Develop Your Own Business

Self Employment

Start your own business. In the book, The Millionaire Next Door, two thirds of the non retired millionaires owned their own businesses. I believe there are two main reasons why so many millionaires are self employed. The first is that when you own your own business, there is no upper limit on how much money you can make. If your business does well, you can double or triple your income in a year. Self employed people don't have to work hard for a 3% merit raise. The second reason is tax deductions. The tax laws in the U.S. allow for many more tax deductions for business owners than they do for people who earn W2 income, thus allowing them to shelter much of their income from taxes and freeing it up for investments instead.