I was lucky enough to make my father a business mentor when I was young. When the time is up, I entered the business world. When he died when he was young, I could not rely on him. In financial education, the book of rich dad/poor father is my salvation grace. The few concepts I know are because of my father, but the advanced strategy and "how" really come from rich dad's book. This is a consultant for Rich Dad.
Why is this important to me?
I am not wasting your time to waste this time. My vision is to provide concise action steps that you can now take to enhance your financial life and career. If you want to continue to improve, you must be committed to continuing to learn. Through continuous learning in the right association, you will succeed in your career.
The cash flow quadrant truly summarizes the nature of financial success. If you focus on the left side of the quadrant, you can get a good income, but if you focus on the right side, then you can become rich. Robert Kiyosaki pointed out in Rich Dad / Poor Dad that the quadrant's left side makes money, pays taxes and then consumes. On the right side of the quadrant, people make money, spend money and pay taxes. This is a huge difference and can be the biggest successful leverage in your financial arsenal.
Tax-free wealth points to 24 tax strategies you can use on your way to tax-free wealth. For the sake of time, I will point out some comments about each one.
1. Rule #1 - This is your money, not the government. When it comes to taxes, people are often afraid. Remember that you are the one who creates value and makes the business work, smart and uses tax strategies to minimize taxes and maximize your investment. The key here is tax avoidance rather than tax evasion. Every concept in this book is completely legal and encouraged by the IRS.
2. Rule #2 - The tax code is designed to permanently reduce your taxes. All financial plans require a solid foundation. That's why you can't just focus on the rate of return. You can get huge returns, but if you lose it because of legal proceedings, or if 50% get taxes, you will fail in the long run. 99% of tax laws are written as incentives to encourage people to do business. The reason the government does this is because companies create jobs, and this is the biggest economic driver.
3. Rule #3 - The quickest way to deposit money into the pocket is to reduce taxes. Businesses need investment. The investment is a business expense as well as research and development, travel and other business related expenses. You can reasonably combine vacations and work and write them off as a business expense. If you travel and sell items, make a sales call at the resort. If you are a real estate investor, travel to a place where you may invest.
4. Rule #24 - Create a large amount of passive income by saving taxes. This is the most powerful wealth builder in the book, because you can improve compound interest, currency circulation speed and leverage. With these three cars and investment stacks, you will become rich. Our goal is to build your business and make money there and turn it into passive income, and then deposit the increased funds into cash flow investments, such as real estate. You want your money to work harder than you. You don't want to trade in dollars. Let me give you an example.
In our software company, there are two ways to build wealth through intellectual property and maintenance agreements. The two things used together will create a company that can be sold at 2-4 times the income. Now, in order to promote investment through leverage, I use the "unlimited banking concept" to provide funds to businesses through "my own bank". Now, the money that companies pay me is returned as investment income, which means lower taxes. The new revenue from the additional maintenance contract brings a new contract in the future. The next step is to use "good debt" to take advantage of our coverage and purchase more maintenance contract revenue through our software platform.
All in all, you make money in your business and keep it in passive income-generating assets through good leverage, currency circulation and compound interest.
Tax-free wealth is a good resource and I encourage you to read it. If you are immersed in these concepts, financial security and real wealth may belong to you.
I hope you find this summary summary useful. The key to any new idea is to incorporate it into everyday life until it becomes a habit. Habits are formed in as little as 21 days. One thing you can learn from this book is to save your financial education. If you take control of your education and schedule 30 minutes a day for this project, you will get results. You can't give your financial future to others. Take responsibility and good things will happen.
Orignal From: Book Excerpt: Tax Free Wealth - How to build a lot of wealth through Tom Wheelwright
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