This year has proven the importance in finding ways to get more for our
money. We often talk about getting $1.25 for every dollar on this site. The poor economy has given us some very good purchasing
opportunities for larger items like cars and houses, but day to day things
like food, gas, and utilities have gone up in price. Every time something
goes up in price we are at risk of having our current standard of living
nickel and dimed away. The fact that the cost of everyday living is
climbing while economic conditions are making it harder to earn more means
we must get more creative with the money we have to maintain the living
standards we enjoy.We have talked about many ways to ensure you are getting more value for every one of your dollars. For example, negotiating and asking for better deals is always necessary. The worst that can happen is a seller says no to an offer you make. The best that can happen is that you will be offered a deal even better than you expected. Also, make sure you are using a budget and managing your money so that you are ready to act when a special money saving deal comes up. Always do more research prior to making a purchase. Never assume that you know where to find the best deal. These days there is usually someone out there that desperately needs the sale and can do better for you. One area of potential savings that so many people overlook is the amount of tax they pay. Perhaps they feel there is nothing you can do about taxes but that is far from true. Small business is the answer. I stress all the time that arranging your lifestyle around your own small business is like giving yourself 5 years of pay increases right now. When you use legitimate small business tax deductions properly you can dramatically reduce or eliminate your tax liability. That means you will be putting that money back into your pocket. If you are in the 15% tax bracket and would normally get a 2-4% pay increase at work each year, it would be like getting all those increases up front this year. People who have an employer and operate even a part time hobby based business have a tremendous potential to reduce the amount of tax they pay. Think about all the taxes you pay. State, municipality, school, sales tax on just about anything you do or buy, entertainment, parking, commuter, and federal taxes just to name a few! I am sure you would be surprised to find out how much tax you pay in the course of one year if you added it all up. Yes, it is our responsibility as citizens to pay tax to support the public services we use. However, if you could legally reduce your tax liability in half think about what that extra money would mean to your standard of living. Creating a small business structure is the first step in making that happen. |