You need to make more money. You go to work and trade your time for money. Yet there are only so many hours in the day. How are you supposed to get ahead?
“It only matters how much you keep, not what you make so therefore you must do everything you can legally, morally, and ethically to combat taxes and expenses of your business, or you will be giving away your business.”
- Courtney Epps Tax Strategist, CPA, Author
We spend more money per year on taxes than we do on food, on clothing, on housing and cars combined. It is our largest expense so the most important thing that you can do is to try to figure out how to save money and taxes.
There are two tax systems in this country.
W-2 employees have a tax system and there is a separate tax system that was created for business owners.
How can you get into the wealthy tax system which is the business owner tax system?
Why do you have to be in that tax system?
The average American makes $60,000 a year per household. You have about $14,000 in taxes that have to be paid. That means the take home for the average American household is $46,000 a year.
The problem with that is the cost of living in America is $53000 a year. So you’re literally going in debt $7,000 a year to work 40 hours a week, 50 weeks a year to have two weeks paid vacation as a W-2 employee.
Sound crazy? Want a solution?
Start a small business on the side.
The tax system for W-2 employees was created to take your wealth whereas the business owner tax category or tax system was created to give you wealth.
75% of American employment is created by small to medium size businesses. In order for business owners to create more employees they require tax deductions. Business owners create employees and the employees pay the taxes. That’s just the way it works.
With new tax laws, one may say that business owners are going to get more and more tax benefits while employees are going to get less and less. So somebody has to pay the taxes.
You can get out of that system.
Start a small business. You can still continue to be a W-2 employee and have a business on the side part-time that can help you get into that second category. Starting a small business will allow you the same benefits as a full-time business owner.
Having a small business/home-based business allows you to write off meals, vehicles and mileage driven, cell phone and internet expenses, a portion of my house is tax deductible because I operate my small business from my home and there are a number of additional deductions.
-Gather up what you are currently spending money on today as living expenses as a W-2 employee,
-Learn how to create a business, something that you are passionate about which will allow you to get into that second tax system,
-Take your living expenses and redirect those into business expenses to write them off on your taxes,
-Save tons of money in taxes years after year.
The average household income that has a home-based business on top of the existing income saves between $4,000 and $8,000 a year.
Start a side business.
This group builds a number of businesses from home. Check out what we have got going on to see if it is a fit.