Yet, he was building capital. If you try to put away as much money as possible by living as frugally as possible, that does not make your financial situation ‘bad’.
Comment on I literally can't even afford dinner everyday in Paris!
Bishma@discuss.tchncs.de 6 days ago
A friend of mine was in this situation once. He had an LLC that was making good revenue but all of it was being used to grow the business. I don’t know if the laws are still the same, but back then because it was a single owner LLC all the profit counted as income for my friend. On paper he was making loads of money, but in practice he was still eating ramen and renting a small apartment.
ftbd@feddit.org 5 days ago
Bishma@discuss.tchncs.de 5 days ago
Bad isn’t the stipulation, paycheck-to-paycheck is. And has said that if covid had hit back then he would have been couch surfing within a month.
Hacksaw@lemmy.ca 5 days ago
When you invest money back in the company that’s either R&D or capital expenditure, both are tax deductible and don’t count as profit.
mech@feddit.org 6 days ago
My last boss was a bit like this.
He owned a small company with 7 employees, paid himself less than he paid us, and was in more debt than his house was worth.
So on paper he had less income and had a lower net worth than me.
But he still lived in a big house while I was renting.
And the company was growing as well.
I still wouldn’t want to trade places with him.