? According to TechRadar, the best payment gateways are Paypal, Stripe, Payline, Adyen, and Authorize.net. If you want to learn more about those, here’s the TechRadar article.

Advantages of online payment processing

Speed and convenience – Your customers don’t have to drive to your store. They don’t have to walk around and they don’t have to stand in line. The shopping that they need to do can happen so much faster and it can happen right where they are.

Increased sales – More people shop online. By having online payments available, you’re opening yourself up to that consumer base.

Reduced costs – There are no additional costs to cash payments, but there are extra costs for store-based transactions. The cost of driving to the store. As the merchant, you have to pay for the storefront and the overhead that surrounds that. Online transactions, though they do charge an extra processing fee, don’t come with those other kinds of costs.

Disadvantages of online payment processing

Security concerns – Because more is happening online, there’s a greater chance that you open yourself up to hackers and fraudsters. That’s why it’s important to do your research.

Increased business costs – The payment processing platform costs money. The increased online exposure and security risk warrants some extra equipment, software, and security system. Everything costs money and when you’re doing business online like this, it’s worth the cost.

Related reading:

How to Keep Online Transactions Safe and Secure

How to Avoid Scams Online and Offline

The Main Types of Electronic Payments Used on the Internet

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Jacob Sensiba
Jacob Sensiba

Jacob Sensible is a financial advisor with decades of experience in the financial planning industry.  His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management.  Jacob can be reached at: jake.sensiba@mygfpartner.com.

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Filed Under: Personal Finance

Gig Worker Accountant

March 8, 2022 by Susan Paige Leave a Comment

There are a lot of people working in the gig economy these days. You may think that your finances are straightforward and there is nothing to gain from hiring an accountant. But what if you’re wrong? [Read more…]

Filed Under: Personal Finance

Expat Taxation in France

March 3, 2022 by Susan Paige Leave a Comment

The French tax system might be confusing, but it is worth investigating if you want to make the most of your stay abroad. The French government levies a number of taxes on its residents, including expatriates. The good news is that most expats may decrease their tax obligation by taking advantage of advantageous tax treaties. [Read more…]

Filed Under: Personal Finance

Pros and Cons of Self-Employment

March 2, 2022 by Jacob Sensiba Leave a Comment

self-employment

The number of businesses that have started since the start of the pandemic has shot through the roof. People realized how short life can be and decided to take their earning potential and work-life into their own hands. Here are a few stats to illustrate the self-employment picture in the U.S.:

  • As of 2019, the self-employed section of the population accounted for nearly 30% of total employment (Source).
  • As of November of 2021, there are 9.9 million self-employed people in the United States.
  • 96% of self-employed people don’t want regular jobs (Source)

Business structures

Sole proprietorship – There is no separate business entity. You are the business entity. That means your assets and liabilities are your assets and liabilities. Banks are more hesitant to lend to sole proprietors than they are for other entity types.

Partnership (LP/LLP) – An limited partnership (LP) has one general partner with unlimited liability and all the other partners have limited liability. Creditors can come after all of the general partner’s assets including things they personally own. Limited liability partners can only lose what they put in. A limited liability partnership provides limited liability to all partners. Profits are paid through on personal tax returns, except for the general partner – they must pay self-employment taxes.

LLC – Very similar to the LLP in terms of how profits, losses, and liabilities are treated. Profits are passed through to employees on personal returns. However, members of the LLC are required to file and pay self-employment taxes. 

Retirement plan options

As a self-employed individual, you have a few options when it comes to retirement accounts – Traditional IRA and Roth IRA (available to everyone), SIMPLE IRA, Solo 410(k), and SEP IRA.

Traditional IRA and Roth IRA – Contribution limits up to $6,000 ($7,000 if you’re 50 and older). Withdrawals prior to 59 ½ are subject to a 10% tax penalty unless certain conditions are met.

SIMPLE IRA – available to employers with fewer than 100 employees. Contribution limits up to $14,000 ($17,000 if 50 or older). Employer match available.

Solo 401(k) – Contribution limit is $61,000 ($67,500 if 50 or older). Available to self-employed individuals and self-employed individuals that have their spouse as their only employee.

SEP IRA – Contribution limit is 25% of employee compensation up to $61,000.

Click here for more information about business retirement plans.

Be your own boss

You get to set your own hours and work with whoever you want to. There’s no one to tell you what to do and how to do it. For people that like to make their own schedule and like to go to the beat of their own drum, self-employment makes a lot of sense.

Earning potential

There’s no ceiling on your earning potential. You don’t have a salary range, you make what you make. You can make $10,000 or you can make $10 million. That’s a double-edged sword though, your effort determines your income. You will only make money if you work for it. Someone who isn’t a self-starter, should not be self-employed.

Costs

You have to pay for everything. Whatever the cost of business is for your sector or industry, that’s on you. Health insurance, you have to pay for that. There’s no business or employer that can foot those costs for you. Same with your retirement plan, a lot of employers offer an employee match. If you’re the business owner and the employee, ALL of your contributions are your responsibility.

Related reading:

6 Ways to Save Money When You’re Self-Employed

How to Be Self-Employed Safely and Wisely

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Jacob Sensiba
Jacob Sensiba

Jacob Sensible is a financial advisor with decades of experience in the financial planning industry.  His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management.  Jacob can be reached at: jake.sensiba@mygfpartner.com.

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Filed Under: business planning, Personal Finance, Planning, Retirement, Small business, Tax Planning Tagged With: Business, business planning, Business Services, Retirement, retirement plan, retirement planning, Self-employment

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