The dream of working from home rings true in many eBayers. Just think of how easy it would be to prioritize your day according to what’s relevant to your life, or even work when you wanted to. For most, this is just a dream, but does it have to be? The average person may say “YES,” but have you really done a deep dive into how much you are actually making at your current job? According to USA Today, the average person makes around $25,000. On the surface, it seems that you are contributing all $25,000 to your household, but I want to take you through a closer look at what it actually costs you to work at a traditional job vs. eBay!
My wife Amy and I had to take a look at this same scenario when we had our first child. Since we had just moved to a new city (and just had a baby), Amy was not working. We had a long talk about her going back to work full time, but when we ran the numbers, it didn’t make sense. Let’s take a look at how it compares.
Let’s just use the average American Salary of $25,000 in our example:
Daycare – For us, one of the biggest expenses would have been Daycare. This can actually fluctuate depending on your city and state, but where we live the average Daycare would have cost us around $400 a month for one child. On the flip side, Amy was able to stay at home with our son Jack and work when he is sleeping. She can surf the web from our couch, and find great eBay inventory online. If she does take Jack to a Goodwill or another store, she makes it fun by having Jack help pick out an item to sell on eBay.
Clothing and Dry Cleaning: Amy had worked in the Paralegal field before we moved, so she was expected to dress up each day. She didn’t necessarily have to wear a business suit, but she had to dress professionally. It seemed as if she had to buy new clothes all the time, and that really added up. Not only that, some of the clothes that she bought had to be dry cleaned. This averaged out to be around $80 a month as an added expense. We still buy clothing, but it’s nothing compared to the cost of the Professional Dress Code she had to abide by.
Lunches: Eating out can really add up, and with Amy’s old job, everyone would ask her to eat out each day. A couple times a week she would take them up on that offer and end up spending about $40 a week on snacks and take out food. Amy now has time to plan out her meals.
Transportation: Here in Indianapolis, driving to work can be a long commute, and when you add in the parking costs, it can blow out your budget for the month! Driving 600 miles per month or more for your commute can equate to around $200 a month in gas! Not to mention normal wear and maintenance on your car. You may be thinking that as an eBay entrepreneur, you may need to drive quite a bit, and yes, this is true. The good thing about having an office at home is that you can write it off on taxes (I’m not a tax expert, so please talk to your tax adviser).
Miscellaneous: There are other small amounts of money that a traditional job may cost you. What about you having to pitch in money for someone’s birthday (that you might not even like) or other odd things that come up every month? They do add up in the long run.
Taxes: Everyone pay’s taxes. This even includes an eBay Entrepreneur.
So let us add it up and see what it costs you to work at a traditional job:
- Per month: $2,083
- Take out average taxes of 19% – Take home pay is now: $1687
- Take out Daycare costs – Take home pay is now $1287
- Take out Clothing expenses – Take home pay is now $1207
- Take out Lunch expenses – Take home pay is now $1187
- Take out Transportation expenses – Take home pay is now $987
- Take out Miscellaneous: Take home pay is now $947
That means that you are now working a traditional job for only $947 a month. Can you make $947 a month on eBay? Absolutely!! You can make way more than that! When Amy and I did this exercise, it was really eye-opening, and we made a game plan on how she can make more than her traditional job on eBay and still be a stay at home mom. This is something that was crucial to us, and has definitely paid off! This scenario may be different for you. However, the concept is the same. If you want to work from home as an eBay Entrepreneur, then add up what it actually costs you to stay at your job; that way you will know how much you need to make to replace your income.
Also, if you are new to eBay, I recommend that you start slow and get familiar with how to make money on eBay. I know it can be really exciting to see how you can work from home, but gaining the confidence and knowledge to sell on eBay does take a little time, so pace yourself, and test it out for yourself before you quit your traditional job. You want to be 100% sure that you can replace your income.
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