Under the Radar 116: The Going Indie Spreadsheet, Part 2
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welcome to under the radar show but
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independent iOS app development I'm
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and I'm David Smith under the radar is
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never longer than 30 minutes so let's
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get started so today we are kind of
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doing the part two to last week's kind
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of I don't know going into 101 or going
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into the spreadsheet way discussion
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where we talked a little bit about
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forming a forming your business
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considerations around taxes and to
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considerations around income so if you
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haven't heard that go listen to the head
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before this before you listen to this
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because those are more important in some
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ways and more foundational to kind of
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what we're gonna talk about now but
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really what we're going to be unpacking
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for the rest of this episode is trying
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to think through all the different
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expenses that you are going to have once
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you kind of workout at a vague level
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what your income goals might be what the
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tax is around that are going to be and
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then you have to like work out well what
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are the other expenses when suddenly if
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you're self-employed and you're becoming
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you know you're suddenly becoming
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responsible for all of the expenses
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associated with running a business
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what are those going to be so you're not
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caught out or surprised by what they
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they may be and some of these you may
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not have thought of but the one that was
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probably going to start with that you
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almost certainly have thought about if
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you live in the United States is health
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care and health insurance because almost
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certainly if you work at a traditional
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employer currently there you know that
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employer is providing in some way your
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your health care yeah they're they're
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paying for it themselves or you're
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paying for it but they're choosing it
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and it's a group plan and this is
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something that I feel is so often the it
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can be a little emotional and personal
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because you know health care is a very
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if not it's not this kind of it's not
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like choosing your business card
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provider or choosing you know which
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computer you buy like those decisions
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while important for your business
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perhaps like aren't nearly as personal
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and impactful for things that other than
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you know this affects your family and
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can affect you know your family in a
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so can end up being I think feeling
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something very scary now but I would
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encourage you to always think that the
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health insurance is just another number
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that you have to pay for and
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it's not the you know it's like you can
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easily become something that is a bit
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you can build it up to be something
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that's a bit more emotional or a bit
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more scary like you know right now my
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employer just takes care of that now I
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have to do that it's like well hey
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you're kind of already paying for it now
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because you're it's not like your
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employer gets their health insurance for
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free like they're paying for it for you
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and that's in some ways your money that
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is just being their you know their core
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they're having control over it so at
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least one advantage of paying for your
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own health insurance is you can you know
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tailor and choose and match it to your
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family's needs goals risks tolerance
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savings etc like you can choose that but
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ultimately just understand that it is
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just a number it is something that you
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now have to choose and make that those
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choices can be complicated and you know
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kind of challenging perhaps but it is
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just a number and once you turn it into
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a number I thought I found for myself
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that it made it a lot less scary a lot
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less problematic that I could just say
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like okay I'm gonna spend this amount of
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money on health care I put that into my
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budget I put it into my spreadsheet it's
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and then just it's just covered it's
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taken care of I don't have to think
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about it or worry about it because you
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know ultimately that's all it is it's an
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expense and then you know it'll have
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implications perhaps you know put in
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your personal life in terms of the
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different depending on the kind of
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insurance you have you know when you go
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to a doctor different things will happen
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you may have a high deductible or you
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gave to pay a copay and you know that
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part of it is certainly something that
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you can is worth considering but it's
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not this big scary thing it's mostly
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it's just an expense and it's pretty
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expensive it's probably after taxes your
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next biggest expense but it's not
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anything more than just another number
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and just another budget item that you
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have to take care of exactly like the
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the debate in your head should not be
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like I can't go indie because I would
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need to pay for health insurance or I
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wouldn't be able to health insurance
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instead it's when I go indie I have to
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find a way to make you know X extra
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dollars per month then what I then what
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I might have originally thought because
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it has to pay for health insurance cuz
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you know like as you mentioned like
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right now like someone's paying you know
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what whether you're paying for part or
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all of it yourself or chances are your
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employer is paying for you know part
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of it you know there's there's a lot
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that employers pay to have an employee
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that is not just the salary that you get
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and you know we started talking about
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this last week with with like you know
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the employer half of a lot of these
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taxes and other various you know
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employee employment taxes that you will
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have to either pay or pay some kind of
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alternative to now but also you know
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health care is part of that you know
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just office expenses like if they pay
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you say fifty thousand dollars a year
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you might be costing them sixty five
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thousand dollars a year or seventy
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thousand dollars a year or more like
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that you know depending on what kind of
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expenses they have to have employees and
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and so when you go independent it's not
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that you can't do that it's not that you
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can't pay for those things you just have
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to know how much to charge for your
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consulting services how much you how
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much income you need from products like
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stuff like it's these are not numbers to
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scare you off but to instead inform how
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you make your projections how you know
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what you need and how you set your
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prices I remember early days and I was
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doing consulting I would sign a contract
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to do a work and the number like the
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income that I was getting seemed so big
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and so like wow that's like that's a lot
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of money like I'm gonna use like this
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contract just for $20,000 like which in
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a in regular day-to-day life is a lot of
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money like but it the important thing
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that I always had to in the back of my
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mind have and this is just a rule of
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thumb that I found to be pretty helpful
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is to say like whatever that
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top-of-the-line number is it's like at
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least half of it is going to something
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else and so like it's not that I didn't
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I didn't just make in that in this in
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that example I didn't make $20,000 I
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made $10,000 and that additional 10,000
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is going to be going to all manner of
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things taxes health care office expenses
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etc and so it's important to just have
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that in the back of your mind that you
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know think these are all just numbers
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that you just have to balance and know
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what they are but you know it's good
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then the reason you're doing this is so
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that you can make sure you're charging
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enough because you know ultimately if
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you don't then that's when things like
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health care can become problematic
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you need to have the money to afford to
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pay for it exactly because like you
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weren't like I kind of said last week
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like your whole mindset of like how to
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pay for things has to change to some
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degree and your mindset about how much
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money you need to make also has to
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change because like your whole like if
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you've been only employed by other
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people until now your whole life up
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until now you've had a certain amount of
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money in your head is like what's like
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what's my salary or what's a good salary
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or what kind of salary do I quote need
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you know to maintain the lifestyle I
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want to maintain and you you still have
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to make those kind of calculations the
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numbers just have to be higher and it's
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not that like you know the idea of
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spending say two thousand dollars a
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month for family health insurance which
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is a reasonable number actually these
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days which is sad but you know the idea
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of spending $2,000 a month if you are
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getting paid and you know regular
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middle-class job that sounds insane like
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that sounds incredible why would anybody
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how can anybody pay that much but the
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answer is not thinking of it from the
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from the point of view of a payroll
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employee thinking about it as the point
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of view of somebody setting prices for a
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business to know like okay how much
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income you need every month do we need
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$8,000 a month of income to sustainment
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we need okay then that's the number like
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you know it's it's almost an any figure
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out how to do that you know you kind of
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backs off you start with what kind of
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income do I need to cover all this stuff
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and then you back solve to say okay how
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do I get there you know like a quick
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story here like when we first moved to
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New York we moved to a very nice suburb
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and I didn't know what the heck I was
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doing I moved to where my cousins lived
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because it was nice got an apartment
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there you know just renting and I looked
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around and you know TIFF and I were in
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our relationship and we wanted to you
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know get married and get and buy a house
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and we looked around the neighborhood we
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were living in which was a very very
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expensive neighborhood and all the
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houses were like a million dollars and
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so and sometimes even more than that for
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like a basic house so rather than do
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what we eventually did but just move
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somewhere cheaper I initially thought
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well I guess if a house is a million
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dollars I guess I have to figure out how
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to make a million dollars that like
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inform like salary negotiations all
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sorts of things until I eventually rose
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like I just moved somewhere cheaper but
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like for a while like that's that was
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the right way to look at it which is
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like all right well here's the
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environment I'm in I don't want to
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change the environment I'm in or
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the certain goal that I want to reach so
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rather than seeing it as this impossible
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thing that I could never do instead say
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alright this is what I need to reach
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that goal how do I get there like how do
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i how do i afford a house that cost that
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much you know and yeah and so when
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you're looking at a business you know
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you have to think like if the idea that
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I just said making eight thousand
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dollars a month has a minimum if that
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sounds crazy high to you
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backs off a little bit and instead so
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I'm thinking alright what could I do to
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make eight thousand dollars a month yeah
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so that it is just numbers like it's
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just that's why I love spreadsheets for
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this kind of stuff you just kind of work
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it out backwards and one of the side
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note too and a lot of these expenses is
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the one a nice thing about business
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expenses is that almost all of them are
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tax-deductible so it's also just need to
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keep in mind that the you know if health
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insurance costs you $2,000 a month
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it isn't $2,000 in the in the way that
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you would have had that money after
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paying taxes like theirs if you don't to
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go get carried away with like the
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discount that you're getting essentially
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by things being tax deductible but it is
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certainly something to keep in mind that
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a lot of these expenses are the raw
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number is much bigger than what it will
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actually end up costing you yes it's not
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but it is discounted it's like you
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getting your paying you get like
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one-third off you know all these a lot
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of these types of expenses but anyway so
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back to health care there's really two
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ways that you can get health care in the
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u.s. right now anyway there's two main
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ways that I think I've seen people use
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and I've to use both of these myself the
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first and this is often the easiest way
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when you're starting out is there's a
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it's called Cobra I don't know what that
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stands for but it's the essentially in
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the United States you your employer is
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obliged to allow you to continue on your
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previous group insurance plan premium
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for I think it's up to eighteen months
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after you leave it leave a job and
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basically you pay I think it's a hundred
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and two percent of the cost that you're
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the total cost that the employer was
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paying so whatever that actually is and
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you can just sort of keep whatever the
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insurance that you have now
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and this is a really useful thing even
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if you don't end up doing it in the
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early stages of kind of working out you
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know putting together your spreadsheet
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about what going independent is going to
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be like this is probably going to be
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your it's often going to be your
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cheapest version because group insurance
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is just cheaper than individual
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well sometimes sure I mean not
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necessarily but if the very least it's a
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great baseline and it's a really easy
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baseline because the number of working
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out what your the cost of your current
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plan is is should be relatively
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straightforward to you in terms of your
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employer should be leather tell you that
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or it's on your payroll stub or whatever
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and you can look at that number and you
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can say well I can just keep my current
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insurance you know if you some you like
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it I suppose but like you can keep that
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and that should be able to get you going
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you can do it indefinitely
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you know it's free the first year year
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and a half or something but it's a good
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way to just kind of get started with
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this process and it has the least
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disruption to your family in the sense
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of you know your insurance just sort of
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stays the same it's you're just paying
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all of it yourself rather than sharing
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that expense with your employer and if
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that doesn't work or if that but for
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every reason you don't want that
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insurance the alternative is usually to
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go to one of the health care exchanges
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used to you previously it used to be I
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went to like a insurance broker and
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worked it out that way recently I just
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go to healthcare.gov like the Affordable
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Health Care Act insurance marketplace
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stuff and you kind of fill in a bunch of
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forms it takes the process takes a
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little while so if you're thinking about
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this process like you can this probably
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wise to go through that and just
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understand what all the things you're
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gonna have to do like you provide a lot
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of data and then you'll just you know be
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shown a variety of health plans and you
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can choose whichever one sort of fits
◼
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your needs and your family's goals and
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you know it's depending on where you are
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in your life and your family life
◼
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different plans might make sense and I
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will say it's kind of nice that I've
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been able to as since I've been
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self-employed I've been you know I was
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able to tailor my insurance based on you
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know life stage like when we were in the
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the phase of life when we were
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you know having children so having the
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process of having children in the u.s.
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is very expensive and so we had very
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good insurance during those periods and
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as we've transitioned out of that phase
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like I've been able to transition to
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slightly less robust insurance I guess
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I'll have good insurance but it's not
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quite to the degree it was before and it
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is kind of nice because it shows that
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but you know you go through the
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marketplaces and you'll get be given a
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whole variety of choices of different
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styles you know it's the large a lot of
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them end up being the high deductible
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style plans or you can there are still
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typically options for like the PPO copay
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version of it but you just kinda have to
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choose and decide make a plan and you'll
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you know tell you is it's just like is
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it's weird but it's kind of like just
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like you're just shopping for anything
◼
►
else online like you'll get a cost and
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you just start paying that to the
◼
►
insurance company yourself yeah it's
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it's way easier than it used to be like
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back in it with like when we had to go
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to brokers and everything and and you
◼
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know not to get too political but like
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before the ACA there were a lot of
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there's a lot more things you had to
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worry about of like if you pick the
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wrong kind of plan or if you missed like
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some small print you might open yourself
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up to some major risks whereas with the
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ACA normalised a lot of that and it put
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it put in place a lot of like minimum
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guarantees of levels of coverage such
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that it's a lot less stressful than it
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►
ever was now to shop for health care
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►
yeah and so in that sense like you say
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decide what decide what plan works if it
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works for you and then you just buy it
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and now you have a number you just put
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that in your spreadsheet and move on and
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you know the big scary thing okay you
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know being self-employed is really hard
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to do you wouldn't because from a
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healthcare perspective like it isn't
◼
►
really it's it's it's expensive but it's
◼
►
it's not difficult we are sponsored once
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again this week by fresh books to all
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►
the freelancers out there you know how
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whether they've seen it which puts an
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end to all the weird awkward guessing
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games did you did you get the invoice
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did you see the invoice and they have
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all they're always added new stuff so if
◼
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one of the things I've had it recently
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►
is the new project feature this lets you
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share files and messages with your
◼
►
clients contractors and employees right
◼
►
in fresh books see how quickly things
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can happen when all your conversations
◼
►
live in one place so if you're if you
◼
►
listen to this and you have not used
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fresh books yet now is the time to try
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it fresh books is offering an
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unrestricted 30-day free trial for
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listeners of this show with no credit
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card required all you have to do is go
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to fresh books comm slash radar and
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enter under the radar in the how did you
◼
►
hear about a section thank you so much
◼
►
two fresh books for their support of
◼
►
this show so beyond health care there
◼
►
are probably a few kinds of insurance
◼
►
that you may need to think about these
◼
►
depend you may want to have some kind of
◼
►
professional liability or errors and
◼
►
omissions insurance it depends on the
◼
►
kind of work you do personally in my
◼
►
experience I haven't carried this type
◼
►
of insurance unless a contract requires
◼
►
it so sometimes you'll be you know doing
◼
►
a big consulting project and the people
◼
►
you're consulting with will one of the
◼
►
clauses in the contract is that they
◼
►
require that you cover perform have a
◼
►
professional liability insurance and so
◼
►
you may have to have that depending on
◼
►
your state you may need to have things
◼
►
like workman's compensation insurance or
◼
►
unemployment insurance usually those
◼
►
only kick in if you have employees that
◼
►
aren't yourself for yourself and your
◼
►
spouse or something like that but just
◼
►
good to keep in mind I highly suggest
◼
►
not doing that if you could help it it's
◼
►
having having any other full-time
◼
►
employees like not not just paying
◼
►
contractors here and there but if you
◼
►
have any of full-time employees it
◼
►
massively complicates a lot of these
◼
►
factors and I I did it very briefly I
◼
►
think you did too I would HIGHLY advise
◼
►
if if you can do your work with just
◼
►
yourself and occasional help from
◼
►
contractors do that and it certainly is
◼
►
one of the benefits of this type of work
◼
►
is that you probably won't need
◼
►
employees at least to start with in the
◼
►
sense of the work you're doing is just
◼
►
you know you and your laptop or you and
◼
►
your iMac you know working away you're
◼
►
not it's not like you need a production
◼
►
facility that you're like me
◼
►
gang widgets in and so hopefully you can
◼
►
avoid it or at least defer having
◼
►
employees for a while you also now may
◼
►
need to think about retirement types of
◼
►
investing like 401k or IRA type of stuff
◼
►
this is something that I mean you
◼
►
depends depends on how you view this
◼
►
type of thing you could potentially
◼
►
defer this for the you know the first
◼
►
couple years of being self-employed but
◼
►
that's up to you but either way it's not
◼
►
going to be something that your employer
◼
►
is providing anymore so it's some that
◼
►
you have to take care of yourself and if
◼
►
it's something that you would like to
◼
►
contribute to in your as you're setting
◼
►
up your business you know you have a lot
◼
►
of choices available to you I think the
◼
►
ones that most self employers would you
◼
►
is the simple IRA or a SEP IRA seem to
◼
►
be the two that you will likely take
◼
►
advantage of interestingly depending on
◼
►
your situation they may actually be able
◼
►
to consummate it but be able to
◼
►
contribute a lot more than you would
◼
►
have from a traditional 401k so
◼
►
something that could be a benefit to you
◼
►
but it's again it's just another line in
◼
►
your spreadsheet that you need to
◼
►
understand and you're gonna be setting
◼
►
up the plan yourself like you'll be
◼
►
going to you know a investment bank or
◼
►
you know Vanguard or somewhere like that
◼
►
and you'll be setting up the accounts
◼
►
and making the contributions yourself so
◼
►
that's just something you'll have to
◼
►
know now as with all the stuffs like now
◼
►
it's now that's your job now you have to
◼
►
take care of that and if setting that up
◼
►
is scary to you you know be thoughtful
◼
►
about if this really is for you well and
◼
►
also like you know you can also do
◼
►
things like hire a financial planner to
◼
►
talk you through a lot of this stuff
◼
►
especially when it comes to when it
◼
►
comes to things like long-term
◼
►
retirement savings and things like that
◼
►
that that often helps I'm sure you know
◼
►
whatever accountant you have for your
◼
►
business to do your taxes which you are
◼
►
definitely now doing that you know the
◼
►
accountant can probably give you some
◼
►
basic guidance on this as well to give
◼
►
you some idea of the much higher
◼
►
contributions a SEP IRA the limit this
◼
►
past year I believe was $54,000 that you
◼
►
could contribute total now there are
◼
►
some limitations on this so for instance
◼
►
first of all if you have employees that
◼
►
the whole thing that's messed up don't
◼
►
have employees but if you but but if you
◼
►
the I believe the limitation is it can
◼
►
be up to 25% of the business's income
◼
►
for the year so if you want to
◼
►
to 4,000 you had to make like 200 and
◼
►
you know 12,000 whatever but anything
◼
►
you contribute to the Sepp I believe is
◼
►
either a tax deduction or a credit it's
◼
►
a it's a big advantage in your taxes so
◼
►
like these are things that you know any
◼
►
good accountant should tell you you
◼
►
should investigate you know if you have
◼
►
enough income coming in to a business
◼
►
where you where asset makes sense it can
◼
►
be a pretty substantial tax savings yeah
◼
►
and the other advantage to this just as
◼
►
a side note there is it's nice that you
◼
►
have more so much more control as with
◼
►
so many of these things over this and so
◼
►
it isn't the kind of thing where you
◼
►
have to like on January 1st decide
◼
►
what's your employee retirement
◼
►
contributions are gonna be for the year
◼
►
you have a bit more flexibility about
◼
►
when you do that about when you time
◼
►
that so if you have a great year and you
◼
►
get to the end of the year you know you
◼
►
can make it larger or attack the
◼
►
retirement contribution that year so
◼
►
that you can lower your tax liability if
◼
►
that makes sense like there's lots of
◼
►
cool things that you can do because you
◼
►
have flexibility because you're not just
◼
►
you know one of a thousand employees and
◼
►
so you you had you you actually have the
◼
►
ability to make these choices yeah also
◼
►
by the way if you didn't know about this
◼
►
stuff it is not too late to do this for
◼
►
this past year because you can
◼
►
contribute to at least a step I don't
◼
►
know what the other ones but you
◼
►
contribute to except I think up through
◼
►
up until tax day up until April or
◼
►
something so yeah so like you can do it
◼
►
for the previous year so so definitely
◼
►
like if you're into this for this year
◼
►
ask somebody about it ASAP because it
◼
►
isn't too late and but yeah it's these
◼
►
are things that you know again and you
◼
►
know which is with the control it's
◼
►
great because like if you had a not so
◼
►
good year you can either skip it and not
◼
►
contribute or you can contribute a
◼
►
smaller amount and you otherwise
◼
►
would've if you had a fantastic blowout
◼
►
year you can contribute as much as you
◼
►
possibly can you know it's it really
◼
►
puts everything in your hands just like
◼
►
much of self-employment yeah other
◼
►
expenses so you're to get into things
◼
►
that like just otherwise your employer
◼
►
would have typically covered for you so
◼
►
things like mileage to are from
◼
►
consulting clients potentially those
◼
►
type that type of thing or travel for
◼
►
work to conferences any educational
◼
►
expenses you may have so if you need to
◼
►
take a course or a certification or
◼
►
something like that for your for your
◼
►
work that's now like a you know a
◼
►
business expense and it'll in debate it
◼
►
deductible from your income
◼
►
as well as just something you need to
◼
►
take into account that if you know if
◼
►
your employer every year is sent you to
◼
►
WTC and took care of all the expenses
◼
►
that's now going to be you paying for
◼
►
that and so working out you know what
◼
►
that costs are associated with that
◼
►
whether that still makes sense you'll
◼
►
need to use by your own office supplies
◼
►
you know whether that is you know
◼
►
pencils and paper or if that's the
◼
►
business cards and letterhead like I
◼
►
mean depending what kind of business you
◼
►
have you may or may not need any of
◼
►
those but that's now something that
◼
►
you're gonna have to take care of
◼
►
yourself so you're gonna buy your own
◼
►
coffee for the breakroom yeah that's
◼
►
that's true they you can't you can't
◼
►
just mooch off their terrible's your
◼
►
oh I should get a water cooler installed
◼
►
on my office there you can I know you
◼
►
can have conversations with yourself
◼
►
there on a regular basis those are
◼
►
probably expensive can you get can you
◼
►
have a guy come and like bring those
◼
►
giant glass dude those giant jugs to it
◼
►
is that a thing you can do your house
◼
►
I'm sure if you paid for it they would
◼
►
be happy dude they would be happy to
◼
►
bring the giant five gallon drums into
◼
►
your house and set it up for you
◼
►
probably not very cost-effective and you
◼
►
just did a tap with a filter on it might
◼
►
be more effective or probably just a gas
◼
►
so you may you now be responsible for
◼
►
your own hardware in terms of your
◼
►
computer any testing devices that you
◼
►
now need in depending the kind of work
◼
►
you do you may want to have a collection
◼
►
of test devices that's now your
◼
►
responsibility to purchase probably also
◼
►
something just as it's always a good
◼
►
idea but I was going to mention it in
◼
►
this kind of topic is make sure you also
◼
►
like your fun of your first purchases it
◼
►
was probably gonna beat if you don't
◼
►
have it already like a good backup hard
◼
►
drive because suddenly now you are
◼
►
personally responsible for you know your
◼
►
work like if you somehow your hard drive
◼
►
you know your computer dies and you
◼
►
suddenly don't have that project that
◼
►
your your client has been paying you for
◼
►
six months to build like that is a
◼
►
tremendous problem so you need to make
◼
►
sure you have a very good back of
◼
►
situation both in terms of physically
◼
►
like having a like I do a daily mirror
◼
►
of my main machine in addition to a
◼
►
variety of cloud backups but like that's
◼
►
an it's a hardware expense that you may
◼
►
to factor in a really good chair sure if
◼
►
you sit in a chair for two hours a night
◼
►
after you come back from work that has a
◼
►
very different needs and if you're
◼
►
sitting on one for eight hours a day
◼
►
yeah yep you'll have a variety of kind
◼
►
of home office things like and all say
◼
►
don't go no necessarily go crazy right
◼
►
away it's it's like we as if you listen
◼
►
to us talk for long enough you
◼
►
understand we take these things very
◼
►
curiously like having good good
◼
►
ergonomics make sure you have a keyboard
◼
►
and a mouse and things that work but but
◼
►
like if it's gonna be hard to get
◼
►
started like you know you could these
◼
►
are the kind of things they can be nice
◼
►
goals for you know buying at the end of
◼
►
the year if the year goes well these are
◼
►
like Cydia things that you can certainly
◼
►
you don't need to do these right away in
◼
►
the same way like I fur my fur to start
◼
►
with like I didn't have that great of a
◼
►
laptop or that great of a computer I
◼
►
just made it work you know you may not
◼
►
necessarily go out and buy a
◼
►
top-of-the-line iMac pro on your first
◼
►
day of starting your new business like
◼
►
yeah that's a terrible idea
◼
►
that's probably unnecessary like you can
◼
►
kind of get started with what you have
◼
►
and then grow and develop as you may
◼
►
have need you're also going to probably
◼
►
have to buy some software like things
◼
►
that your employer may have previously
◼
►
provided like if you use Photoshop or
◼
►
illustrator or transmitted or tower-like
◼
►
any of the kind of utilities and tools
◼
►
that are just a part and parcel of you
◼
►
know B being an iOS developer you are
◼
►
gonna need to now pay for those yourself
◼
►
similarly you'll have a bunch of certain
◼
►
online services that you're gonna pay
◼
►
like I you know I have accounts with
◼
►
Dropbox you may have things with github
◼
►
or Linode for hosting you have some a
◼
►
havoc an account to something like fresh
◼
►
books or QuickBooks you may probably few
◼
►
have any kind of web servers you'll
◼
►
probably have a count to like Kingdom or
◼
►
hover you may be doing backups with
◼
►
Backblaze like you're gonna be a variety
◼
►
of these kind of services and well any
◼
►
one of them individually is may not be
◼
►
that expensive in aggregate you know
◼
►
they're not an insubstantial part of
◼
►
your expenses so make sure you have them
◼
►
in the spreadsheet and know what they're
◼
►
you know what what that what kind of
◼
►
expenses you're gonna have to to manage
◼
►
with that are also make sure that the
◼
►
licenses or the service plans that you
◼
►
are getting for things allow business
◼
►
use most of the things we've mentioned
◼
►
it's the same no matter what you use
◼
►
for but there are occasional services or
◼
►
some or some software packages where
◼
►
like if you're using it for business use
◼
►
you're required to pay more to be
◼
►
compliant with a license yeah it's just
◼
►
good advice in general yeah it's pretty
◼
►
rare but but those do still exist sure
◼
►
early you know make sure that you're
◼
►
being up above board with all of these
◼
►
these types of things exactly like you
◼
►
hear like this is not a place to like
◼
►
pirate your copy of Photoshop like you
◼
►
can't no you can't do that with your
◼
►
business stuff because suddenly you're
◼
►
the liability that you're putting
◼
►
yourself under and your clients under
◼
►
and things suddenly become very
◼
►
problematic so like in general good
◼
►
advice like be above boards like
◼
►
understand that this is a business
◼
►
and if you've factored these costs
◼
►
incorrectly into your you know into your
◼
►
spreadsheet into your expenses like it
◼
►
shouldn't be a problem in that regard
◼
►
and so it should be fine and then by the
◼
►
last area to think about is professional
◼
►
services so you're like we've talked
◼
►
about many times you Vega need to have
◼
►
either a lawyer in an accountant or just
◼
►
an accountant or some kind of in terms
◼
►
of some type of professional advice on
◼
►
the financial side you may also need to
◼
►
periodically hire a graphic designer not
◼
►
entire as an employer but just hire in
◼
►
terms of do some consulting for you if
◼
►
you need even even icon the icons for
◼
►
your apps or an icon for your business
◼
►
if you think that's important or
◼
►
whatever like these are kind of
◼
►
professional services that you're going
◼
►
to need to suddenly start paying for
◼
►
that you just need to keep into mind and
◼
►
they're not typically crazy expensive
◼
►
it's just an expense that needs to have
◼
►
its I have a have a line item and be
◼
►
considered as you're going into this
◼
►
with your eyes open this all sounds like
◼
►
a lot and it is a lot when you when
◼
►
you've never done it before but you know
◼
►
it's not that different from like the
◼
►
transition from renting the place you
◼
►
live to owning a place that you live or
◼
►
the transition into being becoming a
◼
►
parent if you've done that like it's
◼
►
it's a thing where like you might not
◼
►
beforehand you might not have fully
◼
►
appreciated like all the things that
◼
►
were needed that were being done for you
◼
►
or that you that weren't necessary to do
◼
►
that now you have to do but millions of
◼
►
people do this millions of people have
◼
►
figured this out before you many of them
◼
►
it's it has a lot more to do with
◼
►
experience with these things than it has
◼
►
to do with skill or intelligence or
◼
►
anything else like if you want to tackle
◼
►
this you probably can yeah and we'll say
◼
►
- it's probably just a good indication
◼
►
of whether you should that like if the
◼
►
if the thought of starting this process
◼
►
is completely overwhelming and you just
◼
►
can't handle it maybe being a regular
◼
►
employee is for you but if you can get
◼
►
over that like obviously we both
◼
►
recommend it we both like this lifestyle
◼
►
but it's a probably a good litmus test
◼
►
for doesn't this make sense for me that
◼
►
if the last you know this episode in the
◼
►
previous one is just like totally blown
◼
►
your mind then like okay maybe it's not
◼
►
for you and that's okay like this is
◼
►
like neither one is like the right one
◼
►
the right choice for you but you just
◼
►
have to it's a good thing to understand
◼
►
that these are these are the things that
◼
►
you're gonna have to take care of if you
◼
►
go down this road Thanks listening and
◼
►
we'll talk to you next week bye