In his best selling book, "Rich Dad, Poor Dad", Robert Kiyosaki warns people against the dangers of buying what he calls "doodads" - you know, junk, spur of the moment items. Those things that you didn't know existed until you read about them in an in-flight shopping catalogue and now that you know about them: you just can't live with out one.
Many people have basements that are packed with such items as electric pet feeders, remote-controlled shoulder massagers, barely-used camping equipment, fishing poles, baby toys and clothes etc. These are the same items you see being sold at garage sales just a short time later, for about 5% of the original purchase price.
Some people take this to mean that the only way to become financially free is to stop spending money. That's simply not true. The trick, however is to manage your spending by focusing on buying more assets (things that put money in your pocket) and less liabilities (things that take one out of your pocket).
This Begs The Question: "What is the smartest way to pay for my fun?" The first way is to make your fun tax deductible whenever possible.
Did you know that things like season tickets and tickets to concerts can be tax deductible? Same thing with country club memberships!
Now, here are some fun questions for you to get your mind thinking.
Are you trying to get into shape and wondering how to pay for it all? Answer: You can deduct the cost of a personal trainer and your corporate gym.
Or how about taking the family on that terrific vacation they so deserve: simply make it part of your annual meeting and let Uncle Sam underwrite the cost!
How about new furniture, ski equipment or golf clubs? Would you like to learn to cook, fly or meditate? Or, would you like to have your own swimming pool and health spa? No problem!
All of these things can be done with pre-tax dollars with a HUGE net savings to you.
The Average American Gives Up 42% to 55% in Taxes
In order to accelerate your movement along the wealth building curve, you absolutely MUST have your own business. I don't care if its real estate investing, a sales company or a service business. But you must own it yourself or with a partner. Why, because the tax laws are tilted in favor of people who are in business for themselves. Let's take a closer look. If you are not in business for yourself, you are earning your money as a W-2 employee. Unfortunately, this is the highest tax form of income that there is.
Keep it Simple and Strategic
There Are Several Keys To Handling Your Business Record Keeping... * The first is keeping complete and accurate records. * The second is separating the business from your personal finances. Let's start with this part first..
Mr. CPA, Can I Deduct a Pizza?
Recently, I stumbled across a concept that could change your financial life. You can call it a paradigm shift, or a new perspective, or just a different way to look at things. This single concept can save you tens of thousands of dollars in taxes each year. It's so powerful and yet completely under-utilized.
