How many women believe in spending money on an expense because the expense is tax deductible? Many women view this technique as a savvy approach to investing.
For those who like to spend money solely because the expense is tax deductible, then consider the following deal. You give someone a dollar, and they give you 30 cents back. Does that sound like a good deal? Yet, this is exactly what happens when someone spends money for the sole purpose of getting a tax refund. In fact, many people justify spending additional money on a home mortgage versus what they are currently spending for rent, because they can write off the interest. Although there is nothing wrong with buying a house to help build wealth or satisfy personal goals, most folks actually stifle their financial journey.
This is what separates the financially literate from the financially challenged. The financially literate do not spend money for the sole purpose of getting a tax refund. Instead, they learn ways to deduct expenses that they already have anyway through a legitimate business. Or they choose to invest in their 401k, or in an IRA to realize tax benefits.
"I started my first business eight years ago," says Aneshia Y. Smith, a published author and founder of ITATI. "In essence, I was able to reduce my yearly tax bill by employing a simple financial model used by business owners." Business owners take in income, incur business expenses, which they deduct, and pay taxes on the rest. Employees on the other hand use another financial model. They take in income, pay taxes, and use the rest to pay for their expenses.
Consider a business owner and an employee who each make $100,000 per year. Assume they are both taxed at the same rate of 30%. The business owner spends $40,000 in business expenses. The tax bill of the business owner would be substantially different. The business owner pays only $18,000 in taxes versus the employee who pays $30,000 in taxes.
The business owner has a $12,000 advantage. That is $1000 per month. "For those who are wondering where to get the extra money to start building wealth, this could be it. You have probably already got it, and it is in the form of your existing tax bill. Find a way to reduce your taxes," says Smith.
Smith, who has appeared on Lifetime Television's The Balancing Act, is also a lead stock market coach at ITATI. "Establishing a self-directed IRA has been a critical step on my financial freedom path because it has given me the freedom to utilize certain techniques to grow my account at a rate much higher than the annual S&P as well as retain the tax benefits for my profits."
For additional information on this subject matter, contact Aneshia Y. Smith, founder of and lead coach at ITATI, at the phone number or e-mail address below or log on to www.ITATIStocks.com.
About ITATI:
ITATI is an international stock market training organization providing coaching exclusively to ladies who want to take control of their financial future. ITATI was created based on enlightened principles with the intention of empowering smart investors to make wise financial choices. Its mission focuses on educating women, and providing a safe community for women to express their thoughts, views, and concerns on financial matters. It is home to the ONLY Stock Market Retreat Exclusively for Women.
Contact: Aneshia Y. Smith ITATI... Empowering Ladies in the Stock Market Is That All There Is?? 404-590-7837 (Atlanta) Aneshia@ITATIStocks.com
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