Here is a baffling fact.
The average person spends more on taxes than they do on clothes, shelter, and food combined.
And no matter how much you make, the taxes go up, which means you can still be living paycheck to paycheck even though you make an impressive income.
What good is it to earn a lot of money if you don’t get to keep it?
There are ways you can bring more money into your life and stop struggling financially.
From our experience here at BG Wealth Group, the best way to put more money into your pocket is to own a business.
You may be thinking, “But I have a job. I can’t start a business!”
Here is our thinking.
Everyone would start a business if they truly understood how much business owners benefit from lower tax rates.
And it is not just a little bit lower.
When you make a few shifts in your mindset and how you manage your own accounting, you can see a dramatic difference that will allow you to start creating wealth for yourself and your family.
No longer will your money slip through your fingers like sand.
“Am I getting a refund, or do I owe money?”
Many people ask themselves that question around tax time, and it is an OK place to start.
If you owe money, that’s a concern. If you get a refund, that’s great. But how big will it be?
Wouldn’t it be better if you could have more control over the situation?
And wouldn’t it be better if that refund of yours was MUCH bigger?
How to increase the size of your refund every year
As an employee, you may not be completely aware of how much money is lopped off the top of your paycheck because it is taken out automatically before you can see it.
Here is a simple example.
If your income is $80,000, you’ll probably pay up to 25% of your income in tax, meaning $20,000 of your income is lost each year to tax.
(These numbers vary across the United States and Canada, so please note that).
As an employee, you can easily have $10,000 or $20,000 taken out in taxes by the end of the year. If you earn more, it can be double or triple that amount.
Now, there are some people who believe that the government will spend their money wisely, and perhaps that is the case, depending on where you are, but if you are in a wealth-building mindset, you quickly realize that it’s easy and more profitable to create a system where you can write off many of your taxes through starting a business.
And starting that business can have its own benefit for the country you live and work in. Depending on the scale of the business you start, you can create jobs and other forms of economic stimulus that don’t involve paying taxes on every penny you make.
Further, most people have some sort of dream for a business – even if it’s as simple as managing a vacation rental as an investment or baking cupcakes, all of which stimulate local economies in various ways.
Now imagine getting that money back at tax time.
What kind of a difference would it make in your life if you had a $20,000 increase in the money you put in your pocket?
You can make it happen when you open a small business and start off working a few hours a week. You don’t have to devote all your time, quit your job or do anything drastic.
You can take your time and grow that business into something bigger.
One day, this little Plan B could become your Plan A.
Is there something in your life you love and could share with other people?
That thing may be something that can generate income for you.
You don’t need to make a lot of income for this plan to work.
To be considered “in business” (and therefore benefit from the tax savings), all you must do is earn business income – even if that is only one dollar – and have the intention to grow your business into something larger.
You can start generating large tax savings year after year by writing off your expenses
Most business owners don’t realize how much they can write off.
Almost everything you spend can be written off against a business!
One of our clients at BG Wealth Group was an employee with a full-time job. The year before working with our system and our strategies, this individual had a $2,000 refund.
That’s not bad. They were happy they were getting a $2,000 refund.
But then, the first year after starting a business, everything they spent related to this business became a write-off, and they were able to generate an $18,000 refund!
They increased their income that year 9-times *and* realized a dream they had been sitting on far too long. This entrepreneurial approach benefits everyone involved.
Start by ensuring that your money is being spent in such a way that can generate refunds.
This is not a recommendation to go out and spend more money to generate a tax refund, but instead to rethink the money you’re already spending.
Our Co-Founder & CEO Craig Dunkerley has written a great resource on this approach entitled Tax Mastery. Download your complimentary copy to get specific ideas on where to dig for these big tax write-offs that go beyond Post-its and printer cartridges.
In the book, Craig provides a framework for generating a more efficient tax strategy:
- Giving specific scenarios where the money you spend on everyday items can be considered a tax write-off.
- Suggesting painless tweaks in how you manage your money so that you earn a hefty tax deduction for each of your children and generate money to spend on activities (that aren’t tax deductible).
- Presenting a strategy for how you can enjoy life, eat out with your loved ones, travel, enjoy good food, and write those expenses off under your business.
- Giving you THE BEST business structures that support this strategy.
Give yourself a raise.
If you were an employee and walked into your boss’s office and demanded an immediate 25% increase in pay, you would probably get rejected (and maybe laughed at).
But if it won’t come from your employer, how about your 25% raise comes back to you in taxes?
In some ways, that’s even better than getting an increase in pay because expenses claimed will reduce your tax and, in many cases, even lower your tax bracket.
You may have time to make these changes in time for taxes this year. If not, make a plan for next year.
If you want more information or guidance on how to make this life-changing shift in how you relate to money, contact us here, and we will get you scheduled for a one-on-one session with an Associate.
