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What matters is -- what was your total tax liability for
year. That's "magic number" that should just make your blood boil and your heart beat so fast that you can hardly stand it.
Now that I've got you all "riled up" about paying so much tax, let's move on to Step #3.
STEP #3: Realize That Reducing Taxes Is The Easiest Path Possible To Creating Wealth
Consider this simple fact: Reducing your taxes by just $4,000 per year is easiest way possible to becoming a millionaire.
Let me elaborate.
Let's say you implement some new tax-saving strategies that reduce your taxes by $4,000 each year. Now, if you take that $4,000 per year in tax savings and invest it over next 30 years, assuming you earn 11.5% on your investment, you end up with $1,048,745.98 at end of 30 years!
And here's best part about this scenario: Where did you get $4,000/year to invest? Well, you got it from money that would have gone to Uncle Sam! It's money that you used to spend on taxes, part of 32% of your income that goes to taxes each year.
In effect, it's free money! It's money that was always there -- you just didn't realize it.
Is this a good deal or what? By simply reducing your taxes, government will finance your million-dollar retirement.
And let's say your tax situation is such that you save $2,000/year instead of $4,000/year. Same assumptions: you invest $2,000 each year at 11.5% for 30 years. End result: $524,372.99. Not too shabby, eh?
So all you have to do is come up with tax-saving strategies that will put $2,000 or $4,000 in your pocket each and every year. Which brings us to Step #4.
STEP #4: Get Hold Of The Tax-Saving Strategies That Will Make You A Millionaire!
You know, it doesn't really take much information to save a bundle in taxes. It is true: Just A Little Bit Of Tax Knowledge Can Save You Thousands Of Dollars Every Year!
Useful tax information is freely available. On Internet, at your local library, and through your local tax professional.
The question is: Are you willing to spend some time this year learning about effective tax strategies that can save you literally thousands of dollars?
Here's a simple goal to set for yourself: Over next 10 weeks, set aside just an hour a week to read up on tax-reduction strategies. That's all, just 10 hours.
Chances are you'll find 2 or 3 strategies that reduce your tax bill by $1,000 this year.
So you spend 10 hours and, in effect, pay yourself an extra $1,000 for your time. Not a bad hourly rate, eh?
Many times, that's all it takes to pay less tax.
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Wayne M. Davies is author of new eBook, "The Tax Reduction Toolkit: 29 Little-Known Legal Loopholes That Will Reduce Your Taxes By Thousands (For Small Business Owners and Self-Employed People Only!) Don't file another tax return until you visit: http://www.YouSaveOnTaxes.com oolkit.html
Wayne M. Davies is a Tax Professional serving small business and self-employed clients in Fort Wayne, Indiana. Wayne has been helping his clients reduce their taxes for the past 15 years. Wayne provides a complete line of accounting, payroll and tax preparation services for all business types: sole proprietorships, partnerships, corporations and LLC's. He is author of the new eBook, "The Tax Reduction Toolkit" available at http://www.YouSaveOnTaxes.com/toolkit.html.
