April 15th has come and gone and tax season is over for another year. Were you happy with how much money you gave the government or would you like to decrease it? Now is the time to look at that and prepare for next year.
I don’t mind paying my taxes every year but I definitely don’t want to pay more than I have to. The best way to reduce your taxes is to be in business for yourself. If you have a regular job then you know that you pay taxes on the amount of money you make then you pay your expenses with what’s left. Did you know that businesses do it differently? They pay their expenses from the money they make then pay taxes on what’s left.
In case you didn’t get that, let’s say you are an employee who makes $3,000 each month. The government taxes you at 25%, so they take $750 and leave you $2,250 for the month out of which you make a $500 car payment. You have $1,750 left. Now let’s say you are a business that makes the same $3,000 each month. As a business, your $500 car payment is a business expense leaving you $2,500 in income. That amount is taxed at 15% (you dropped to a lower tax bracket) for $375 and leaves you $2,125 to get through the rest of the month. You have an extra $375 each month just because you are a business.
Starting a business sounds good now, doesn’t it? But what are you going to do? It has to be a legitimate business. How about network marketing? It is easy to start, has very low cost, and you can do it from home (which saves you even more money because your home office is a business expense). I have been with a wellness network marketing company for more than six years and could never go back to having a “real job”.
Saving me a fortune.
One more thing, I am not a financial advisor. I strongly encourage you to talk to one about your situation so that you know everything you need to know for your area and what you want to accomplish.