Tuesday, February 19, 2013

How to Get Rich - Pay Your Governments Less

Do you like paying taxes to your Government ?

Do you think they spend your tax dollars wisely ?

If you're like most, your answers will be a resounding NO !

Waste of Wealth 

Any tax that you end up paying to your various levels of Government is technically a waste of good money and also a waste of every taxpayers' hard earned wealth. The reason I say this is that most governments that I have had dealings with are extremely inefficient and in many cases should be charged with negligence or even downright fraud. However, the way our legal systems are designed, it is very difficult to hold politicians accountable to the people they are supposed to represent.

Please note that this is purely my opinion and there may be good responsible governments somewhere. I have merely not encountered any.

Reduce Your Tax Waste  

Now that you understand my opinion on most governments, my recommendation is to do whatever you can legally to pay as little tax as possible. The wealthy spend a lot of time and effort in this task mainly because it can make a huge difference on their future wealth. The more wealth you create, the more your government will want to share in your success.

Think of it this way. For every dollar you can save in taxes, you will have another dollar to invest in your future. These amounts when compounded over many years can add up to a substantial portion of your overall wealth. Therefore, the reduction of tax payable should be of the highest priority in any planning and investing that you do.

Help Is Good

This is an area where it is good to hire an expert to help you in your tax reduction planning. The average individual will not be able to make sense of the complex wordings of most government documents. They seem to be designed for the legal professional without consideration of the average individual who will most benefit from their understanding.

Paying for good tax planning advise is money well spent. Over the years it will save you much more in tax savings than the initial costs you will invest. Yes, Invest. Think of this expense as an investment in your future wealth.

As tax laws are different in every jurisdiction and are also constantly being updated, it is impossible for me to give you more specific advise about reducing your individual tax bill. You will have to find a qualified individual in your jurisdiction and work with them in this area. Make sure to shop around and always ask for references from satisfied clients. As in most things, there are good ones and some not so good ones.

By finding ways to pay your government less, you will be growing your wealth at a much faster pace. Be sure to invest your tax savings in your future and not spend it. This is the best way to ensure the cost of good planning will benefit you the most.

As always, I welcome your comments and suggestions for future topics.

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