An extra $100k

Having an extra $100k in the bank account can give you a lot of peace of mind.

If you go 1099, you can get that extra $100k in relatively short order.

Say you make $150,000 per year as a W2 and end up saving 10% per year, so $15k per year.

It would take you $100k/$15k = 6.67 years to get to 100k.

Now, as a 1099, it's not unreasonable to expect to make 50% more per year, so you make the W2 equivalent of 1.5 X $150,000 = $225,000

After taxes of 30% or so, you take home 70% of the additional $75,000 you're making or $52,500.

Your total savings per year if you don't increase spending is $52,500 + $15,000 = $67,500 per year.

To save an additional $100,000, it would only take $100,000 / $67,500 = 1.48 years.

You accelerate your timeline by five years. That's super quick!

Now this is a simplified example but it's not unrealistic if you go 1099.

If you're excited about improving your financial position and are willing to take a bit of risk, I recommend exploring going 1099.

Want the full playbook? Check out Going 1099.