What’s the best advice you’d give to someone younger than you?

Do you remember the first time you earned money by selling something you made by yourself or with a little help?

Do you remember that feeling? Maybe your parents or family were your first investors- they provided the resources: lemons, sugar, pitcher, ice cubes, water, etc. And you promised to pay them back when your new business generated income. 

The sun was shining brightly, maybe a little too bright because it was the hottest day in July. You created your first advertisement:

ICE COLD LEMONADE $1.00.

You dressed up in your best summer outfit, and outside you stood behind a borrowed card table with the tablecloth appropriately adorned with citrus fruits, and you placed your money jar next to the pitcher of lemonade, and you were ready to sell, and you did. 

Maybe you felt a little pride, or were happy that you could contribute to a good cause, even if that good cause was your ability to help your parents buy back-to-school clothes and school supplies. 

Well, it is a similar experience, my first “tentpole” marketing gig, that earned my High School SGO nearly $1,000, which taught me that I can always generate revenue without an employer. I now use that memory to give young people my best advice: create a revenue stream outside your main employer. 

I spin that advice like this: “If you are an employee, while you are earning a paycheck and collecting a W-2, do something on the side that allows you to earn additional revenue. It doesn’t have to be something fancy – just find a need and then provide a solution. 

If you live and work in the U.S., yes, you will generally have to report and pay applicable taxes on your additional income. Still, if the federal government qualifies your side activities as self-employment, as a sole proprietor, or a single-member LLC business, you may also be able to deduct ordinary and necessary expenses that are different from personal costs that you can’t claim as a W-2 employee. 

I share this advice for one reason: if your employer decides to lay you off, you will have income and an operating business model to tide you over while you search for your next employer. 

You may be an at-will employee, but your employer does not own your independent source of revenue. If you maintain a lawful, tax-compliant business of your own, losing your job does not automatically eliminate your ability to earn. 

Remember the Scout’s motto:

Be Prepared

Disclaimer: This article is for informational purposes only. Please consult a qualified tax or state-licensed legal professional and your employer for their employment rules