How to Get Rich With a Normal Job?

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How to Get Rich With Your Normal Day

Are you wondering how to get rich with a normal job? 

Is it even possible? 

There are many high-paying jobs in the World.

Most high-paying jobs involve devoting years of one’s life to higher education and or learning specialized skills often in the field of medicine, law, and technology. 

Check out this list of high-income earning jobs HERE if you are curious. 

These high-paying jobs pay anywhere between $145,000 and $208,00 a year.

No wonder your mother wants you to marry a lawyer or a doctor, or become one!

Financial security. Right?

Wrong. A person making six figures at a normal job can also be broke.


If they have more liabilities than assets. 

To build wealth, you need more assets than liabilities in your life. Assets that put cash in your wallet. 

"An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket."

Example of an asset: a rental income property, Index fund, a business.

Example of liability: credit card debt, a mortgage, student loans, and fifty pairs of Jimmy Choo shoes. 

Don’t be like Carrie Bradshaw! Pouring all your hard-earned income into fancy shoes that make you look rich but are actually making you broke.

So what should a bougie broke girl do?  

How do you get rich with a normal job?

Whether you are a sex columnist, administrative assistant, or doctor, your ordinary income is not going to make you wealthy unless you use it to your advantage. 

Stop wasting your cash on liabilities. And start making your money work for you by acquiring assets that make your money grow!

This article will teach you why you can’t get rich on your normal job’s income alone. Why how you make money matters!  And what you can do about it. 

Let’s kick things off by learning the different types of income and how they are taxed differently. 


Because taxes are your biggest expense. 

  • It’s vitally important to know how you are taxed. 
  • How you are taxed determines how much money you have available.
  • Money to buy assets.
  • Assets that can make you rich. Not faux rich. 

What are the different types of income?

The most common income earned among the bougie broke and the middle class is ordinary income.

Ordinary income: from an employer can be hourly wages, annual salary, commissions or bonuses. If you work for yourself, your ordinary income would be your self-employment earnings. The IRS taxes income differently based on the type of earnings individuals and businesses receive. Earnings can be categorized as either ordinary income (earned income) or unearned income (passive income).

Give me an example!

Let’s say, Rachel Lee is a 35-year-old single lady who makes $100,000 a year as a family doctor. At 24% tax bracket + FICA.  She is looking at paying nearly $22,695 in taxes with take-home pay of $72,921. 

Yikes! $22k in taxes. Money that could’ve been used to pay off consumer debts, lower liabilities, and buy assets.

See also  7 Financial Steps I Wish I Knew Before I Started a Business from Scratch. 

You can use this handy dandy calculator to see your estimated income taxes based on your ordinary income 

There is nothing wrong with earning ordinary income from a normal job! Heck, that’s how most people do it. But it’s not the path to riches. 

What if you are self-employed?

Being self-employed has its perks, including tax write-offs but there is something else to consider.

The addition of the Self- Employment tax at 15.3%  Ugh! Don’t forget to pay this tax, it’ll bite you in the** if you don’t account for it. 

Who pays higher taxes, an employee or an independent contractor?

If you are self-employed, you may be taxed higher than your employee counterparts!

Depending on your business structure. Despite the benefits of write-offs, you could be forking over more taxes overall due to self-employment tax. 

That’s why it’s paramount to leverage your business’s entity structure to your tax advantage.

What can you do about it?

You’ve got three options:

  1. Stay with your current tax status and don’t do anything. Just pay all those taxes.
  2. If you are self-employed, learn more about business structures and how to leverage them legally for tax-saving purposes. Good article here
  3. If you are self-employed or an employee. You can use your ordinary income to buy assets that earn you money differently and have amazing tax incentives.

How do the rich earn income differently? Why do the rich get richer and the poor get poorer?

The rich get richer because they earn income that is anything but ordinary.

They receive income through portfolio income and or passive income. All of which have MAJOR tax advantages.

The government incentives entrepreneurs and investors.

Those who put their money toward adding more housing, investing and running businesses, providing products and jobs, and contributing to the growth of the economy with such things as renewable resources.

"The tax code is full of incentives that are meant to guide your investments and provide significant returns for both you and the world we live in."

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What are the other types of income?

Passive and portfolio income. The type of income that leads to wealth and paying fewer taxes.

Passive income includes regular earnings from a source other than an employer or contractor. The Internal Revenue Service (IRS) says passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.

Passive income is not…

  • Your job. Generally, passive income is not income that comes from something you’ve been materially involved in such as the wages you earn from a job.
  • A second job. Getting a second job isn’t going to qualify as a passive income stream because you’ll still need to show up and do the work to get paid. Passive income is about creating a consistent stream of income without you having to do a lot of work to get it.
  • Non-income producing assets. Investing can be a great way to generate passive income, but only if the assets you own pay dividends or interest. Non-dividend paying stocks or assets like cryptocurrencies may be exciting, but they won’t earn you passive income. 

Passive vs Active Income

Passive vs Active Income

Examples of passive income:

Passive Income Ideas

What is portfolio income?

Portfolio income is money received from investments, dividends, interest, and capital gains. Royalties received from investment property also are considered portfolio income sources.

In general, think of portfolio income as money you’ve earned via investing in vehicles like stocks, bonds, funds, real estate and other investments.

Examples of portfolio income:

Investment Examples

What is the difference between passive and portfolio income?

Passive income is income earned from rents, royalties, and stakes in limited partnerships. Portfolio income is income from dividends, interest, and capital gains from stock sales.

Why is passive and portfolio income better than ordinary income from a normal job?

There are so many reason why! 

  1. It’s typically taxed at a lower rate, anywhere between 0 – 20%, depending on the tax specific situation.
  2. Less sweat equity. Money working for you and instead of you working for it at a 9-5 job.
  3. You gain more time ! And time is worth more than money! 
  4. It can off-set your ordinary income, saving you taxes. 
  5. The government incentives business owners and those with passive and portfolio income
  6. There is a thing called phantom income, that puts even more money in your pocket from appreciation, depreciation and amortization. 
See also  My Guest Appearance on "Everyone's Talkin' Money" Podcast

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Show me how it would work in real life…

Let’s refer back to Rachel Lee at the beginning of this article. 

Rachel Lee is a single woman 35 year old Family Doctor making $100k a year as an employee paying 24% in taxes. She wants to pay less taxes and start making her money work for her! 

  • First she decides to transition from being an employee to a business owner. 
  • Owning her own practice through an LLC taxed as S-corporation election.
  • She hires a reliable and trustworthy CPA and Tax attorney to help her with this process.
  • (It is vitally important to have a CPA and Tax Attorney help you with tax planning in advance of executing any tax strategies)
  • Her salary is now $50,000 with another $50,000 being paid as a distribution, which excludes self employment and corporate taxes.
  • She is still making $100k per year but she is paying less taxes ethically and legally!
  • Which means more money for her!  
Watch this video to learn the power of the S-Corp.

Let’s say she saves $6,000 in tax payments just by changing how she is taxed. 

Rachel Lee can now take that extra $6,000 and invest it into an asset! 

She chooses to put the money into an S&P 500 index fund via a Roth IRA. 

Without making ANY another other contributions. 

The S&P 500's average annual returns over the past decade have come in at around 14.7%, beating the long-term historic average of 10.7% since the benchmark index was introduced 65 years ago.

$6,000 at 10% interest over 25 years. Here initial investment is worth $65,000.

Without paying any capital gains! All tax free!

She is $65,000 richer!

How do I start using my ordinary income to earn passive and portfolio income, now?

First, you must invest in YOU and your financial education. 

Here is a link to the 12 Books That Changed My Financial Life and I hope they can help you too! 

A financial education cost very little upfront but can be worth millions!

Don’t expect a CPA or Financial advisor to know everything.

You must gain financial literacy yourself so you can talk about money and how you are going to make more of it.

Financial literacy gives you the confidence to make smart money choices!

You’ve got to willing to learn about taxes too! It’s one of the biggest factors that will effect your overall ability to create wealth. 

Next, I am not a tax or financial advisor but my advice is to hire some pros! 

Invest in an awesome CPA, Tax Attorney and Financial Advisor!

If you want to get rich. You will need these three people on your support team.

All of them are either going to make you richer or poorer. 

There are plenty of helpful, ethical tax accountants and lawyers that will support you in achieving legal tax strategies.

The upfront cost of hiring a pro can save you thousands down the road!

The best thing I ever did for myself was hire a CPA firm to support me as I’ve grown my business and put smart tax strategies into action. 

Also, I highly recommend checking out Mark Kohler

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He provides great advice on how to save on taxes especially for small business owners. I watch his videos all the time and have personally used his legal tax services for my business.

Lastly, get your house in order.

If you have too many liabilities in your life, like credit card debt, pay off that sh*t fast. 

So you can start buying more assets. Assets that will help you to finally start living the life you have always dreamed of.

A life you love! Jimmy Choo shoes and all.

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Writer Whitney Ellis

Hi I'm Whitney.

Tired of always being broke? Sick of struggling with money? 

Want to learn the hidden secrets of money? 

Don’t know where to begin? 

Learn how to think, act and become FINANCIALLY CONFIDENT!


It's time to take action NOW
& get real life RESULTS.

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