Summary: Money seems to grow on trees for a very select number of people. As a result, the gap between the rich and everybody else is getting bigger by the day. You probably know the famous interview in which Warren Buffett explains how he pays fewer taxes than his secretary. It sounds outrageous, but he’s right, though. Millionaire Mike, who makes $5,000,000 a year will pay only 18% on his income tax while Average Joe, who makes $50,000 a year, will pay a tax rate of 20%. How is it possible that millionaires pay less in taxes than their secretaries or janitors? It’s because the tax laws in the United States are designed to benefit investors. That said, if you plan on getting rich, a regular job won’t suffice. But starting a business on the side might get you there. Start Your Side Business It’s said that the most important trait of a successful entrepreneur is his or her ability to see an opportunity and imagine something where others haven’t. But, I’ve seen many stuck at the starting line preoccupied with every single detail. But, here’s the thing. Your business idea doesn’t have to be fancy or complicated. Just think about the coffee cup sleeve – there’s nothing ingenious about a piece of carton that protects the drinker’s hands from hot coffee. But, it solved a problem most people were having. If you still have trouble finding a good business idea, focus on what you know already. For instance, if you are a salesman, you could start a consulting business and teach others how to master the art of selling. At this stage in life, with you so young, the main purpose of your business is to decrease your taxable income. Making a profit is nice, but not the end of the world. Amazon didn’t make a profit for nearly six years. The main point of your business at this stage is to help you pay lower taxes, and take that extra money to re-invest into your business. Learn How to Convert Personal Expenses to Business Expenses As difficult as it may seem, having your own business will bring you some benefits. For instance, you can convert some of your personal expenses to business expenses, such as: Home office Travel Mileage or car Transportation Hotels You can write off these expenses by linking them to your business. You don’t have to be a master accountant to do it. It’s quite simple. Here’s an example. A good friend of mine runs a nongovernmental organization. He’s a master when it comes to writing off expenses. Almost everything he does is somehow linked to his business. For instance, if he plans a vacation to the Philippines, he’ll turn it into a business trip. Sure, he would explore the islands, surf, and relax but, at the same time, he would also schedule meetings with possible partners and investors, or simply look for business opportunities while exploring the country. So, the secret is to add a business spin to what you’re doing, just as my friend does. Not only will you have fun, but you will have fun for free and expand your business, at the same time. There’s no law that says your one employee corporation can’t hold board meetings in Honolulu, Hawaii or Tokyo, Japan. Website: http://ianbalina.com Instagram: https://www.instagram.com/diaryofamad... Snapchat: https://www.snapchat.com/add/diaryofa... Facebook: https://www.facebook.com/ianbalina/ Twitter: https://twitter.com/diaryofamademan
