Stop trading time for money ... eventually
In the federal 1099 world, it is highly likely that you will be trading time for money since most of the big service contracts are set up to charge the government per labor hour.
However, if you're the type of person to go 1099, there is a good chance you'll also get frustrated with having to work more to earn more money. Even when you increase your rates, you'll still feel tempted to bill more hours to earn even more.
There are a few paths to get out of this trap:
- Take on non time based work like firm fixed price projects
- Simply stop working more and accept a reduced income
- Invest to build wealth over the long term so you don't have to work (i.e. retire)
- Build non-time based additional revenue streams or businesses
- Win the lottery or invest in crypto (j/k)
These are not mutually exclusive.
I am currently working less than full time, investing in an S&P 500 index fund regularly, and exploring building out the 1099 book/resource business.
At this stage 99% of my income still comes from trading time for money. In the future I hope to shift that to a much lower ratio.
The nice part about going 1099 is that you can get paid much better for your time than you could as a W2 employee and with more time autonomy.
So, if you're already in the government contracting industry and want to build stop trading time for money, going 1099 is a nice intermediary step, one that buys you additional resources and flexibility to get even more of your time back.