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Some of America’s biggest companies, including Tesla, T-Mobile, and Netflix, were front and center in a new report that reveals how much companies paid in federal income taxes — compared to how much they made in profit, and what they paid their top executives.
The Institute for Policy Studies and Americans for Tax Fairness released a report Wednesday that highlighted “a significant number” of major U.S. companies, 35 in total, that paid its top five executives more than they paid in federal income taxes between 2018 and 2022.
Elon Musk’s Tesla was No. 1 on the list. The company paid its top five executives $2.5 billion over five years while bringing in $4.4 billion in U.S. profit.
Tesla Motors CEO Elon Musk speaks to the media next to its Model S during a press conference in Hong Kong. 25JAN16 SCMP/ Nora Tam (Photo by Nora Tam/South China Morning Post via Getty Images)
Musk has a net worth of around $184 billion, with about $69.7 billion of that total based on the value of his Tesla stock, according to the Bloomberg Billionaires Index. Musk is one of the top three richest people in the world.
The report points out that despite Tesla’s record profits, the company “has never paid a nickel in federal income taxes.” A potential cause of this trend, according to the report, could be Tesla carrying losses forward from before it became profitable.
“These loss carryforwards smooth out the often boom-bust nature of corporate finances,” the report reads.
Related: ‘Next Tesla’ Electric Car Startups Hit Speed Bump: ‘Investors Want To See Demand’
T-Mobile was second on the list, with a profit of $17.9 billion in the U.S. over five years and zero net federal income taxes. The top five executives there were paid $675 million from 2018-2022, according to the report, with CEO and president Mike Sievert receiving $158 million of that total.
There are a number of tax avoidance, or tax minimizing, strategies mentioned in the report, including shifting American profits to offshore tax havens or using stock option tax deductions.
The report does not take state, local, or payroll taxes into account.
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PHILADELPHIA, PA / ACCESSWIRE / March 11, 2024 / The Board of Trustees of abrdn Income Credit Strategies Fund (the “Fund”), has declared a cash distribution of $0.328125 per share of the Fund’s 5.250% Series A Perpetual Preferred Shares (NYSE:ACP PRA) (“Series A Preferred Shares”). The distribution is payable on April 1, 2024 to holders of Series A Preferred Shares of record on March 22, 2024 (ex-dividend date March 21, 2024).
The Series A Preferred Shares trade on the NYSE under the symbol “ACP PRA”, are rated “A2” by Moody’s Investors Service and have an annual dividend rate of $1.3125 per share. The Series A Preferred Shares were issued on May 10, 2021 at $25.00 per share and pay distributions quarterly.
Distributions may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term capital gains and return of capital. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. In January 2025, a Form 1099-DIV will be sent to shareholders, which will state the amount and composition of distributions and provide information with respect to their appropriate tax treatment for the 2024 calendar year.
You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution.
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, abrdn Asia Limited, abrdn Private Equity (Europe) Limited, and abrdn ETFs Advisors LLC.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund’s investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund’s portfolio. There is no assurance that the Fund will achieve its investment objective.
www.abrdn.com/en-us/cefinvestorcenter
For More Information Contact:
abrdn Inc.
Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com
SOURCE: Abrdn Income Credit Strategies Fund 5.25% Series A Perpetual Preferred Shares
View the original press release on accesswire.com
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This is an as-told-to essay based on a conversation with Dave Claunch, the owner of the Bloomhouse rental property in Austin, Texas. The following has been edited for length and clarity.
This story originally appeared on Business Insider.
I was aware of the Bloomhouse’s existence about 10 years before my wife Susan and I bought it. But I didn’t know exactly where it was and had never visited.
We were looking for an investment property either to flip or to set up as a vacation rental. We had a good friend who owns a vacation rental property management firm, Lodgewell, and we thought it’d be a good opportunity to partner with her.
One day, I got the local Business Journal, here at my office, and there was a color insert of high-end real estate properties with the Bloomhouse on the front page. I thought it’d be an awesome investment property if we could make it work.
How we decided to invest in the property
Left to right: The exterior of the Bloomhouse after renovations and before renovations. Courtesy of Dave Claunch via BI
We purchased the Bloomhouse in April 2017, renovated it for 18 months, and went online in early 2019. When we bought it, it had been on the market for six or seven months, which in Austin, Texas is rare.
Even more surprising is it was appraised for lower than the value of the land. The building, which was built in the ’70s, was subtracting from its value and there were people looking at it with the intention of tearing it down and putting up a McMansion. I think the sellers rebuffed those advances because they wanted to see it preserved.
The Bloomhouse has a unique path leading up to the front door. Courtesy of Dave Claunch via BI
We were looking for something a little bit more traditional, but pretty quickly my passion for the uniqueness of this property, as a piece of art, drove the decision-making process. Nobody was dumb enough to buy it to renovate it either — except me.
The exterior of the Bloomhouse in the woods. Courtesy of Dave Claunch via BI
Fortunately, the economics worked out well, but it had a lot of problems and it was in pretty bad shape. There was mold and all the plumbing was calcified and didn’t work.
How we party-proof our rental property
A sitting area and bar inside the Bloomhouse. Courtesy of Dave Claunch via BI
It was a leap of faith getting the property fixed up, solving all its problems, and still making money on the back end. My goal was to not just return it to its original condition. I wanted to make it as close to perfect as I could, while also party-proofing it because vacation rentals get torn up pretty quickly.
The kitchen. Courtesy of Dave Claunch via BI
People usually buy low-quality furniture and it breaks, so I wanted to be sensitive to that and put a lot of extra effort into making everything as durable as possible. Lodgewell also does a great job screening rental applicants. Our rental is limited to four occupants to appeal to people who are interested in the artistic side of the structure, and who aren’t thinking “Hey, this is really cool, let’s throw a kegger.”
How we prevent vandalism at our rental
Furniture and decor in the living room. Courtesy of Dave Claunch via BI
We haven’t had any major problems. It’s made of concrete, so you’ve got to try really hard to break it. There are certain things that are more fragile than others, but even the interior walls are about an inch of concrete stucco.
The couch in the living room. Courtesy of Dave Claunch via BI
We’ve had an expected amount of damage to the contents — a piece of furniture breaks or a carpet gets stained — but the maintenance has been less about repairing damage from renters and more about keeping up the structure so it looks good.
Types of people who rent our property
We’ve had people from all over the world stay here — but creatives love it best.
The bedroom. Courtesy of Dave Claunch via BI
The one-bedroom, two-bathroom home starts at $400 a night and goes up depending on the time of year. One thing that binds all the guests is they tend to be creative people who appreciate art. I’ve had friends who are in accounting or finance and they’re incredibly uncomfortable at the Bloomhouse. It messes with their heads and they don’t like it. It’s the creatives who feel comfortable there.
A sitting area in the foyer. Courtesy of Dave Claunch via BI
It’s a bit discombobulating the first hour or so because we’re always used to square and level walls and this structure is so organic on the inside. You do kind of feel out of sorts.
The Bloomhouse bathtub. Courtesy of Dave Claunch via BI
In my experience, and with people I’ve talked to, they say after about an hour it starts to feel really comfortable. After a day you’re like “Oh my God, why aren’t all buildings like this? It’s so much better.”
How we promote our rental property
According to our management firm, about 60% of our bookings come from Airbnb, 10% come from VRBO, and 30% come through direct bookings or smaller sources.
A uniquely designed bathroom mirror. Courtesy of Dave Claunch via BI
We have social media channels, but we’re not very active on Facebook or Instagram. This is a side gig for me, and I’m busy doing other stuff. My wife will occasionally post, but we’re not actively promoting the property. It’s mostly through word of mouth or news articles, and we’re okay with that.
A winding staircase inside the Bloomhouse. Courtesy of Dave Claunch via BI
We’ve also had a few videos on the Bloomhouse go viral — for example, a TikTok posted in June got nearly two million views. It’s been surprising how much the property has resonated with people who appreciate its unique artistic value.
A reading nook in a corner of the Bloomhouse. Courtesy of Dave Claunch via BI
The property usually books about a month out, and we’re booked about 90% of the time, which I credit to the uniqueness of the place. One of our goals in purchasing it was obviously having it as an investment and a revenue stream, but also to preserve it as a piece of art.
Axel Springer, Insider Inc.’s parent company, is an investor in Airbnb.
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David Olusegun has been branding consumer products and the entertainment industry for the last 15 years and has picked up some tips and tricks along the way for aspiring entrepreneurs.
Working with global brands such Warner Music, and Sony Pictures has allowed him to gain vast experience within his industry, and be able to coach others with building their own brands.
He has built his newsletter – Creators Blueprint – into a passive source of income, generating up to £5,000 a month.
He said: “My aim was to provide a comprehensive resource that could act as a blueprint for creators, entrepreneurs and leaders to learn from some of the most successful creators in the world to give.”
For any successful newsletter, Britons are encouraged to find a topic they have vast knowledge about that they can help others understand.
By picking a topic, Britons can develop and attract a loyal readership.
Mr Olusegun said: “I focused on creating high-quality content, targeting creators who were in dire need of strategies, insights, and tips to improve their business.
“I promoted the newsletter via organic and paid marketing through various channels such as social media, and other newsletters.”
Britons need to be able to promote themselves and get their product out to as many people as possible as the next newsletter subscriber could be anywhere.
Using social media platforms such as TikTok or Instagram can help people that may not have a large following reach a variety of people.
With a strong topic and delivery, Britons can create their own ads by making videos on these platforms explaining why people need to subscribe to the newsletter.
Mr Olusegun explained if people can gain loyal readership, they can build on this and offer exclusive access to certain information.
He introduced a paid membership plan. So, for a small fee, paid subscribers got access to exclusive content, including masterclasses, one-on-one consultations, and downloadable resources.
This not only allowed him to monetise but also helped create a sense of community among members.
He continued: “Once I had a dedicated subscriber base, I reached out to brands that aligned with the needs and interests of my readership. By collaborating with these companies, I was able to offer my subscribers exclusive discounts and benefits, which added value to their subscription. In return, I started earning a commission through affiliate marketing.”
However, he warned that before people think about monetising their content, they need to remember the most effective strategies are those that provide value to their audience.
Mr Olusegun added: “Always keep your audience’s needs and interests at the heart of your decisions, and success is more likely to follow.”
He gave his five key tips for monetising content. Following these tips has helped Mr Olusegun gain vast success and earn £5,000 a month through newsletters alone.
Master the Art of Affiliate Marketing: “Affiliating with brands relevant to one’s content and audience can be a profitable way to monetize. Promote products or services and earn a commission for every sale made through a referral. Just remember, credibility is key. Only endorse products one believes in to maintain trust with their audience.”
Create Premium Content: “Implement a membership or subscription model where your audience pays for access to exclusive content. This could include in-depth guides, webinars, or one-on-one consultations. This not only generates revenue but also helps build a loyal community around your content.”
Utilise Sponsored Content: “Partner with brands and businesses to create content that highlights their products or services. This can be a win-win situation as the brand gets exposure, and you receive payment. Ensure the sponsored content aligns with your audience’s interests and provides them with value.”
Launch Digital Products: “If you’re an expert in a particular field, consider packaging your knowledge into digital products. These could be eBooks, online courses, templates, or even mobile apps. Digital products can be sold unlimited times, creating a sustainable and scalable revenue stream.”
Offer Services: “Your skills as a content creator can be a lucrative source of income. Offer services such as consulting, content creation, design work, or coaching sessions. This personal interaction can significantly enhance your relationship with your audience, resulting in increased engagement and monetisation opportunities.”
Mr Olusegun has worked for/with many global brands including Warner Music, MTV, Nickelodeon, Nike, and Sony Pictures. His experiences inspired him to establish Creative Control Ventures (CCV), a venture builder that partners with purpose-driven celebrities to launch global Consumer Packaged Goods brands.
Since its inception in September 2021, CCV has shown remarkable growth, including the successful launch of Nala’s Baby, a brand stocked in over Boots stores across the UK.
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It’s sometimes thought that financial success comes down to luck. A person launches a business and hits it big coming out of the starting gate. Maybe that does happen – occasionally – but it’s not typical. One of the best ways to prove the point is by following up with someone several years after starting a business and finding success. That’s what I’ve done, and guess what I found?
More success, much more!
Back in 2019, I covered the incredible story of Kelan and Brittany Kline in How This 28-Year-Old Couple Quit Their Jobs And Make $100,000 A Year Working From Home. But after catching up with them recently, I knew it was time for an update. The Kline’s no longer make $100,000 a year working from home. They left that threshold in the dust and are now closing in on $100,000 per month – most of it through passive income streams.
How have they managed to continue their incredible success?
Kelan & Brittany Kline – A Quick Review of Their 2019 Story
In my first report on the Kline’s, Kelan and Brittany – each 28 at the time – and their blog, The Savvy Couple, was up and running for just three years. At that time, they had built the blog into a $100,000-plus income source.
What made this story truly remarkable was that neither had any previous experience running an online business, let alone one generating a six-figure income. Brittany had previously been a teacher, while Kelan had held a series of unrelated jobs including law enforcement. In addition, they live in a small community in upstate New York – hardly a location you might expect to launch a successful online business from.
The blog started out as a way for Kelan and Brittany to show others how to better manage their finances, based on their own experience in providing for their new family on a limited income. With $40,000 in student loan debts, their initial hope was that the blog would eventually produce at least $500 per month in additional income.
But as time went on, the popularity of the blog and the income it generated increased steadily. As it did, and the couple saw the income potential it presented, the Kline’s were eventually able to quit their respective jobs and turned The Savvy Couple into their primary occupations.
Having an online,work-from-home business brought tons of benefits. Free from the constraints of traditional, 9-to-5 jobs, the Kline’s enjoyed control of their schedules, more time with each other and their young daughter, Kallie, a truly creative occupation, and the prospect of unlimited income.
It isn’t hard to see how that combination wasn’t the end of their story. The blog, and its income, have continued to grow since.
Kelan & Brittany Kline in 2023
Kelan and Brittany’s family has expanded to four since 2019, with daughters Kallie, four, and Kennedy, two. Their business success has enabled them to split their business and parenting time. Kelan works mornings and then takes over the parenting role when Kallie comes home from preschool in the afternoon, enabling Brittany to work.
Kelan and Brittany Kline & Family
By their own reckoning, they’re living their dream lives. They wake up when they want, have breakfast with the girls, and set up their daily schedules. They have been intentional about setting up their lives to have as much freedom as possible. That includes taking plenty of days off and going on three or four vacations each year.
“This is definitely a different way for our kids to grow up than how both of us grew up with our parents going to work in the traditional 9-5 every day,” Brittany observes. “We’re working hard on teaching them you can create your own life of freedom with hard work, discipline, and dedication. Even though we work from home or online, we still have responsibilities and deadlines that need to be met.”
Kelan and Brittany Kline in one of their frequent trips to the beach
How the Kline’s have Grown their Business Over the Past Four Years
The Kline’s have implemented four specific strategies to keep their business growing steadily over the past four years.
Leveraging Talent by Building a Dedicated Staff
If you’re a solo entrepreneur, you’ll eventually bump up against the limit of time. After all, there are only so many hours in the day and the number and extent of responsibilities involved in running a small business are practically unlimited. As so many other small business owners have learned, the way to overcome this limitation is by hiring talented individuals to perform an increasing number of necessary tasks.
This has been one of the biggest revelations for the Kline’s, and a critical component of their ability to expand. They managed to add staff, while staying within budget, by employing part-time contractors.
That started, first and foremost, by hiring a virtual assistant (VA). That person functions as a jack of all trades, handling customer service and content writing, among other functions. The Kline’s also work with an editor, as well as a monetization expert who largely handles revenue-generating affiliate arrangements for the site. Tying it all together is an operations manager overseeing the big picture.
Employing these four specialists has freed Kelan and Brittany to only have to work 10-20 hours per week and to concentrate on expanding their business. That has enabled the couple to improve existing product lines, as well as add new ones. They can more easily maintain that focus knowing the day-to-day details of running the business are handled by their part-time staff.
Expanding Within a Very Specific Niche
The Kline’s have been careful to stay within their chosen market niche. For The Savvy Couple website, that includes topics like money management, budgeting, saving money, and investing. But the primary emphasis remains on ways to make more money, specifically through starting profitable side hustles. In an age of inflation, it’s easy to understand why generating additional income is such a popular topic.
“We’ve been writing content in the Making Money Online niche for almost three years,” Kelan reports. “We’ve also focused heavily on search engine optimization (SEO) and solving user intent within that niche. In the process, we’ve consistently attempted to rank for very competitive keywords that are lucrative and support our affiliate marketing channel. This has helped to scale our passive income.”
At the same time, Brittany has been working specifically on developing digital planners, organizers, and printables for their other brand, The Savvy Mama.
Those products include a bundle of planners and organizers that help moms organize, simplify, and generally better control the chaos in their lives. There’s now even a Savvy Mamas Membership Brittany created to help moms stay accountable, which has helped expand their business even further.
“Branching out into something of my own has been terrifying but very exciting,” Brittany reports. “As a mom myself, I know how mothers often face numerous challenges and struggles, as they juggle multiple responsibilities and roles. If I can help alleviate just a little bit of stress and help a mom feel more accomplished in her day, then I believe I‘ve made a positive impact and contributed to her well-being and overall happiness.”
Along the same line, the Kline’s developed another related site, The Savvy Kitchen. The site provides recipes, meal planning, cooking tips, and other resources to help homemakers save money while preparing healthier meals at home.
The Kline’s have also developed The Savvy Couple YouTube channel, which currently has 90 videos and more than 10,000 subscribers. Not only does the channel help generate additional revenue, but it also builds the brand name and provides visitors with additional resources.
Staying Focused and Tracking Time
The emphasis on outsourcing multiple responsibilities to staffers is providing the time for the Kline’s to get better control of their time and the income they generate with it. Unlike when they first started the blog, Kelan and Brittany now pay close attention to the hours they spend in the business, and where that time is concentrated.
“A rule of thumb that we use is to track our hours and how much we’re making on an hourly basis,” says Kelan. “That’s currently over $1,000 per hour for me. So I focus on activities within the business that are $1,000 per hour tasks. I’ve learned that everything I outsource is going to free up my time to focus on growing the business.”
Harnessing Artificial Intelligence (AI) to Grow the Business
When we think of artificial intelligence (AI), it’s almost natural to see it used primarily by large organizations. But Kelan and Brittany are an example of a small business employing AI to help grow their business.
“We came across AI tools back in 2020 while we were searching for ways to improve our content creation systems and processes,” Kelan reports. “We started using Jasper AI and Surfer to create article outlines, write the first draft, come up with titles, unique ideas and perspectives, expand on topics, and more. Our entire team now uses ChatGPT in the content creation process, including YouTube scripts, email marketing, customer service, social media, and more. Two new AI tools we are starting to use are Koala and Surfer AI.”
In fact, AI has become integrated within the business across the board in almost every system and process they have. Kelan reports that the tools continue to get steadily better allowing them to create more content and better serve their audience.
Adjusting to the Changes in Blogging Since 2019
Like virtually every other industry, blogging is an ever-evolving enterprise. And like any business with many success stories, the blogging field has become crowded and competitive in just a few short years.
AI has been one example of a major change in the industry, but there are plenty of others. For example, Kelan and Brittany have been intentional about avoiding the kinds of Google penalties that can torpedo a blog’s revenue. They’ve also increased their focus on creating high quality content.
“I think blogging has become significantly more difficult in the last few years,” reveals Kelan. “I think it would be very hard to get into the game now, especially in a very competitive niche. Google is now looking at ‘EAT’ – which is experience, authority, and trust – and you need to incorporate that into all content on your site.”
“If you’re reviewing products or presenting side hustles,” Kelan continues, “you need hands-on experience with the product, including testing it against others. In that way, you’re providing first-person reviews and experiences. We spend hours upon hours evaluating dozens of side hustles and ways to try various ways to make money online and documenting the process as we do. It’s no longer as simple as opening up WordPress, typing an article, and hoping people see it.”
The Road to Success Isn’t Always a Straight Line – What Hasn’t Worked
Starting a business of any size is a process of fits and starts. That’s as true of blogging as it is of any other business. Even though some efforts are producing positive results, others are heading in the other direction. Kelan and Brittany are now well acquainted with that reality.
While the couple has found success in building web traffic through a combination of SEO and social media and creating revenue streams from display ads and sponsorships, they found some sources work better than others.
For example, sponsorships were an early revenue generator. This is a process of endorsing third-party products and services on the blog. The Kline’s have learned to be much more selective in the products they sponsor on their sites. “We’re now very strategic with the brands we work with and turn down 90% of the offers we get,” offers Kelan. “We never work with a brand unless we personally have used them in the past or are allowed to test them out beforehand. This way we ensure our audience is getting the best-recommended products and services on the market to help them increase their income, manage their money, and reach financial freedom.”
They’ve also run into some rough sledding with some of the products they’ve created and offered. “We basically tried a bunch of different courses at higher prices,” reports Kelan. “We’re talking $100, $200 and $500 per course that we’ve launched to our audience. Many have failed. But that is how you learn and improve. I don’t believe in failure. The only way you can fail is if you don’t learn and improve from your mistakes.”
The Kline’s Income Picture – 2019 and 2023
The chart below presents a clear picture of the income progression of The Savvy Couple since it started earning revenue in 2017. As you can see, income has risen in each year, except 2020 – which as we all know was the year of the Covid-19 Pandemic and subsequent economic shutdown.
But notice that in July, 2019, when I wrote How This 28-Year-Old Couple Quit Their Jobs And Make $100,000 A Year Working From Home, the Kline’s income actually finished the year at over $250,000. It then resumed its growth pattern in 2021, then topped $500,000 in 2022.
Based on the current pace, the Klines expect their three brands under Savvy Media Marketing to earn nearly $1.2 million in 2023, or an average of $100,000 per month.
The Savvy Couple revenues from 2017 to 2023
The pie chart below breaks down the various sources of revenue for the site, as well as the percentage each generates. Revenue from affiliate programs and digital products sales together represent nearly two-thirds of total revenue.
The Savvy Couple revenue sources 2023
The Long-term Plan: Reaching Financial Freedom by 35
Up to this point, Kelan and Brittany’s plan has been to build The Savvy Coupe into a seven-figure business. Now that that’s becoming a reality, the new goal is to reach financial freedom by age 35. That gives them just a few short years to make it happen. But given the success they’ve enjoyed over the past six years, they’re an odds-on bet to reach their goal.
That doesn’t mean the Kline’s plan to ultimately retire from The Savvy Couple. Quite the contrary. The plan is to continue to build web traffic and revenue to all three websites. In the process, they’re working to increase passive income. That’s revenue generated by the blogs with little or no additional effort on their parts.
But as they do, and their income from blogging rolls in, they’re putting more money into the stock market. That’s another part of their ultimate goal of reaching financial freedom at age 35, at least partially from the passive income generated by those investments.
That will enable them to spend even more quality time with family and on personal pursuits. At the same time, they’re developing the blogs to help serve and impact as many people as possible with the mission of creating more time and money to build a life of freedom for the many regular visitors to their websites.
Bottom Line
Despite the increasing challenges in the blogging space, the Kline’s still believe the niche has potential for new entrants. After all, when they launched their blog in 2016 the field was already crowded. Despite that obstacle, they still hit pay dirt.
“Pick your niche, refine it as you move forward, and become an expert and an authority in the field,” advises Kelan. “Focus on SEO from the very beginning, stay connected with your audience, consistently provide new and useful content, and diversify your income sources, and you can still become a successful blogger.”
No, blogging is not as easy as it used to be. But it’s still one of the most popular ways to make money online – even a lot of it – and to achieve financial freedom in the process. The Kline’s are a living example of that.
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This story originally appeared on Business Insider.
Less than a year into his first full-time job out of school, Jason, a 22-year-old software engineer based on the West Coast, decided he wanted to earn some extra money to supplement his $75,000 salary.
Jason’s position was fully remote, and he told Insider he was able to get all his work done in only 10 to 15 hours per week — so he figured he had the time to do something else.
He thought about trying out a side hustle like growing microgreens, taking odd jobs posted on Craigslist, or doing freelance programming work, but said he ultimately decided to look for a second full-time or part-time job.
In November of 2021, he started a second full-time remote software engineering role. Today, he said he typically works 20 to 30 hours a week total across the two jobs and earned a combined $144,000 last year, according to documents viewed by Insider.
And he hasn’t told either employer he’s double-dipping. Jason’s real name is known to Insider but has been excluded to avoid any professional repercussions.
“I wanted to increase my income,” he said. “I felt my workload at my first job was low enough, and I knew that if I couldn’t handle it then I could simply quit one of the jobs.”
While juggling two roles can be stressful at times — like when he has overlapping meetings or receives unexpected work — Jason said that in some ways, his working arrangement reduces his stress.
“I’m more willing to say ‘No’ to tasks at one of my jobs since I know I have a backup job,” he said.
Jason is one of many Americans who have taken on additional work in part due to high inflation, but he’s among a smaller group of white-collar workers secretly holding multiple full-time remote jobs to, in many cases, double their salaries.
But the window to pull this off may be closing, as many companies are calling employees back to the office and listing fewer fully remote positions. As of March, roughly 13% of job postings were remote, according to the staffing firm Manpower Group, down from 17% in March 2022 but up from the pre-pandemic level of 4%.
And as knowledge of this phenomenon grows, some members of the overemployment community are worried they’ll eventually be found out. While holding two jobs at once doesn’t violate federal or state laws, it could breach employment contracts and get people fired, employment lawyers told The Wall Street Journal. It’s already happened to some workers.
The desk in his apartment where Jason usually works. Jason via BI
5 strategies to work two remote jobs and get away with it
Jason said he uses five different strategies to juggle both jobs and not get caught.
First, he said he tries to overestimate how long his tasks will take to give himself more time to manage the workload from both jobs.
“If I finish a task, I will hold on to it for a while before I submit it for review,” he said.
Second, he said he makes sure he doesn’t overperform at his jobs and attract extra attention and assignments.
“Whenever possible, I try to seem somewhat incompetent so that my coworkers are more understanding when I take a while to finish a task and so they don’t give me lots of difficult tasks,” he said.
Third, Jason said he dedicates less time to some work when he can get away with it.
“There are certain tasks I have like reviewing other people’s work, so sometimes I will not properly review their work so that I have more time to work at my other job,” he said.
Fourth, he said he’s learned to turn down projects.
“Whenever I get asked to take on more work, I will sometimes say ‘No’ since I already have work on my plate,” he said.
Fifth, he said he makes sure his colleagues are aware when the completion of his tasks is being held up by others.
“Whenever this happens, I make sure to mention this to my coworkers and managers so that they expect the work to be delayed,” he said.
Why he’s not worried about an overemployment crackdown
Since taking on two full-time remote jobs, Jason said he has immersed himself in the “overemployed community” online — the r/Overemployed subreddit has 176,000 members.
He said many members of the community are concerned about overemployment becoming too widespread or receiving too much press, because then employers might work to identify and crack down on these employees.
But Jason said he’s never been particularly concerned about this.
“I didn’t think enough people would be able to manage overemployment either because of their career, specific job, stress tolerance, desire to work more, etc and I still think that’s true,” he said, adding that he doesn’t think most employers would care enough to crack down on it — particularly if their employees are getting their work done.
Going forward, Jason said that he hopes to dedicate more of his time to a new business he started last December, though it’s still in the early stages.
In the meantime, he said he plans to continues to keep working at both jobs, and that the extra income has helped him have the financial security and life he desires. He said he’s pretty frugal — he doesn’t own a car, rarely goes out to eat, and lives in a one-bedroom apartment that costs $1,200 a month.
“For me, my current lifestyle feels like I’ve made it because I pretty much have everything I want,” he said.
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Passive income sounds magical, but is it really better than active income? And what exactly is the difference between active and passive income?
Discover: 6 Types of Retirement Income That Aren’t Taxable
Learn: How To Build Your Savings From Scratch
We’ll define both and show you the differences, including which types of income qualify as active and which are passive. Both incomes are required throughout your lifetime, but combining the power of both can help you reach financial independence much faster.
Active Income vs. Passive Income: What’s the Difference?
While both types of income require some sort of work, they are fundamentally different.
Active income requires you to materially participate in a work-related activity to earn money, while passive income comes from owning income-producing assets. You typically need to earn active income first to generate the funds needed to invest in passive income assets.
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What Is Active Income?
Active income is the process of working for money and includes things like wages, salary, tips, commissions, freelance income, side hustle income and other work-related income. In most cases, you are trading your time for money.
What Is Passive Income?
Passive income includes earning income without being required to participate in a work-related activity. This includes income from sources like investments, dividends, real estate rentals, business ownership, online businesses, courses, downloadable content, existing YouTube channel, website display ads, affiliate marketing and more.
Examples of Active Income
Here are a few examples of ways to earn active income:
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Your job. The most common way to earn active income is through your job. Whether you are paid hourly or an annual salary, you show up to work, do your job and get paid.
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Your business. If you own a business and haven’t hired an operator and management team to handle all of the day-to-day tasks, then you are earning active income. If you are handling any aspect of the business operations, such as sales calls or providing a service, this is considered active.
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Freelance work. Freelance work is considered active income, as you are providing a service for pay. This might include freelance video editing, writing, software development, legal consulting or any other type of contract work.
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Gig economy work. Jobs like driving for Uber or Doordash, pet sitting, housesitting or other gig economy jobs qualify as active income.
Examples of Passive Income
Here are a few examples of ways to earn active income:
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Traditional investments. Investing in the stock market puts your money to work, and you can earn interest, dividends and capital gains from your investments. This is a completely passive activity, allowing you to earn money without doing anything more than investing your funds.
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Bank Interest. When you deposit your money in a savings account, you can earn passive income based on the account interest rate. Even better, finding a high-yield savings account will pay you a higher rate without having to lift a finger. This is truly passive income.
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Dividends. Whether you earn dividends from investing in a stock or bond, or if it’s from a business you own, dividends are paid without you needing to work for them. For traditional investments, these are typically paid out on a quarterly or monthly basis.
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Rental real estate. Rental real estate is one of the best ways to earn passive income, though you do need to invest funds (and time) into getting the property rented and managed. While real estate may require some of your time, once it is rented out and you hire a management team, it can be nearly 100% hands-off income.
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Online income. While building an online business takes a lot of time, once you have established a system for generating leads and income, you can automate a lot of the process. For larger online businesses, hiring an operations and leadership team can help you simply collect income without participating in the business.
How Are Passive Income and Active Income Taxed?
Active income and passive income are treated differently by the IRS. While active income is typically taxed at your normal income tax rates (and taken from your paycheck directly), passive income taxes can vary, depending on how the income is generated.
Passive income can be taxed at a lower rate, at your regular income tax rate or even at a higher rate, depending on how it is earned. Because investment rules vary widely, it’s best to work with a licensed tax professional when managing taxes for passive income streams.
How Combining Active and Passive Income Helps You Earn More
While active income is the most common way to earn money, passive income helps you earn money without putting in any extra work.
But what if you did both?
Focusing on increasing your active income can help you save more money each month. You can then use the savings to invest in income-generating assets such as investments, businesses, rental real estate or even just depositing it into a high-interest account.
The more you invest into passive income, the higher your annual earnings will be. Eventually, your investments might outpace your active income, and then you will become financially independent, able to live on your passive income alone.
Here’s how combining your active and passive income can raise your overall income:
Over the next five years, if your investments provide an average return of 8% per year, you’ll end up with over $45,000. These funds earning 8% per year can now earn $3,600 in the next year. That’s the equivalent of giving yourself a $1.73 raise, without doing any extra work.
Bottom Line
Both active and passive income are necessary to increase your income and eventually be able to retire. You will most likely start with active income, working for a company, and then slowly transition to passive income over time.
Eventually, you will retire and live 100% on passive income. But you need to start investing in income-producing assets today to build your passive income. This is a long-term strategy — and one that’s required to have a comfortable retirement.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: What’s the Difference Between Active and Passive Income, and Why Should You Care?
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If you’re looking to elevate your lifestyle, enjoy greater financial freedom, and have a more flexible work-life balance, creating passive sources of income can be the answer you’re looking for.
One of the ways to create wealth is to have several income sources. Sixty-five per cent of millionaires have at least three streams of income, according to author and accountant Tom Corley.
Passive income is a type of earnings that requires minimal ongoing effort to maintain. It’s often seen as a way to achieve financial freedom, as it can provide a steady stream of revenue without the need for constant work or direct involvement.
However, building passive income streams typically requires an initial investment of time, money, or both to establish and grow the source of earnings.
Let’s explore some of the top sources of passive income in Canada. Here are some valuable insights and tips to help you design a passive income strategy you can start today.
DIVIDEND STOCKS
When you invest in dividend stocks, you buy shares in companies that pay out part of their earnings to shareholders like you. Pick companies with a strong history of paying decent dividends. Dividends are usually paid quarterly, giving you a nice, steady cash flow.
REAL ESTATE INVESTMENT TRUSTS (REITs)
REITs let you invest in income-producing properties without actually owning or managing them. They make money through rent and property appreciation and pay out dividends monthly.
A good way to research dividend stocks and REITs is by using stock screeners. You can filter the stocks based on specific criteria, such as dividend yield, dividend growth rate, market capitalization and payout ratio. Examples of stock screeners include Finviz and Yahoo Finance. Stock screeners usually have news sections about the stock so you can stay current with it.
BONDS AND FIXED-INCOME INVESTMENTS
These investments, like government or corporate bonds and Guaranteed Investment Certificates (GICs), pay you regular interest and return your principal when they mature. By building a diverse portfolio, you’ll get a predictable passive income with less risk.
RENTAL PROPERTIES
When you buy rental properties, you’re making money by renting them to tenants. You’ll get a steady stream of passive income through rent, and your property may even grow in value. You can choose to manage everything yourself or hire a property management company to take care of it.
ONLINE BUSINESSES
This category includes ventures like e-commerce stores and affiliate marketing websites. Once you’ve set up your online business, you can earn passive income through sales, ads, or commissions. It takes some effort to start, but the earning potential and flexibility can be worth it.
HIGH-INTEREST SAVINGS ACCOUNTS
These accounts, offered by banks and credit unions, pay you higher interest rates than regular savings accounts. Just deposit your money and watch your passive income grow through interest earnings while keeping your funds accessible and low-risk.
ROYALTIES
When you create something like a book, music, software, or patent and then license it to others, you’ll earn royalties. These are payments made each time your work is used or sold, giving you a nice source of passive income.
BLOGGING
When you start a blog, you’ll be writing about a topic you love and sharing your knowledge with others. As your blog gains traction, you can monetize it through ads, sponsored content, or affiliate marketing. It will take some time to build an audience, but a successful blog can provide a solid source of passive income. I started a Canadian personal finance blog several years ago that generates passive income for me.
ANNUITIES
Annuities are financial products from insurance companies that guarantee you a stream of income for a certain period or even for life. You can buy annuities with a lump-sum payment or a series of payments and choose between immediate or deferred options based on your needs.
EXCHANGE-TRADED FUNDS (ETFs)
ETFs are investment funds that hold a mix of stocks, bonds, or other assets. They trade on stock exchanges just like regular stocks. By investing in ETFs, you can easily diversify your portfolio and earn passive income through dividends and potential capital appreciation.
ROBO ADVISORS
These automated investment platforms use algorithms to build and manage a diversified portfolio for you based on your risk tolerance and financial goals. By investing with a robo-advisor, you’ll earn passive income through dividends, interest, and capital appreciation while benefiting from professional portfolio management and low fees.
VENDING MACHINES
If you own and operate vending machines, you’ll buy or lease machines, stock them with products, and take care of maintenance. As people purchase items from your machines, you’ll earn passive income from the sales.
YOUTUBE CHANNEL
Starting a YouTube channel means creating and sharing videos on a topic you’re passionate about. As your channel gains viewers and subscribers, you can monetize it through ads, sponsorships, or even affiliate marketing. It takes time and effort to grow, but a successful YouTube channel can generate a nice stream of passive income. I have a small YouTube channel that is still generating revenue on videos I made years ago.
STOCK PHOTOGRAPHY AND VIDEOGRAPHY
If you have a talent for photography or videography, you can sell your images or footage on stock photo and video platforms. Each time someone downloads or purchases your work, you’ll earn royalties, creating a passive income stream. It may require an initial effort to build your portfolio, but as your collection grows, so does your earning potential.
FINAL THOUGHTS
Passive income is a powerful tool that can truly transform your financial landscape, providing you with the freedom and flexibility to pursue your passions and live life on your terms. By taking advantage of the top sources of passive income in Canada, you’ll be well on your way to securing a brighter, more prosperous future.
Remember, the journey to financial independence is a marathon, not a sprint, and it requires dedication, patience, and smart decision-making.
Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his Wealth Awesome website.
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