Become happier by earning and working less

I think one of the biggest fears Americans have about working for themselves is earning less money.

There is certainly a financial concern if you earn less. You won't be able to buy as much stuff.

But there's also a sense you're moving backwards. If you got a pay decrease at work, you would feel embarrassed and angry.

However, if you got a pay decrease but switched to working for yourself, you may become happier.

I just read a WSJ article that cited a survey saying 75% of freelancers and consultants felt they were paid fairly, as compared to 68% of full time staffers. This held even if the freelancers were paid less!

Being Happy With Your Paycheck Isn't Just About How Big It is

The article profiles Brendan Little who made $90,000 - $94,000 as a full time employee but now makes $40,000 annually working 20-30 hours per week.

"He now earns $100 to $150 an hour and works 20 to 30 hours a week between consulting and producing a documentary about people facing homelessness and addiction in Boston. His yearly income is about $40,000, less than half of what he used to make, and he has to spend time billing and networking to find new business. Still, he describes his work arrangement as “perfect.”

'What’s most important to me right now is my family, doing something that I feel is useful in the world, and something that’s creative,” Little said.' "

There are lots of caveats to this line of thinking.

If you don't make enough to support yourself, you're not going to be happier.

If you're having trouble finding enough work because you're valuable enough, you will quickly find yourself looking for a job again.

But assuming you make "enough," taking a pay cut to get your time and autonomy back is a winning move.

If you're in the government contracting world, Going 1099 is one way to do that. And in fact, you can work less AND make more if you do it right.

Want the full playbook? Check out Going 1099.