Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.
Don't go broke saving
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A few years back, Instant Pot, an electric pressure cooker, was all the rage. You could throw a frozen chicken and potatoes in there and within an hour would have a perfectly cooked meal. I didn't care about buying one until Amazon had a good deal on prime day. I don't remember the discount exactly but it was maybe 30% off the normal price. And since that day 8 years ago, I have cooked tens of meals with it. Was it a waste of money? Mostly. But I "got a good deal." Similarly, lots of people get excited about business expense tax write offs. They have a list of toys or services they want and think by claiming it as a business expense they are getting a "good deal" on it. This is wrong. First, you can only write off purchases that are legitimate business expenses. Just because you work from home your snacks don't count as a deductible meal. When you work for yourself in a service business, you really don't have that many expenses. I'd be surprised if you had more than a few thousand bucks of legitimate business expenses per year, at least in the solo 1099 federal sub-contracting world. Second, buying stuff just because you can get a tax deduction is dumb. I listened to a podcast where a guy bought a truck through his business because he wanted to pay less taxes. He did not need a new truck. He just wanted one. So he bought it and that put him in a bad financial situation. He lost the forest for the trees and was going broke saving money. Don't buy stuff you don't need just because you can maybe save a few bucks in taxes. Now, there is definitely one legitimate tax vehicle you should take advantage of as a 1099, and that's the individual or solo 401k. Basically, you can defer a much higher percentage of your income to a tax deferred 401k. As a W2, you can contribute up to $23,000 in 2024. As a 1099, you could potentially contribute up to $69,000. This has the potential to grow your wealth substantially more than miscellaneous business expenses. Going 1099 is financially exciting, but not because you can maybe deduct your Instant Pot. If you're interested in learning how to get your first solo 1099 federal sub-contract, check out my book: |
I'm Dale, the author of Going 1099
Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.
Rocky was a 1099 If you're a decently skilled employee in the government contracting world, there is no reason you shouldn't be able to go 1099. The main differentiator I've seen between people who claim they want to go 1099 and the people that actually do it, are that the people who pull it off are just a little more aggressive (assuming they are equally skilled, in desirable fields, etc.). The successful ones "pester" their network a bit more, negotiate a bit harder, and push to go 1099 for...
Offering half a muffin can often be helpfulvia X When you're trying to go 1099, you're largely focused on what you want. Imagining getting what you want is highly energizing and motivating, so it's easy to focus our energies there. But it's important to focus on what you can do to help others. For example, when you network with people, see if there are ways you can assist them. Maybe they have a friend looking for a job in your field, and you can meet them for coffee and make an introduction...
Treat Yo Self ... to non-billable funvia Reddit One of the fun parts about going 1099 is find opportunities to increase your billable rate. My own billable rate progress sent from something like $85 -> $100 -> $110 -> $115 -> $160 ->$180 per hour over an eight year period. Those early rate increases made a big differences. Actually all of them made a big financial difference. But the thrill of bumping up your rate wears off quickly, and then you're left with figuring out how to make your work...