Just Over Broke

There is a famous acronym (J.O.B.), which means Just. Over. Broke. This blog is going to delve deeper into why having a normal job leaves people just over broke.

Every Christmas I meet up with my old school mates. We always have a great time catching up. It’s always like we haven’t been apart! However, I can almost guarantee at some point during the discussions the topic of being “broke” will be brought up.

At school, a lot of my mates were fascinated by getting good grades, to get a good job in the future. I have always known deep down I never wanted to work for someone and that I always wanted to be my own boss. Although, at the time I was 14 or 15, I didn’t understand the financial benefits of running a company, I liked the idea of being in control.

A massive reason why a lot of my mates don’t have the income they desire isn’t because of their lack of knowledge or hard work, it’s the way the system works.

As an employee, tax goes against you. The more you earn, the more you get taxed – it’s a cruel trap!

As a business owner, I still get taxed, but only on what’s left of what I haven’t spent.

Here are 2 simple diagrams to explain:





Business Owner:




Another interesting fact on tax… The majority of people operate within the 20% tax bracket. This means that for approximately 2.5 months of the year you are working to pay the government!

The killer point is the more you earn, the more you get taxed. Which means as an employee, the harder you work, and the more extra hours you put in – the more you will be deducted.

If you are a higher earner and you fall into 40% bracket, you are hit even harder by tax!

My advice to people is, decide what you want to do in life – and find a way to generate your own income from it. The issue with working for someone is you are helping build someone’s dream, not yours. You are part of another person’s retirement plan.

The way I see it – even if someone employs you at 200K per year, sit back for a second and think: “If the owner is paying me 200k per year, then what the bloody hell am I making him/her?” If you aren’t generating the owner more then he is paying you, you then become a liability. Why do all of the work for the owner when you can do it yourself?! Or if you can’t do it, learn it!


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