Self Employed Sweet Spot
I started a business about five years ago. Thankfully, the business is doing well. I have no employees, and not much overhead. I have built this from the ground up and I am at a point where I can turn work away if I want to. Too busy. Good problem to have I suppose. I’m very grateful. I have worked hard to get it to this point.
What I did not see coming is what happens when your business does well.
It’s not just the higher taxes, which were a major shock the first year I got hit with a larger bill in April.
I am in NY and we no longer qualify for health tax credits. So insurance is super pricey. My kid’s tuition has gone up based on Fafsa and not qualifying for state programs.
It feels like there is no real getting ahead in the middle class world. Once I feel good about busting my butt to build my business and make more income, the expenses also go up.
I’ve done several things such as an HSA account and my wife and I have IRA and Roth IRA. 529 for the kids.
But it just feels like when you start to feel ahead, you get hit with higher premiums and bills.
So. I pose the question:
Where is the sweet spot?
Why am I working extra hard just to feel like the treadmill is now moving faster and uphill?
Or am I imagining things?
I would venture to guess that I am banking some more money. It just seem to mostly go out the window.
But is there a limit I do not want to exceed? If I stay below a threshold do I ultimately get to keep more of my earnings?
I realize I am fortunate. I was not born with a silver spoon. I work hard and I am super grateful for the way things are currently going. I know this is not the case for everyone. And I do not take it for granted
Thanks for any advice