Raise your Financial Intelligence 20% in one month exercising just 5 minutes a day

Beneficial for High Income Earners, Entrepreneurs, All Businesses, Investors in the Share Market and Real Estate Buyers.

No heavy lifting involved. All you need do is think

There are everyday decisions you make or don't make which impoverish your mental capacity to succeed financially. For starters - if you leave Tax decisions to be handled by your Accountant it is tantamount to choosing to pull an oar on the slave ship in preference to being captain of your own destiny.

Obviously before you can gain confidence in financial decision making you first need to learn how to swim. If you are afraid of the water then you need to immerse yourself. Spend 60 seconds right now to Google "Income Tax Rates". Spend another minute looking at what the rates are. Start with your own current income. Then look at what it is for the income you might like to be earning and then how much tax would you pay if you might earn an additional $1million? There are no decisions to be made in that exercise - just familiarize yourself with the bite out of your pocket (or ass as the case may be).

Now start thinking about two things. Can you think about 2 things at the same time?

1) How much are you seriously intending to earn over the next 3 years? Look at how much you will give up in tax to calculate approximately what the after tax number of dollars that results in.

2) Are you ready to increase the number of dollars staying in your pocket by $500,000 to $1million - doing less work than you probably are doing these days?

Attitude has a larger bearing on your financial success than real brain power. You do not need to be Einstein to realize the simple truth that the numbers show. Say you earn $1million and lose $400,000 in tax. (It can even be worse depending on how you structure your business and take home.) When you settle for $600,000 think of the $400,000 you throw away. That $400,000 is NOT the IRS's money unless you just decide to forfeit it. It is money you actually earned and belongs to no-one other than yourself unless you just give it up.

Many small businesses struggle to make money - chasing an extra sales dollar where-ever they can. Little regard is given to the fact that when they capture an extra dollar of revenue it melts in their hand. First there are costs incurred in producing extra sales and then out of whatever is left after costs there is a further leakage to tax.

It is fairly difficult for most businesses and wage earners to increase after tax results by even one dollar. However, look at the bird in your hand. In the example there is potentially $400,000 of after tax earnings you could bank if you just closed your hand on the money already earned and sitting there before you. That equates to a 66.6% improvement in net earnings. How would you feel doing that each year?

Think for a moment how difficult it was to produce the after tax $600,000 (or what you are retaining at present as after tax earnings) and consider the fact that if you hare off chasing extra sales - assuming zero production and marketing costs - you would need to bring in $666,666 more in sales in order to end up netting an extra $400,000 after tax. Now what should be easier - to increase your revenue by two thirds without increasing costs - or to manage the money already earned sitting in front of you?

You might care to ask your accountant about that - as in most instances they are taking a lend of you. Their cost to your business is not what their fees are but rather how much of your profits they have you give up in tax. Some people say their accountant is very cheap - as they do not charge them hefty fee. But their cost is enormous. By all means get a cheap accountant - and slash your retirement money severely, retard your business growth and work longer hours compensating for what you are losing.

I remember a pie shop with a sign in the window which read: if you want nice clean oats pay a fair price - but if you are prepared to settle for oats which have already gone through the horse you can get them a lot cheaper.

When it comes to tax strategies most accountants focus on expenses as a way of generating tax deductions. Somehow with their distorted logic they seem to think it is prudent money management to spend a dollar in order to save 40 cents? In my book that is insane - as there is a double loss. First off you lose the $1 and then you lose what that $1 could have produced if it had not been just thrown away.

Instead of saving 40 cents by giving up a dollar would it not be better to at least hang on to 60 cents by paying the tax? Even better though are the opportunities for reducing, deferring or eliminating tax entirely for less than 20% or even 10% depending on the amount of money involved - yes or no ?

What if you managed to save half the $400,000 - what could you do with an extra $200,000 after tax? There are infinite possibilities - starting with utilizing it to save another $200,000 the following year. In which case that would yield a 100% after tax return. What are your investments producing for you at present - or at least in the next year or two? Can you get a better return - with No Investment Risk and No Market Risk? The money will just be sitting in your bank account - available to repeat the process for as long as you desire.

If your business takes a nose dive in the next year is it beneficial to have some spare change laying around or would you prefer to sacrifice having a life raft by giving it up to the taxman this year? Each year you can ask yourself the same question and make a prudent decision.

Now I know there are some of you who think your accountant can walk on whatever and the sun shines out of their proverbial. If they are not Mandrake perhaps you might need a hand managing your financial affairs and tax? If so help is just a PM a way. Connect and then message me with the magic word "Raise".

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