Tag: income

How does a lifestyle business differ from a Startup?

January 14, 2023
/ Leave a Comment on How does a lifestyle business differ from a Startup?

5 min
12 months
872 words

Tagged Digital, flexibility, freelancing, income, Lifestyle Business

How does a lifestyle business differ from a Startup?

Like every business, lifestyle business also has both merits and demerits. A lifestyle business is to bring changes in income and support the family.

Author: Jaya Ambika

Keywords:- Lifestyle Business, skills, startup, passion, schedule, flexibility, income, digital, freelancing

Lifestyle Business

A business will attain success when spending more time and putting in full effort. More than that, you should compete with all your competitors to promote your products. Financial availability is also important to run a business. Without all these, you can earn income with little effort in a business lifestyle business. No need to work from 9 to 5 daily. You can work freely and flexibly on your own time. Most people are willing to work like this. This has made changes in many people’s lives.

What is a Lifestyle business?

A Lifestyle business is a freedom-focused business to earn income to sustain a lifestyle that you want to live. You can start and run a business from anywhere at any time. Starting a lifestyle business is an easy and simple one. The business may be creating and selling digital courses on photo editing, freelancing, app development, influencer, starting an eCommerce business drop shipping, etc. All you need to start a lifestyle business is a laptop or PC and the internet. You can run your business from your home in a small town. Lifestyle business has changed people to turn their skills and hobbies into a business.

How to start a lifestyle business?

Before starting a lifestyle business, you have to do a self-assessment.

Identify skills

First, find the area or skill in which you are an expert. It depends on many factors like knowledge, passion, and how you want to work. For example, if you are good at photo editing then you can choose photo editing as your business.

Have right tools

After selecting the skill to start a business, the next is you have to select the appropriate tools to work. For the above example, you need a laptop or PC, photo editing software, the internet, and active social media accounts. Social media account helps you to grow your business.

Highlight skills

To get business orders you have to promote yourself to the clients. For the photo editing example, you can promote either by creating a website or by registering on freelancing sites with your skills. You can mention the photo editing software in which you are an expert.

How lifestyle business differs from a startup?

Startup business founders wanted to find solutions for the problem they are passionate about. If they get successful, then they will sell it to earn income.

But lifestyle businesses are started to boost the quality of their life or to lead a particular lifestyle.

A lifestyle business is a freedom focused. But the startup is a growth-oriented business.
It is mostly run by a single person or uses freelancers for some of its tasks like content writing, marketing, etc. But a startup hires a bigger team for its various functions like marketing, sales, engineering, etc.
The resources required for lifestyle are minimum and are a low-risk business. A startup needs venture funding to get started and is a high-risk business.
The founder has full control of the business. In a startup founder has no full control because there are investors to whom he has to report the growth details.

Advantages of lifestyle business:

Work schedule

You can work at any time when you are free from all your commitments. No need to work daily. If you get a work order, you will work.

Time spent at home

You will get time to spend with your families, friends, and relations. The business allows you to work from anywhere so you can enjoy your family vacation along with your work.

Explore your passion

Most people are bored and tired of doing the same type of work. A lifestyle business is converting your hobby into a business. So you will not get bored doing your hobby. You will try to learn about new things.

Income

The income you are earning is based on the time and effort you are putting into the business.

Disadvantages of a lifestyle business

Fluctuating Salary

Fluctuating salary is one of the main drawbacks. Each month you will get different income based on the work scheduled for you. If you are quitting your regular work and starting your business then you should be able to tackle all the situations.

Work Schedule

There is no regular time to work as in regular jobs. You have to wait until your business starts to run smoothly. Then only you can schedule the work.

Responsibility

The success or failure of the business depends on you. You should take responsibility and should be able to overcome failures. But some people neglect to accept the failures.

Conclusion

Like every business, lifestyle business also has both merits and demerits. A lifestyle business is to bring changes in income and support the family. You can do your passion in your own time in addition to your work also. After getting the success you can quit the job and go with your passion. Everyone likes to turn their passion into a business. Before entering into business have an analysis about your passion and then do it. Like the proverb, “Try, try, try until you get succeed”.

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What is Economic Inequality? The Overview

Article

September 27, 2022
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6 min
1 year
1,168 word

Tagged Economic Inequality, Equality, income, pay, Society

What is Economic Inequality? The Overview

Keeping economic inequality in check is an uphill battle. Unfortunately, economic inequality has happened in history and is still prevalent today. The richest people and countries are only growing wealthier and the poorest people and countries are growing poorer and poorer every day.

Keywords:- Economic Inequality, society, equality, income, pay, wealth, poverty

Written By: Tanishka Ranjan

Increasing economic inequality in recent years has triggered an outpouring of analysis and reflection on the causes and consequences. It is the unequal distribution of income, wealth, prestige, well-being etc. across the given population. It is a concern in almost all the countries around the world.

Growing economic inequalities serves to fragment the sense of who we are. People increasingly think of society as consisting of ‘US’ and ‘THEM’. A certain degree of economic inequality is probably built into the capitalist economic system. But this inequality can be tempered by appropriate government policies.

INTRODUCTION TO ECONOMIC INEQUALITY

Economic inequality is the unequal distribution of income and opportunity between different groups in society or either we can say that Economic inequality is how unevenly income, wealth, prestige, well-being etc. are distributed across a given population. The less equal the distribution, the higher inequality is.

However, people‘s economic positions are also related to other characteristics, such as whether or not they have a disability, their ethnic background, or whether they are a man or a woman. In both popular and academic writing and public debates, many see increasing inequality in the distribution of income and have it as an important social problem.

HISTORY

Economic inequality between nations peaked in the 1970s when world income was distributed bimodally into ‘RICH’ and ‘POOR’ countries. Since then, income levels across countries have been converging.

Although there is a very long history of concern with economic inequality, interest in this topic has intensified significantly since the great recession of 2008 to 2009. In the year 1961, The share of the total wealth of the top 1% was fairly constant at around 12%. By the year 1991, the share of the total wealth of the bottom 50% fell marginally to 10.9% from 12.3%. It steadily increased and reached 42.5% in 2020.

TYPES OF ECONOMIC INEQUALITY

There are three main types of economic inequality:

Income Inequality: It is the extent to which income is distributed evenly in a group of people. Income is not just the money received through pay, but all the money received from employment (wages, salaries, bonuses etc). Investments, such as interest on saving accounts and dividends from shares of stocks, savings, state benefits, pensions (state, personal, company) and rent.
Play Inequality: It is difference between people’s pay and this may be within one company or across all payments received. A person’s pay is different from their income. Pay refers to the payment from employment only. This can be on an early, monthly or annual basis, is typically paid weekly or monthly and may also include bonuses.
Wealth Inequality: It refers to the unequal distribution of assets in a group of people. Wealth refers to the total amount of assets of an individual or household. This may include financial assets, such as bonds and stocks, property and private pensions.

COMMONLY USED MEASURES OF ECONOMIC INEQUALITY

Gini Coefficient – It measures inequality across the whole of society rather than simply comparing different income groups.
Ratio Measures – It compares how much people at one level of the income distribution have compared to people at another.
Palma Ratio – It is the ratio of the income share of the top 10% to that of the bottom 40%.

CAUSES

There are many reasons for economic inequality within societies. These causes are often interrelated, non-linear, and complex. Among the acknowledged factors that impact economic inequality in some parts are the labour market, innate ability, education, race, gender, culture, wealth condensation, and development patterns.

The labour market – One of the major reasons there is economic inequality within modern market economies is because wages are determined by a market, and are hence influenced by supply and demand.
Inner ability – Many people believe that there is a connection between differences in innate ability, such as intelligence, strength, or charisma, and between an individual’s level of wealth.
Education – One important factor in the creation of inequality is the variable ability of individuals to get an education. Education, especially education in an area where there is a high demand for workers, creates high wages for those with this education. Contrariwise, those who are unable to afford an education generally receive much lower wages.
Gender, Race and Culture – The existence of different genders, races and cultures within a society is also thought to contribute to economic inequality.
Wealth condensation – According to this, those who already hold wealth have the means to invest in new sources of creating wealth or to otherwise leverage the accumulation of wealth, thus are the beneficiaries of the new wealth. This is reflected in the common saying ‘the rich get richer and the poor get poorer.
Development patterns – Countries with low levels of development have relatively equal distributions of wealth. As a country develops, it acquires more capital, which leads to the owners of this capital having more wealth and income and introducing inequality.

EFFECTS

Social cohesion – In more equal societies, people are much more likely to trust each other, measures of social capital suggest greater community involvement, and homicide rates are consistently lower.
Population health – It is not only the poor who tend to be sick when everyone else is healthy but there is a continual gradient, from the top to the bottom of the socio-economic ladder, relating status to health.
Utility, Economic welfare, and Distributive efficiency – Economic inequality is thought to reduce distributive efficiency within society. That is to say, inequality reduces the total personal utility because of the decreasing marginal utility of wealth.
Economic incentives – One of the main reasons that inequality might induce economic incentives is because material well-being and conspicuous consumption are related to status. In this view, high stratification of income (high inequality) creates high amounts of social stratification, leading to greater competition for status.
Economic growth – Inequality reduces growth in poor countries and promotes growth in rich ones.

SOLUTIONS

The government must become the employer of last resort.
Applying fiscal and monetary policies aggressively to achieve full employment.
Taking actions against countries that manage their currencies to subsidise their exports to us and tax our exports to them.
By supporting sectoral training, apprenticeships, and earn-while-you-learn programs.
Providing better oversight of financial markets.
Maintaining and strengthening safety net programs like the EITC and CTC, SNAP, and Medicaid.
Reducing the rate at which high-income taxpayers can take tax deductions, imposing a small tax on financial market transactions.

CONCLUSION

This needs to be changed in our society. Policies that address income inequality can focus narrowly on individual skills, opportunities, and aspirations. Or it may focus more broadly on altering the social, political, and economic structures that create and maintain income inequality.

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