1) You are a small business owner or self-employed person (including home-based businesses and part-time entrepreneurial activities).

2) You don't like to pay taxes. In fact, whenever you think about paying taxes, you get so mad you end up "all lathered up and nowhere to go."

Now, if paying taxes makes you so upset, what have you done about it lately?

Why was your tax bill so high last year?

You paid too much tax last year (and year before that, and year before that . . .) because you have probably been an innocent victim of many popular myths about taxes.

Here they are. Get rid of them or you'll be stuck paying too much tax forever!

Tax Myth #1: "I don't make enough money to worry about reducing my taxes."

Nothing could be further from truth. People at all levels of income can pay less tax.

Tax reduction strategies are not just for rich and famous. No matter how much money you make, you can pay less tax than you currently pay.

In fact, even if your business (or part-time entrepreneurial venture) has a loss, you can use that loss to offset other sources of income, such as wages from a "regular" job, your spouse's wages, investment income, rental income, other business income.

And if your business loss is so great that it more than offsets all your other income, you can take advantage of a special rule that lets you: a) Carry back that excess loss to 2 prior years, thereby entitling you to a refund of taxes you already paid for either (or both) of those 2 prior years; and/or b) Carry forward that excess loss to next 20 future years, so that any income you earn in future will be reduced by that excess loss.

Tax Myth #2: "Tax reduction strategies are too complicated for me to use."

Again, total and complete hogwash. There are plenty of ways for you, average American, to lower your taxes.

Tax reduction is not just for wealthy who pay high- priced attorneys to finagle their way out of paying taxes with sophisticated tax-avoidance schemes, like off-shore trusts and foreign bank accounts.

The average Small Business Owner has plenty of tax reduction strategies at his/her disposal. You just have to know what they are and how to use them.

Tax Myth #3: "I had my return prepared by an Accountant, so I know I paid right amount of taxes."

There are thousands of excellent, hard-working accountants doing a great job. And if you use a tax professional, maybe he/she has done everything possible to reduce your taxes to legal minimum.

Based on my own experience, however, I'm convinced that many taxpayers who use professional tax preparers are overpaying their taxes, sometimes by thousands of dollars each year!

Why is that? Well, there are many reasons. The most obvious one is this: Many professional tax preparers are just that: tax preparers and tax preparers only.

A good tax accountant may know how to prepare a tax return in his/her sleep. He knows forms backwards and forwards. He knows what numbers go on which form perfectly.

But that's it. That's all he/she knows.

A good tax preparer is not necessarily knowledgeable in tax reduction strategies. There's a big difference between a good tax preparer and a savvy tax reduction specialist.

Now before you start to think...."well I don't have any excess left...if I was earning more money....then I would have some free". Let me dispel this myth...and tell you that it is a known and excepted fact that amount of money that people earn has little if any bearing on whether or not they have an excess left to invest. The only way to create an excess it to spend less than you earn, instead of spending all that you earn.

Even doctors and lawyers, who earn well over $100,000.00 per year, often end up at retirement with little more Net Worth than factory or office workers.

Net Worth is calculated by deducting value of all liabilities or loans you have from income-producing assets owned to give you net value of your income-producing assets.

Why aren't high-income earners retiring wealthy? Why don't they end up with a greater Net Worth than someone on a low income? It is quite simple. Human nature seems to dictate that whatever anyone earns....they spend....some even spend more than they earn and charge it on their credit card.

The higher your income grows...the more you spend and only way to get out of this cycle is to realise that it is happening, and make a concerted effort to reverse this habit....and to begin reducing your expenditures so that you can free up money to invest.

The best way to do this, is to try 20/80 plan. This plan simply means that as soon as you receive your pay....you put aside 10% for God, 10% of it for investment....and then use other 80% to live off of. Put aside 20%, and then pay all bills and do grocery shopping....and then after that whatever is left over you can spend.

Most people do it wrong way around...they pay bills, do shopping and spend what is left over, never leaving any left to save or invest. By taking investment money out first you will alleviate temptation to spend it.

The road to wealth is not determined by how much you earn, but by how you utilise income you have and how much you save and invest.

You need to take control of your finances. One of best ways to start having more control over your money is to find out where it has all been going, and then amend your spending habits to allow you to live within 20/80 plan.

If you write down a list of your monthly net income, then in another column write down a list of essential items that you have to spend money on. You should be able to work out an average for telephone, gas, electricity, insurances and rates, from your previous bills. Work out an average of how much is spent on grocery shopping and petrol. If there are any other necessary utilities include them as well. Then deduct second column from first - and this will give you maximum potential savings for each month.

It can be quite startling how high this figure can be and make you wonder where all extra money went.

Another good learning experience is to simply write down for a fortnight every dollar spent and write next to it what it was for. You will soon find that there are a lot of unnecessary expenses, often caused by impulse buying, where you have spent money on items that you neither needed or really wanted, and could easily have gone without.

When you can begin to recognise these areas, and start to consider whether or not you are spending your money wisely, before you hand it over, then you will be beginning to take control over your money and are well on way to embarking on your investment journey, which will enable you to have a financially secure future for you and your children.

Visit my website at To find money to invest for your future, you need to make sure that your outgoing expenses are less than income that you are receiving. You need to develop an excess that you can have free to invest.

Now before you start to think...."well I don't have any excess left...if I was earning more money....then I would have some free". Let me dispel this myth...and tell you that it is a known and excepted fact that amount of money that people earn has little if any bearing on whether or not they have an excess left to invest. The only way to create an excess it to spend less than you earn, instead of spending all that you earn.

Even doctors and lawyers, who earn well over $100,000.00 per year, often end up at retirement with little more Net Worth than factory or office workers.

Net Worth is calculated by deducting value of all liabilities or loans you have from income-producing assets owned to give you net value of your income-producing assets.

Why aren't high-income earners retiring wealthy? Why don't they end up with a greater Net Worth than someone on a low income? It is quite simple. Human nature seems to dictate that whatever anyone earns....they spend....some even spend more than they earn and charge it on their credit card.

The higher your income grows...the more you spend and only way to get out of this cycle is to realise that it is happening, and make a concerted effort to reverse this habit....and to begin reducing your expenditures so that you can free up money to invest.

The best way to do this, is to try 20/80 plan. This plan simply means that as soon as you receive your pay....you put aside 10% for God, 10% of it for investment....and then use other 80% to live off of. Put aside 20%, and then pay all bills and do grocery shopping....and then after that whatever is left over you can spend.