Debt Payoff & Wealth Building

Learn how you can make debt work for you so that you can build wealth…

 

In this day and age it is important that you turn a new page and not live your life with rage.

 

Now is the time that you put a debt payoff plan in place so that you can achieve at all ages, increase your wages and turn new pages.

 

Even though you may now have credit card debt, you can “flip the script”  and pay off your debt and use those payments to build wealth so that you and your family benefit (not creditor’s) for the remainder of your life and beyond.

 

You can leave a legacy for future generations and live daily with confidence because you decided to seriously confront your finances and you left all excuses behind.

 

In this discussion TheWealthIncreaser.com will show you how you can turn a negative situation such as debt payoff into a positive situation where you have over a million dollars in your account.  Keep in mind that it won’t happen overnight, however you can put yourself and your family in position to make it happen in a real way.

 

Analyze Your Cash Flow

You must know your monthly cash flow position prior to starting on your debt payoff plan if you desire to pay your debt down in the most efficient and effective manner possible.

 

You must create a personal cash flow statement (budget) at a minimum and by doing so you will open up the possibility of paying off your debt in a more timely manner–if your discretionary income is at an acceptable level.

 

If your income is not at an acceptable level you may need to get more income or cut your expenses–or do a combination of the two if you desire to make your debt pay down or debt pay off dream come true.

 

Increase your Income

You must increase your income if you are now falling short of paying off your debt in a timely manner.  You may have to get a second job temporarily to help pay off or pay down your debt in a timely manner or come up with other creative ways to increase your discretionary income.

 

In rare cases bankruptcy should be given serious consideration if your debt level is at an insurmountable level where the payoff will take greater than 5 years and you lack the means to pay off the debt.

 

This approach should normally be considered as a last resort after you have exhausted all other means as your credit will be severely affected for years–however you can make an effective recovery after bankruptcy if you are committed and you have an effective action plan.

 

You also want to use this approach (if necessary) “prior to” depleting your retirement and other financial accounts, therefore it is important that you get professional advice in a timely manner if you are currently in a difficult or distressed financial position.

 

Cut Your Expenses

In some cases you may be able to cut your monthly expenses by spending less, getting on budget or levelized billing for your utilities and looking at your variable expenses to find areas that you may be overspending in such as entertainment, clothing and the like.

 

You must look at ways that you can reduce your bills or cut expenses and the money saving can be used to reduce debt and/or achieve other goals that you and your family may have.

 

Pay Your Credit Card Debt Off in an Efficient Manner

You must come up with a debt payoff plan that is reasonable based on your lifestyle, realistic based on your ability to pay and has a definite deadline for achievement that is also reasonable.

 

You can choose from a number of payoff options such as smallest balance to largest balance (snowball approach) or highest interest rate to lowest interest rate (avalanche approach) and many other approaches that fall in between.  The real key is do you have the motivation at a high level and  are you determined to pay off or pay down your debt so that you can do xyz?

 

Why do you want to pay off this debt that you have?  Is the “why” enough of a motivating factor to keep you “locked-in” on your payoff schedule so that you can do what you desire in your future–including saving more aggressively for your retirement years?

 

Use Your Payments that You Were Using for Debt Payoff (along with other income) to Build Wealth

Once you pay off or pay down your debt you can use those payments that you were using to pay off your debt to build long-term wealth.

 

You can use the same discipline that you have become accustomed to with your debt payoff efforts to invest monthly for a consistent period of time whether it be 10, 20 or 30 years–or any time period that you desire that will take you toward the goals and objectives that you desire or need to achieve.

 

You can also use future salary or wage increases and other financial windfalls that may come your way to help build wealth more efficiently during your lifetime.

 

Conclusion

By paying off or paying down your debt at this time you can start on a path to enjoying life in the manner that it should be enjoyed.  You will put yourself in position after the debt payoff to use the funds to pursue wealth and help ensure a more prosperous retirement period once you age.

 

In a similar manner as those who promote “buy 20 year term life insurance and invest the difference” that you would be paying for whole life insurance over that 20 year period to build your future nest egg–so too can you use that same general concept when it comes to paying off your debt and building wealth.

 

For example, if you were accelerating your debt payoff  ( credit card debt of $12,400) by increasing the amount from $300 per month that you would be paying for 10 plus years before debt payoff to $600 per month for 25 months or just over 2 years–you could continue to use that $600 per month by investing consistently for 30 years and at a return of 10% per year you could have well over a million dollars in a relatively painless way.

 

Keep in mind that whether you buy term and invest the difference or pay off your debt and invest the “payoff monthly payment that you were making” to invest for a designated period–the real key is that you must have the right mental faculties or mindset to stay focused and make it happen in real time.

 

You must realize that many start on a positive note by buying term and investing the difference–however, many also fail to go the distance–they stop or cut back on their investing activity and end up falling short of what they needed or desired to achieve–such as reaching their retirement number, saving for their dream home, investing for the educational needs of their children and many other scenarios that are played out in real time based on adversity that they face at the various stages in their life.

 

Don’t let that be you!

 

And it won’t be you, because you are aware of the need to create  an emergency fund that is properly funded and you know why it is critical to do so at the earliest time possible because it helps you meet life’s emergencies without having to interrupt your long-term investing activity.

 

If you are now serious about eliminating or reducing your debt at this time you must sincerely look within and determine right now that you are willing to put forth a serious effort to pay down or pay off your debt consistently in a way that will lead to you reaching the goals that you desire or need to achieve.

 

You must always realize that while you are here on planet earth life happenings will always occur that can give your mind an easy way out as to why you “can’t” do what you need to do!  In most cases they are nothing but excuses and your mind will accept those excuses if you allow your mind to do so!

 

The good news is that you can decide to  to fight and not allow excuses or any other negative occurrence take your mind or mental thought process in the wrong direction during your lifetime.

 

Will you be in the group that allows adversity and the happenings of life to hold you back–or are you willing to move forward with an unstoppable force on the inside that says by your actions–I will be successful and I will achieve at the level that I  desire?

 

Because you control your mind and the outcomes that are in your future–the goals that you are pursuing cannot and won’t be denied because you have put together a serious debt reduction action plan and you know that you have the commitment level that is needed at this time–based upon looking deep within and sincerely accepting the challenge.

 

You are fully aware that by achieving the goals that you desire you can create a more rewarding future for yourself and your family while on earth (and even when you transition your heirs can still benefit from the actions that you took) and bring  the joy and happiness to your heart and mind that you need–and deserve.

 

Use your “new attitude” about your future success to pay down or pay off your debt and achieve any other goal that you may desire–starting today!

 

In closing, it is important that you realize that many of our past clients were unaware that they would be paying thousands upon thousands of dollars in interest for “many more years” than they anticipated if they continued on their “current” debt payoff trajectory.

 

By adding an additional amount to their monthly payment their debt payoff or debt pay down was accelerated to just a few years–as opposed to a 10 to 20 year payoff period.

 

If you are now fortunate to have discretionary income on a monthly basis you can use some or all of your discretionary income to pay down or pay off your debt and achieve other goals that you may have.

 

If you unfortunately don’t have discretionary income at this time you may need to:

 

1) increase your income on a monthly basis

2) cut your expenses on a monthly basis

3) do a combination of the two

 

You want to position your mind for continuous success and you do so by–seeing a realistic path toward making your dreams come true–and that is something that you now know how to do!

 

All the best toward your debt pay down and debt pay off success as you build your retirement nest and achieve other goals that will allow you to live at your absolute best…

 

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Confidence & Wealth Building

Learn why you must have confidence in what will happen in your future as you build wealth…

 

As we move along in this new decade many are attempting to make a serious turn in the direction in their life and achieve lasting success in the management of their credit and finances.

 

Speaking of turns, I had the unexpected occurrence of meeting one of my favorite athletes (Lee Haney earlier this month on January 18th) after I forgot some grocery and had to return to the health food store.

 

As you turn in the direction of making your life more prosperous you must realize that a  key component to achieving the success that you desire is how you look at your past, present and future.  And it is more important than ever that you have confidence in your future regardless of the political and economic climate that you find yourself in.

 

In this discussion TheWealthIncreaser.com will discuss the importance of why you must have confidence in your future and will detail ways that you can take steps to bring the confidence that you now have or will soon gain–to build wealth now –and in the coming years.

 

It is important that you see success in all areas of your life and particularly in the area of your credit and finances!

 

You must want (in your heart and mind) to see how you can use personal financial statements to your advantage, know how you can master your credit effectively and know how you can address all of the important areas of your finances in a way that will take you to where you want—or need to be.

 

How you can use personal financial statements to your advantage…

 

It is beneficial for you to have the knowledge of how you can use personal financial statements for the greater benefit of yourself and your family.  By knowing your monthly income and the monthly outflow of cash (cash flow) that you utilize to pay your monthly expenses you can get a clearer picture of how you manage your finances now–and how you can make improvements.

 

In addition, you want to see how your yearly income and yearly outflow of cash that you utilize to pay your yearly expenses affect your household.

 

A personal income statement will help you do just that and will also provide you an even clearer picture of your overall finances and where you can possibly go in your future.

 

In addition you want to take a serious look at your assets and your liabilities so that you can determine your net worth and a balance sheet will assist you in this process.

 

Your net worth is a key metric that can be used at the various stages of your life to help you see how you are doing financially!

 

By doing the above you are showing a real commitment to improve your financial condition and the success or goals that you desire to occur will be made more realistic for you if you utilize the knowledge gained from those statements in the right way.

 

You will put yourself in position to operate daily with more confidence and optimism and a feeling of joy can live inside of your heart and mind on a continuous basis.

 

How you can master your credit effectively…

 

It is important that you have working knowledge of how you manage your credit and how you can manage your credit more effectively.  You must have a “meaningful understanding” of how credit works and you must have working knowledge of the “5 credit factors” so that you can apply that knowledge throughout your lifetime.

 

By keeping your “payment history positive” and your “utilization rate” or the amount of your available credit that you use below 15% you will be on a good path toward credit management.

 

You must also manage your credit effectively “over time” and you must have several “types” of credit (your credit mix) and seek new credit sparingly to keep your “hard inquiries” at an acceptable level if you desire to maximize your credit and credit score throughout your lifetime or during the period in your life that you desire to utilize credit.

 

How you can address all of the important areas of your finances…

 

It is important that you know what you must address financially and you must use that knowledge to actually manage the areas of your finances in a comprehensive manner and in a manner that is more beneficial for you and your family.

 

You must insure that your insurance coverage (no pun intended) in all areas that can benefit you has at least been looked at–and where appropriate added to your insurance profile.  You must invest both inside and outside of your retirement accounts so that you can achieve the goals that you desire.

 

You must minimize the taxes that you pay in as effective a legal manner as possible.  You must establish an emergency fund that is appropriate for you and your family.

 

You must establish an education plan for your children if necessary at the earliest time possible, and finally you must complete your estate plan/will(s) in a timely manner as well.

 

Conclusion

 

Your determination to look at your finances in a proactive manner can lead to you gaining “added confidence” in the way that you look at and respond to financial occurrences at this time and throughout your lifetime.  There is no reason to fear your financial future or let distractions in your life rule the day.

 

Now is the time that you use your “new found or newly created confidence” as it relates to your finances to worry less, let go of anxiety, leave frustration in your past, put forth more effort, and leave all excuses behind.

 

By using personal financial statements, mastering your credit and improving your finances in all areas you can confidently look at your future and pursue the success that you desire in a more definite way.  You can then pursue other goals or your life purpose in a manner that is empowering and can really take you to where you need or desire to be.

                    

It is important that you understand what is best for your long-term financial health and you must organize your thoughts with awareness of where you want to go and you must have a steady confidence as you move toward where you want to go!

 

It is you who must organize your thoughts and find the best route to long-term success based on your goals and dreams!

 

Even if you are on a prosperous path toward financial success you must still pursue your goals with passion and always know that adversity or unwanted happenings will occur during your life.

 

However, it is you who must find a way (possibly with the assistance of others) to come through your adversity and recognize that you are now stronger and you can achieve more.

 

You must realize that adversity has occurred and you can grow from it if you believe you can and you take steps to make it happen.

 

You must gain or regain your confidence and move forward!

 

You must be “proactive” (notice the emphasis on proactive), formulate and execute your goals in a manner where you have the right frame of mind (cultivate success qualities to a higher level in your life) as you build wealth.

 

All the best toward your increased confidence, starting today…

 

 

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Random Thoughts & Wealth Building

Learn about “10 highly effective success principles” that the creator of TheWealthIncreaser.com believes can lead to untold financial success for you and your family…

 

It is amazing to believe that the blogging journey for the creator of TheWealthIncreaser.com began exactly 10 years ago (January 3rd, 2010) with the decision to create a dynamic website (the-best-atlanta-real-estate-advice.com) powered by SBI.

 

In spite of not having written an article of over 500 words in over 20 years the inspiration and guidance was provided by the creator of this great universe for the creator of TheWealthIncreaser.com to dream big and create credit, finance and real estate articles for visitors so that they could achieve financially in a comprehensive manner—and in a manner that would lead to continuous success throughout their lifetime.

 

Although a daunting challenge—and task—the creator of TheWealthIncreaser.com has successfully done just that over the past ten years.

 

By dreaming big—and knowing deep inside that success would be the outcome the guidance was provided—and visitors worldwide now have free access to over 500 pages of content on three of the most empowering wealth building sites that can be found in the internet universe:

 

the-best-atlanta-real-estate-advice.com

realty-1-strategic-advisors.com, and

TheWealthIncreaser.com

 

The three sites have brought forth a new version of financial planning that turn the odds in your favor (not creditors) and more importantly puts you in control of your finances and wealth building activity in a way that could lead to greater success for you and your family throughout your lifetime.

 

With this being the ten year anniversary of “when it all started” the creator of TheWealthIncreaser.com decided that an appropriate topic that could lead to lasting success was to outline “10 success principles or random thoughts that came to mind at this time” that can help you achieve your financial (and life) goals at a higher level in this decade—and throughout your lifetime—while you are here on planet earth.

 

  • Know what to avoid

It is important that you manage your finances from a standpoint of understanding what you need to avoid.

 

By frequenting this and other wealth building sites you are showing a real commitment for successful outcomes to happen in your future.

 

  • Know what to confront

In a similar manner as knowing what you must avoid in order to achieve optimally—you must also know what you need to confront.

 

You must not only have that knowledge—you must actually confront your current cash flow position, your credit understanding and your financial understanding in all areas—if you desire to achieve optimally throughout your lifetime.

 

  • Have a big imagination

Nothing can hold you back moreso than your inability to dream big—and pursue those big dreams!

 

You must formulate significant goals and have every intention within your mind of achieving those goals.

 

  • Know your thought process

How do you approach your finances and financial future? Do you even have an approach?

 

By thinking about your future and what lies ahead you put your heart and mind in position to receive the vibration and rhythms of life that can lead to “life happenings” going your way.

 

  • Begin with the end in mind

You must begin with the end in mind whether it is a car purchase, home purchase, educational goals, retirement goals or any other goal.

 

By doing so you put yourself and your family in a more favorable position for success.

 

Will I sell or trade-in my vehicle in 3 years?

 

Will I stay in my home for 20 years and then move to my dream location?

 

Will I begin saving now to help fund my child’s educational needs 15 years from now?

 

Will I allocate my risk profile with my investments in an appropriate manner?  Will I sell stock X that I bought at $5 per share–all or in part–when it hits $20 a share?

 

Will I choose mutual funds or will I use a stock portfolio to help reach the goals that I desire–or will I use a combination of investment vehicles to reach the goals that I desire?

 

Will I save appropriately so that I can reach my “retirement number” so that I can do what I desire in my retirement years?

 

The above—and other probing questions based on the goals that you are pursuing are what you must ask on the front end—so that you won’t suffer on the back end!

 

  • Keep your monthly bills under 10 so you can win

You must make it a point to manage your bills monthly (mortgage, auto loan, gas, electric, water, garbage, phone, cable,  and credit cards) at an optimal or highly effective level.

 

Keep in mind that if you are at nine bills or twelve bills you are still ok–the goal is 10 or so per month–to add clarity to your mind and thought process so that you reduce stress on a monthly basis.

 

You must have clarity and focus on a daily basis and not allow clutter to cloud your mind!

 

By keeping the number of bills that you pay from your checking account on a monthly basis under 10—you set your living circumstances up so that you can win.

 

This success principle does not mean you can’t have other accounts to reach your ultimate goals such as an account for entertainment and living outside of your “fixed monthly expenses” or investment accounts and other accounts that are designed to help you reach your goals.

 

  • Know your money management personality

By knowing how you manage your finances on a daily, weekly, monthly and yearly basis—you put yourself far ahead of those in the general population who go about their daily activities in a manner where they don’t have a clue.

 

Are you a highly effective money manager—or do you need to improve?

 

There is no need to panic as you can achieve lasting success regardless of your money management style.

 

  • Know where you are at in your life stage

Whether you are just entering the work force, just graduating from college—or you have been working for years—it is important that you understand the stage in life that you are at.

 

By doing so you add clarity to how you see your future and you make reaching many of your goals more likely to occur.

 

  • Always establish a properly funded emergency fund

It is imperative that you establish an emergency fund at the earliest time possible and properly fund that emergency fund.

 

By doing so you help reduce the future risks that you will face in your life and success will be more likely to occur.

 

  • Have faith that what you are pursuing will truly occur

You must know and take action consistently in a manner that says to the universe—I will succeed!

 

You must sincerely pursue the goals that you desire so that you can give your mind added incentive—to reach higher!

 

You must believe and know that the results that you are pursuing—will show!

 

Conclusion

 

It is important that you use your experience, expertise and you exercise the use of your mind in a spirit of excellence if you desire to achieve more during your lifetime.

 

And just as “that process” led to the creation of three leading financial blogs, numerous books and e-books—and increased profitability for Realty 1 Strategic Advisors and TFA Financial Planning—so too can you use that process to make big things happen in your life.

 

Even though the year of 2010 started on an upbeat note with the creation of the-best-atlanta-real-estate-advice.com the creator of TheWealthIncreaser.com  would face great adversity in the spring when the mentor of the  creator of TheWealthIncreaser.com transitioned and even greater adversity when the younger brother who looks just like the creator of TheWealthIncreaser.com unexpectedly transitioned in the fall of 2010.

 

Those unfortunate events tested the faith of the creator of TheWealthIncreaser.com, however by responding positively to adversity in the same manner as he had urged early visitors to the site to do–the continuous development of a number of sites took on a new meaning and increased urgency–and brought forth over 500 pages of web content that you can now benefit from at this time.

 

Always realize that the success that you desire often begins by looking within and giving serious thought to what you desire most in your future.  You must leave “all” excuses or reasons why you can’t reach your destiny behind you so that you can take the necessary steps toward making your dreams come true.

 

You must open your mind up to the inspiration (and always be open to receiving inspiration when it is in your best interest to do so) that will follow and you must have a strong desire on the inside of you—to make your dreams come true.

 

That initial thought at a deep level can lead you on a journey toward making the right moves at the right time—and more effectively guide you toward your destiny!

 

In the end (or maybe the beginning depending on where you are now at) it is your timing, your willingness to move to action—your preparation, your focus and an unstoppable belief on the inside of you—that will guide you in the direction of doing what you definitely need to do—to make your dreams come true.

 

Use what you were enshrined with at birth (a spirit of excellence) while you are here on planet earth!

 

It is of the opinion of the creator of TheWealthIncreaser.com that this site will act as a springboard to success and will help you achieve many of your financial goals.

 

However, you must realize that the opinion of the creator of TheWealthIncreaser.com is biased in favor of TheWealthIncreaser.com.

 

You must determine for yourself whether TheWealthIncreaser.com is the site for you—or whether there is another site in the internet universe that will work better—as far as making your dreams come true.

 

Always remember that the burning desire that you have on the inside at this time (or at some time in your future) to do “something big” may be the voice of God giving you the “ignition” that you need to help direct your steps and give you added strength to bring something new and powerful into this world–at a time and in a manner that is uniquely designed for you!

 

All the best to your continued success in the next ten years in your life—and beyond…

 

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New Year–New You

Learn how you can manage your finances more effectively this year and in the coming decades…

As we enter a “new year” and “new decade” it is important that you renew your mind with more effective ways of managing your finances so that you can build wealth in a way that provides you the opportunity to do what “you” like to do.

 

As the clock strikes twelve many are celebrating and making resolutions for the new year.

 

However, TheWealthIncreaser.com thought that the time was right to help others get the year started off financially in a strong way by creating this page just after midnight (eastern time zone in the United States) to usher in the new year.

 

In this discussion TheWealthIncreaser.com will discuss ways that you can achieve more now—and in your future and it starts with utilizing 3 steps that are outlined below:

 

  • Know Your Cash Flow Position

It is important that you budget your time and finances wisely by creating a Budget or cash flow statement at this time so that you can see how your inflow and outflow of cash affects your life on a monthly basis.

 

By knowing if you have discretionary income at this time you can plan out the remainder of the year from a position of strength and not be pulled in directions that are not of your choosing.

 

Likewise an Income statement and Balance sheet can assist you and help you build your Net worth more effectively at the various stages of your life.

 

  • Know Your Credit Management Style

You must have an effective way of managing your credit and you must do your best to keep Negative information off of your report, Utilize your available credit appropriately, know how Time affects your credit, know how the Types of credit affects your credit and know how too many hard Inquiries affect your credit.

 

It is important that you realize that credit management is not that difficult for those who are willing to “put forth the required effort” and make a real commitment to live out their life with a spirit of abundance!

 

Always realize that once you start managing your credit effectively it will be as if you are on cruise control as the process will be made easier over time.  However, it is you who must show that you are committed on the front end and that starts by “mastering the 5 credit factors” so that you can put yourself (not creditors) in control of your finances.

 

  • Know How to Manage Your Finances in a Comprehensive Manner

It is important that you have clarity or a clear picture of “what” you must be aware of financially so that you can manage your finances at a very high level.

 

You must have an understanding of how to maximize your use of Insurance, Investments, Taxes, Emergency fund, Education planning, Estate planning/wills and Retirement planning throughout your lifetime.

 

By consistently analyzing and improving upon your finances in a comprehensive manner you open up the possibility of reaching your goals and living your life in a manner that is more advantageous for you and your family.

 

Conclusion

 

By adhering to the three steps in this discussion you can set yourself and your family up for a more prosperous year and decade.

 

You can bring into existence what you desire most!

 

The yearly vacations that you deserve, the healthier eating that you deserve, the health club membership that you deserve, the retirement number that you need to reach and much more can be “within your sights” if you align the proper knowledge and application with the goals that you desire.

 

You now know how to apply concrete steps that can take you toward the goals that you desire in a more efficient and effective manner.

 

You must pursue what you desire in a determined, never quit type of way if you desire to make your dreams come true–today.

 

By landing on this page and “visiting the above links” you can achieve more than you think and open up real possibilities for a “new era” of financial success throughout your lifetime!

 

You must realize that in the year 2020–you can start on a path toward achieving plenty–and make sour grapes of your past a distant memory!

 

All the best toward your continued success this year and in the decades that will follow…

 

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Business Expenses & Wealth Building

Learn how you can enhance your business revenue by using business expenses more effectively…

 

If you are currently a business owner, or desire to be one—it is important that you earn income and you know “the deductions that you can claim” now and in your future.

 

In this discussion TheWealthIncreaser.com will discuss a number of deductions or business expenses that you can take to help lessen your tax burden.

 

With this being the creation of the last page of this decade for the creator of TheWealthIncreaser.com and the 100th blog page on this site TheWealthIncreaser.com thought that an appropriate topic of discussion for those who desire to build wealth in the next decade and beyond was to show in clear terms how to use “business expenses” to build your business more efficiently–and effectively.

 

Although this discussion is longer than most, it is important that you “lock-in” on this discussion and utilize your mind at a high level so that you can see clearly where you can use business expenses to achieve more in the coming years.

 

Record Keeping

 

It is important that you realize the importance of record keeping whether it be for travel, meals, entertainment, office in the home, building, warehouse, office out of the home, automobile usage for business, advertising and any other expense related to your business.

 

It is important that you realize that most expenses—and in some cases all expenses that are directly related to your business—can or have the potential to be deductible on your individual or business tax return—and it is you who must keep records in an acceptable way to meet the scrutiny of the IRS.

 

All of the business expenses that follow have one thing in common—they all require that you keep effective records so that you can protect your interest if you face IRS scrutiny.

 

In the following paragraphs we will detail a number of critical expenses and show you ways that they can help you lower your taxable income.

 

Whether you now have (or are contemplating) forming a business as a sole proprietor, partnership, LLC or corporation–the discussion that follows can help you strategically plan your business and achieve more throughout your lifetime.

 

Automobile Expenses

 

You can use actual expenses or mileage to deduct automobile expenses and that topic will be discussed in greater detail later in this discussion.

 

For now, be aware that the standard mileage rate increased to 58 cents per mile for the 2019 tax year—up from 54.5 cents per mile in 2018.

 

Always remember that “depreciation” which will be discussed later, is already factored into the 58 cent mileage rate mentioned above.

 

For 2019, the first-year limit on depreciation, special depreciation allowance, and section 179 deduction for vehicles acquired before September 28, 2017, and placed in service during 2019 is $14,900.

 

The first-year limit on depreciation, special depreciation allowance, and section 179 deduction for vehicles acquired after September 27, 2017, and placed in service during 2019 is $18,100.

 

If you elect not to claim a special depreciation allowance for a vehicle placed in service in 2019, the amount is $10,100.

 

Meals & Entertainment

 

In general, entertainment expenses are no longer deductible.

 

The cost of business meals generally remains deductible, subject to the 50% limitation.

 

The maximum amount you can elect to deduct for most section 179 property (including cars, trucks, and vans) you placed in service in tax years beginning in 2018 and forward is $1,000,000.

 

This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,500,000.

 

For 2018 and 2019, the special (“bonus”) depreciation allowance on qualified property (including cars, trucks, and vans) is 100% for qualified property acquired and placed in service after September 27, 2017 and placed in service before January 2023, and is reduced 20% each year after for property placed in service before January 2027.

 

For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job.

 

An ordinary expense is one that is common and accepted in your trade or business.

 

A necessary expense is one that is helpful and appropriate for your business.

 

An expense does not have to be required to be considered necessary!

 

If you are in the military and you are transferred from one permanent duty station to another, you may have deductible moving expenses—for most, moving expenses are no longer deductible.

 

Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home.

 

It includes the entire city or general area in which your business or work is located.

 

If you have more than one regular place of business, your tax home is your main place of business.

 

If you move around a lot you are considered an itinerant (a transient) and your tax home is wherever you work.

 

As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home.

 

If you have more than one place of work, consider the following when determining which one is your main place of business or work:

 

  • The total time you ordinarily spend in each place.

 

  • The level of your business activity in each place.

 

  • Whether your income from each place is significant or insignificant.

 

If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home.

 

You also cannot deduct the cost of meals and lodging while at your tax home.

 

If you are on a temporary assignments or job there are nuances to your tax treatment that may require additional analysis by your tax professional.

 

Note: there are exceptions for federal crime investigators or prosecutors

 

When you travel away from home on business, you should keep records of all the expenses you have and any advances that you receive from your employer.

 

You can use a log, diary, notebook, or any other written record to keep track of your expenses.

 

The types of expenses you need to record, along with supporting documentation include meals:

 

There is a 50% limit on meals.

 

You can figure your meals expense using either of the following two methods:

 

1) Actual cost

2) The standard meal allowance

 

Both of these methods are explained below.

 

But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals.

 

The actual cost method is quite simple and it only requires that you keep records of your meal costs and divide the cost by 50 percent.  You now have your meal deduction using the actual cost method.

 

If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel.  You deduct a per-diem amount based on IRS guidelines.

 

For travel between October 1, 2018 and September 30, 2019, the rate for most localities in the United States is $60 a day.

 

Note: The rates for the remainder of 2019 had not been published as of the date of this article

 

You can find this information (organized by state) at gsa.gov/perdiem.

 

Enter a zip code or select a city and state for the per diem rates for the current fiscal year.

 

Per diem rates for prior fiscal years are available by using the drop-down menu.

 

Incidental-expenses-only method

 

You can use an optional method (instead of actual cost) for deducting incidental expenses only.

 

The amount of the deduction is $5 a day.

 

You can use this method only if you did not pay or incur any meal expenses.

 

You cannot use this method on any day that you use the standard meal allowance.

 

This method is subject to the proration rules for partial days.

 

Building Mortgage or Lease Payments

 

If you are purchasing or renting a building for business use you can deduct the mortgage or lease payments.

 

Insurance, taxes and other fees related to the use and upkeep of the property such as maintenance, lawn care, grounds and other fees are also deductible.

 

Business Gifts

 

Always realize that there is a $25 limit on gifts as far as deductibility is concerned.

 

You can deduct no more than $25 for business gifts that you give directly or indirectly to any one person during your tax year.

 

Transportation Expenses

 

These expenses include the cost of transportation by air, rail, bus, taxi, etc., and the cost of driving and maintaining your car.

 

Also, daily transportation expenses can be deducted if:

 

(1) you have one or more regular work locations away from your residence, or

 

(2) your residence is your principal place of business and you incur expenses going between the residence and another work location in the same trade or business, regardless of whether the work is temporary or permanent and regardless of the distance.

 

If you want to use the “standard mileage rate” for a car you own, you must choose to use it in the first year the car is available for use in your business.

 

“Then in later years, you can choose to use either the standard mileage rate or actual expenses.”

 

If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period.

 

If you purchase a car and change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation.

 

Standard mileage rate not allowed

 

You cannot use the standard mileage rate if you:

 

1) use five or more cars at the same time (such as in fleet operations)

2)  claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS (as discussed later under Methods of depreciation under Depreciation Deduction)

3) claimed a section 179 deduction (discussed later) on the car

4) claimed the special depreciation allowance on the car, or

5) claimed actual car expenses after 1997 for a car you leased.

 

If you are self-employed and use your car in your business, you can deduct the business part of state and local personal property taxes on motor vehicles on Schedule C, Schedule C-EZ, or Schedule F (Form 1040).

 

If you itemize your deductions, you can include the remainder of your state and local personal property taxes on the car on Schedule A (Form 1040).

 

In addition to using the standard mileage rate, you can deduct any business related parking fees and tolls.

 

Parking fees that you pay to park your car at your place of work are nondeductible commuting expenses!

 

NOTE: If you qualify to use both methods, you may want to figure your deduction both ways to see which gives you a larger deduction.

 

Actual car expenses include:

 

Depreciation

Tolls/Parking fees

Licenses

Lease payments

Registration fees

Gas

Insurance

Repairs

Oil

Garage rent

Tires

 

If you have “fully depreciated” a car that you still use in your business, you can continue to claim your other actual car expenses.

 

Be sure you continue to keep records!

 

If you use your car for both business and personal purposes, you must divide your expenses between business and personal use.

 

You can divide your expense based on the miles driven for each purpose—that is why effective record keeping is so important.

 

If you use a vehicle provided by your employer for business purposes, you can deduct your actual unreimbursed car expenses.

 

Casualty and theft losses

 

If your car is damaged, destroyed, or stolen—you may be able to deduct part of the loss that is not covered by insurance.

 

Note: For tax years 2018 through 2025, if you are an individual, casualty and theft losses of personal-use property are deductible only if the losses are attributable to a federally declared disaster,  however business casualty and theft losses are still deductible.

 

You can elect to recover all or part of the cost of a car that is qualifying section 179 property, up to a limit, by deducting it in the year you place the property in service.

 

What is the section 179 deduction?

 

A section 179 write off allows you to write off part or the entire purchase price of an asset in one year as opposed to depreciating and writing it off over a number of years based on its asset class and depreciation schedule.

 

Therefore if your goal is to reduce your taxable income you may want to write it off in one year.  Likewise if you desire to spread out the deduction over a number of years you have that option as well.

 

You must normally make the 179 election in a timely manner in order for it to be allowed by the IRS.

 

If you elect the section 179 deduction, you must reduce your depreciable basis in the car by the amount of the section 179 deduction.

 

“You can claim the section 179 deduction only in the year you place the car in service.”

 

For this purpose, a car is placed in service when it is ready and available for a specifically assigned use in a trade or business.

 

Even if you are not using the property, it is in service when it is ready and available for its specifically assigned use.

 

A car first used for personal purposes cannot qualify for the 179 deduction in a later year when its use changes to business.

 

Let’s say in 2018 you bought a new porsche and placed it in service for personal purposes.

 

In 2019, you began to use it for business.

 

Changing its use to business use does not qualify the cost of your car for a section 179 deduction in 2019.

 

“However, you can claim a depreciation deduction for the business use of the car starting in 2019.”

 

Requirements for 179 deduction

 

More than 50% business use is a requirement.

 

You must use the property more than 50% for business to claim any section 179 deduction.

 

If you used the property more than 50% for business, multiply the cost of the property by the percentage of business use.

 

The result is the cost of the property that can qualify for the section 179 deduction.

 

If the cost of your qualifying section 179 property placed in service in 2019 is over $2,500,000, you must reduce the $1,000,000 dollar limit (but not below zero) by the amount of cost over $2,500,000.

 

Let’s say the cost of your section 179 property placed in service during 2019 is $3,500,000 or more, you cannot take a section 179 deduction.

 

The total amount you can deduct under section 179 each year after you apply the limits listed above cannot be more than the taxable income from the active conduct of any trade or business during the year.

 

If you are married and file a joint return, you and your spouse are treated as one taxpayer in determining any reduction to the dollar limit, regardless of which of you purchased the property or placed it in service.

 

If you or your spouse file separate returns, you are treated as one taxpayer for the dollar limit. You must allocate the dollar limit (after any reduction) between you and your spouse.

 

Employees use Form 2106 to make the election and report the section 179 deduction.

 

All others use Form 4562 to make an election.

 

You must keep records that show the specific identification of each piece of qualifying section 179 property.

 

These records must show how you acquired the property, the person or business you acquired the property from, and when you placed the property in service.

 

Note: Daycare centers, travel by air, cruise ships and rental income have a special set of rules as it relates to deductions.

 

You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement.

 

You must generally prepare a written record for it to be considered adequate.

 

This is because written evidence is more reliable than oral evidence alone!

 

However, if you prepare a record on a computer, it is considered an adequate record.

 

Be sure to record the Cost—Date—and Purpose—especially on Gifts, Travel and Transportation.

 

If you do so in written form that is acceptable.  Also, if done on your computer that is usually ok as well!

 

You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record.

 

You should also keep documentary evidence that, together with your record, will support each element of an expense.

 

Documentary evidence

 

You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses.

 

Exception:

 

Documentary evidence is not needed if any of the following conditions apply:

 

• You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging.

 

  • Your expense, other than lodging, is less than $75.

 

  • You have a transportation expense for which a receipt is not readily available.

 

Adequate evidence

 

Documentary evidence ordinarily will be considered adequate if it shows the:

 

-amount,

-date,

-place, and

-essential character of the expense

 

For example, a stay at an Air BnB where you get a receipt is enough to support expenses for business travel if it has all of the following information.

 

  • The name and location of the Air BnB.
  • The dates you stayed there.
  • Separate amounts for charges such as lodging, meals, and telephone calls.

 

A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information.

 

  • The name and location of the restaurant.
  • The number of people served.
  • The date and amount of the expense.

 

If a charge is made for items other than food and beverages, the receipt must show that this is the case.

 

Canceled check

 

A canceled check, together with a bill from the payee, ordinarily establishes the cost.

 

However, a canceled check by itself does not prove a business expense without other evidence to show that it was for a business purpose.

 

Timely-kept records

 

You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence.

 

A timely-kept record has more value than a statement prepared later when generally there is a lack of accurate recall.

 

You do not need to write down the elements of every expense on the day of the expense.

 

“If you maintain a log on a weekly basis that accounts for use during the week, the log is considered a timely kept record.”

 

If you give your employer, client, or customer an expense account statement, it can also be considered a timely kept record.

 

This is true if you copy it from your account book, diary, log, statement of expense, trip sheets, or similar record.

 

Proving business purpose

 

You must generally provide a written statement of the business purpose of an expense.

 

However, the degree of proof varies according to the circumstances in each case.

 

If the business purpose of an expense is clear from the surrounding circumstances, then you do not need to give a written explanation.

 

What if you have incomplete records?

 

If you do not have complete records to prove an element of an expense, then you must prove the element with:

 

  • Your own written or oral statement containing specific information about the element, and

 

  • Other supporting evidence that is sufficient to establish the element.

 

If the element is the description of a gift, or the cost, time, place, or date of an expense, the supporting evidence must be either direct evidence or documentary evidence.

 

Direct evidence can be written statements, or the oral testimony of your guests or other witnesses setting forth detailed information about the element.

 

Documentary evidence can be receipts, paid bills, or similar evidence.

 

If the element is either the business relationship of your guests or the business purpose of the amount spent, the supporting evidence can be circumstantial, rather than direct.

 

For example, the nature of your work, such as making deliveries, provides circumstantial evidence of the use of your car for business purposes.

 

Invoices of deliveries establish when you used the car for business.

 

Sampling

 

Another record keeping strategy that many are unaware of but could prove helpful is the use of sampling.

 

You can keep an adequate record for parts of a tax year and use that record to prove the amount of business or investment use for the entire year.

 

You must demonstrate by other evidence that the periods for which an adequate record is kept are representative of the use throughout the tax year.

 

Separating expenses

 

Each separate payment is generally considered a separate expense.

 

For example, if you entertain a customer or client at dinner and then go to a show on broadway, the dinner expense and the cost of the broadway tickets are two separate expenses.

 

You must record them separately in your records.

 

Combining items

 

You can make one daily entry in your record for reasonable categories of expenses.

 

Examples are taxi fares, telephone calls, or other incidental travel costs.

 

Meals should be in a separate category.

 

You can include tips for meal-related services with the costs of the meals.

 

Expenses of a similar nature occurring during the course of a single event are considered a single expense.

 

Car expenses

 

You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record.

 

Minimal personal use, such as a stop for lunch on the way between two business stops, is not an interruption of business use.

 

Allocating total cost of travel or entertainment

 

If you can prove the total cost of travel or entertainment but you cannot prove how much it cost for each person who participated in the event, you may have to allocate the total cost among you and your guests on a pro-rata basis.

 

To do so, you must establish the number of persons who participated in the event.

 

If your return is examined, you may have to provide additional information to the IRS.

 

This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed.

 

How long should you keep records and receipts?

 

You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code.

 

Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file your income tax return on which the deduction is claimed.

 

A return filed early is considered filed on the due date.

 

There are certain nuances and rules for independent contractors and clients, fee-basis officials, certain performing artists, Armed Forces reservists, and certain disabled employees–so if you fall in one or more of those categories be sure to consult your tax professional for more up to date information.

 

You report your gift expenses and transportation expenses, other than car expenses, on line 27a, and you report your car expenses on line 9 of schedule C if you file as a sole proprietor.

 

You would also complete Part IV of the form unless you have to file Form 4562 for depreciation or amortization.

 

Employee Business Expenses no longer deductible

 

If you are an employee and your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2.

 

The three simple guidelines an Accountable Plan must follow to be considered valid are:

 

1) all expenses to be reimbursed through the plan must have a business connection,

 

2) expenses must be “timely substantiated,” and

 

3) any excess advances provided to the employee must be “timely repaid.”

 

“Employee” expenses for business use of the home are no longer allowed.

 

If you are an employee, you can no longer claim any miscellaneous itemized deductions on Schedule A, including expenses for using your home as an employee.

 

Miscellaneous itemized deductions are those deductions that would have been subject to the 2% of adjusted gross income limitation had they not been eliminated for most with the 2017 Tax and Jobs Act.

 

You cannot claim a deduction for mortgage insurance premiums for expenses paid or accrued after 2017 if you have a home office.

 

Home Office Deduction

 

You can use two methods to claim the home office deduction:

 

When figuring the amount you can deduct for the business use of your home, you will use either your actual expenses or a simplified method.

 

  • Square Foot Approach, or

 

  • Simplified method for business use of home deduction.

 

Actual Expenses (Square Foot Approach)

 

You simply divide your business usage area by the square foot area of your house to come up with the business percentage.

 

All expenses associated with your home office and home would be multiplied by the percentage in order to come up with your business deduction.

 

To qualify to deduct expenses for business use of your home, you must use part of your home:

 

  • Exclusively and regularly as your principal place of business (defined later),
  • Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business,
  • In the case of a separate structure which is not attached to your home, in connection with your trade or business,
  • On a regular basis for certain storage use (see Storage of inventory or product samples, later),
  • For rental use, or
  • As a daycare facility (see Daycare Facility, later).

 

“You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business.

 

The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers.”

 

After you determine that you meet the tests under Qualifying for a Deduction, you can begin to figure how much you can deduct.

 

Simplified Method

 

The IRS provides a simplified method to figure your expenses for business use of your home.

 

Electing to use the simplified method.

 

The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses.

 

“You choose whether or not to figure your deduction using the simplified method each tax year.”

 

With the simplified method you receive a standard deduction of $5 per square foot, up to 300 square feet (the deduction can’t exceed $1,500).

 

$5 multiplied by 300 square feet equals $1,500 is your maximum deduction!

 

Qualified Business Income

 

Although not a direct expense QBI or qualified business income—may help you lower your taxes and can be quite helpful to those who qualify.

 

QBI: If your business is a specified service, trade or business and operates as a sole proprietor, partnership, LLC member or S corporation stockholder—you could possibly qualify for the QBI deduction or pass-through deduction (if otherwise eligible) provided you have taxable income below certain amounts.

 

Conclusion

 

By landing on this page you have learned about business expenses in great detail.

 

For those individuals or companies that are new to business or existing companies or individuals who want to maximize their deductions—you can now do so by planning effectively.

 

The most common fully deductible business expenses in alphabetical order include the following:

 

  • Accounting fees

 

  • Advertising

 

  • Bank charges

 

  • Commissions and sales expenses

 

  • Consultation expenses

 

  • Continuing professional education expenses

 

  • Contract labor costs

 

  • Credit and collection fees

 

  • Delivery charges

 

  • Dues and subscriptions

 

  • Employee benefit programs

 

  • Equipment rentals

 

  • Factory expenses

 

  • Insurance

 

  • Interest paid

 

  • Internet subscriptions, domain names, and hosting

 

  • Laundry

 

  • Legal fees

 

  • Licenses

 

  • Maintenance and repairs

 

  • Office expenses and supplies

 

  • Pension and profit-sharing plans

 

  • Postage

 

  • Printing and copying expenses

 

  • Professional development and training fees

 

  • Professional fees

 

  • Promotion

 

  • Rent/Lease payments

 

  • Salaries, wages, and other compensation

 

  • Security

 

  • Small tools and equipment

 

  • Software

 

  • Supplies

 

  • Telephone

 

  • Trade discounts

 

  • Travel

 

  • Utilities

 

  • Web Services

 

By utilizing the above expenses to offset against your income for the year you can use the above expenses to strategically increase or decrease your tax position as it relates to your payment of business taxes.  Keep in mind most of the expenses covered in this discussion apply to sole proprietors, LLC’s, LLP’s, partnerships, S corporations and C corporations.

 

Whether you are a sole proprietor, LLC, partnership or corporation—you can manage your tax position so that you can achieve the goals that you desire as far as your business and personal growth are concerned.

 

If your goal is to get in position to use credit in your future—you may want to maximize your income and minimize your expenses to get the loan that you need at an appropriate rate and terms.

 

By doing so you can possibly put yourself in stronger position in the eyes of financial institutions when you apply for credit or a particular type of loan that will look at your “businesses financials” and/or “personal financials” to determine if you or your company meet the lending criteria that they require.

 

If you anticipate no need to use credit in the short or intermediate time period you may want to maximize your expenses and lower your tax payments.

 

If your goals fall in the middle you can plan accordingly as well.

 

All the best toward minimizing or maximizing your expenses and improving your circumstances as we enter 2020 and beyond.

 

Success lives in you—now is the time that you make your dreams come true…

 

Return to Top

 

Return from Business Expenses & Wealth Building to Taxes & Wealth Building

 

Return from Business Expenses & Wealth Building to Taxes & Personal Finance

 

Return from Business Expenses & Wealth Building to Tax Projections & Wealth Building

 

Return from Business Expenses & Wealth Building to Mastering Your Credit

 

Return from Business Expenses & Wealth Building to The “3 Step Structured Approach” to Managing Your Finances

 

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Action & Wealth Building

Learn why you must ROAR and SOAR by taking consistent action as you build wealth…

 

It is important that you remember your past successes, open your mind up to what is possible, act on a daily basis in a manner that says you are a winner and reward yourself as you build wealth–as by doing so you can live like a lion (ROAR) and be the king of your finances!

 

Likewise, you can attain all of the goals that you desire by sincerely approaching your financial future, organizing in your mind the necessary (right) action that you need to take and realizing that it will take time to reach the altitude (goals) that you desire.  By doing so you can (SOAR) and see your future clearly.

 

You can ROAR like a lion and SOAR like an eagle and rise above your current financial position and go where you need or want to be while you are here on planet earth by taking the right action–consistently!

 

In this discussion TheWealthIncreaser.com will show you why taking the right actions on a consistent basis can help you build wealth more efficiently.

 

Learn why you must ROAR…

 

It is important that you remember your past successes and use them as fuel to reach your future accomplishments.

 

In a similar manner you must not let adverse situations whether in your past, at this time or at a future date deter you from reaching your goals.  You must use all occurrences that can help you reach your goals more efficiently as fuel to reach higher.

 

By opening your mind up to what is truly possible in your future you can put yourself in position for consistent success as you build wealth.

 

You can take decisive action and achieve at a higher level and make the future that you desire a reality.

 

By doing so you can take the yearly vacations that you desire, purchase that vacation home and boat that you always dreamed of, fund your retirement at a level that allows you the ability to enjoy life on your terms or reach any other goal or objective that you may want (or need) to achieve.

 

Learn why you must SOAR…

 

In life it is important that you give it your best in all areas.  When it comes to building wealth efficiently it is more important than ever that you approach your finances and wealth building activity in a sincere manner.

 

You cannot half-heartedly pursue the success that you desire.  You must put your mind and heart into it–and have every intention of reaching the goals that you desire.

 

You must use all occurrences that can help you reach your goals more efficiently as fuel to fly higher (SOAR) and leave all excuses behind.

 

By organizing in your mind the steps that you need to take to achieve lasting success–you can reach many of your goals in time certain!

 

It is important that you know your current financial condition, you have a meaningful understanding of how you utilize credit and you know all of the areas of your finances that you must address throughout your lifetime.

 

Conclusion

 

By attaining the right level of financial knowledge you can build wealth in a manner that can lead to you paying less on what you borrow, help you forge greater relationships, attend the educational institutions that you and/or your children desire to attend—and much more by increasing your knowledge of effective finance management at this time in your life.

 

Although math is taught throughout the schooling years in many parts of the world–the effective management of money and finances are often barely touched upon.

 

However, by taking action–or shall TheWealthIncreaser.com say–by “taking the right action” you can bring into reality your wealth building dreams and enjoy life in the manner in which it was meant to be enjoyed by you and your family.

 

Even though you may have had a poor or non-existent approach to money management in the past–you can strike an effective balance by using the math that you have learned during your school years and the pages on this site–to get your financial and wealth building future going right.

 

It is important that you manage your monthly income and expenses effectively so that you can have access to capital so that you can reach the goals that you desire throughout your lifetime.

 

You are not your current predicament!

 

By properly managing your finances at this time it can lead to you paying less on what you borrow, improve the relationships in your life and and provide you the opportunity to do what you like to do on your terms–not the terms of creditors and others who could really care less about your success when you really get down to it.

 

During this holiday season and throughout your lifetime TheWealthIncreaser.com wishes you peace, financial security and the presence of mind to look toward your future in a joyous manner.

 

The spirit of abundance must manifest in your heart and mind and you must encourage yourself to reach higher on a consistent basis–as by doing so you can achieve the goals that you desire!

 

You must not let what may appear to be unfair situations or adverse happenings in your life deter or detour you from achieving the goals that are already achieved–if only you take the right action consistently–right NOW!

 

All the best as you ROAR louder and SOAR higher throughout your lifetime…

 

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Note: TheWealthIncreaser.com is not a Search Engine Optimized site (SEO) but a Your Mind Optimized site (YMO) that is intentionally designed for your continuous wealth building success…

 

 Copyright© 2014-2020—TheWealthIncreaser.com–All Rights Reserved

 

Enthusiasm & Wealth Building

Learn why you must eagerly approach your financial future if you desire to build the type of wealth that will stand the test of time…

 

Are you eagerly approaching (being vigilant toward your wealth building efforts) your financial future and keeping a watchful or close eye on events and people as it relates to your finances–with enthusiasm–and a real zest toward achieving success?

 

Furthermore—are you leaving your financial future up to chance or happenstance and approaching your finances in a manner where you could care less about what lies ahead in your life—whether by your thoughts and/or actions?

 

If you are not, do you really know why it is important that you take charge of your finances and wealth building activity by approaching your wealth building efforts in a comprehensive manner—and in a manner where you know you can’t be stopped?

 

In this discussion TheWealthIncreaseer.com will discuss why gaining the knowledge and practical application of how you can manage your financial affairs in a better—more comprehensive manner during your lifetime is so important.

 

It is important that you think intelligently, accurately, analytically and critically and pursue the success that you desire and deserve in a consistent and proactive manner.

 

You must realize that you possess inside of you the ability to do far more—and achieve unlimited success as you open a new door.

 

Many are looking for other occurrences or people to do it for them—or miracles to happen. 

 

You must realize that you are the miracle that you have been waiting for—because you are here at this particular time and space and you can use the enthusiasm or the energy that you have inside of you—to make your and your family’s dreams come true!

 

You must look out into the horizon and see the success that you desire and use every fiber of your being to pursue that success—whether it be building your wealth now—or achieving any other goal that you have convinced your mind and heart into believing.

 

You must realize that by putting in place a written plan for success that takes into account key factors that are needed for long term financial success—you set your mind and heart up for giving it your best!

 

Your knowledge of your current financial position, your current credit management style and how you approach your finances from a comprehensive angle can provide you a new way of looking at your future that has success written all over it.

 

If you decide to put in place a plan that provides you a roadmap to success you can enthusiastically go after what you desire and achieve what may have seemed impossible or improbable at first glance.

 

Now is the time that you get out in front of your finances and enthusiastically pursue what you desire—at a level of effort that will not allow you to tire—or lose motivation toward reaching the goals that you desire.

 

Regardless of your money management personality–you can make the future that you desire a reality.

 

All the best to your higher level of enthusiasm and new found success…

 

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Copyright© 2014-2020–TheWealthincreaser.com–All Rights Reserved

 

Note: TheWealthIncreaser.com is not a Search Engine Optimized site (SEO) but a Your Mind Optimized site (YMO) that is intentionally designed for your continuous wealth building success…

 

SEO (Search Engine Optimized) versus YMO (Your Mind Optimized) Sites & Wealth Building

 

Learn why Y0ur Mind Optimized (YMO) websites are in most cases far superior to Search Engine Optimized (SEO) websites when it comes to building wealth…

 

It is important that you realize that the type of sites that you frequent are important as you build wealth.

 

Just because a site hits the top of the major search engines does not mean that it is the site that will provide more value to you and your family when it comes to building wealth throughout your lifetime.

 

It is important that you frequent sites that also expand your mind and opens up your mind to new possibilities as you build wealth.

 

In this discussion TheWealthIncreaser.com will explain why it is important to frequent sites that will optimize your mind and open up new ways to approach wealth building that is more effective–and efficiently moves you toward your goals.

 

SEO sites

 

Search Engine Optimized (SEO sites) sites pull a lot of visitors to their sites for varying reasons and in many cases the value of their wealth building content.

 

In other cases SEO sites may pull in visitors for other reasons.  The high number of visitors seem to provide validation to many visitors that the site has high value content—when in many cases that is incorrect.

 

Many do not provide you what you expected to find.  In many other instances you will often drift away looking for a more appropriate site that has the wealth building material or content that you are looking for.  You will often drift from page one of the Search Engine results to pages 2-3-4-5- etcetera–in an effort to find what you are really looking for.

 

It is often on those pages that you will find what you are really looking for–a YMO site–which is discussed in greater detail below.

 

YMO sites

 

Your Mind Optimized (YMO sites) sites on the other hand may not have high visitors to their site, however they depend on higher value content that attracts fewer visitors who are really serious about their financial future–and YMO sites are not as effective in attracting the search engines–as they will often not be found on page one of the search engine results.

 

Those who are looking for high value wealth building content will normally use long-tail searches to find the information that they are looking for–and YMO sites will normally have what they are looking for.  However, those YMO sites that don’t use advertising, link strategies and other SEO techniques at the appropriate level will normally be found even further down on the search results pages.

 

YMO sites offer content that is more germane and helpful for what you are trying to do in your wealth building efforts and will normally provide you a more appropriate route toward the goals that you are pursuing.

 

Many YMO sites provide a path to success for you and your family that is more direct and will get you the results that you desire (or need to achieve) to make your life more enjoyable and meaningful.

 

Learn why TheWealthIncreaser.com is a YMO site and not a SEO site

Learn why Realty-1-Strategic-Advisors.com is a YMO site and not a SEO site...

Learn why the-best-atlanta-real-estate-advice.com is a YMO site and not a SEO site...

 

Conclusion

 

Niche marketing, focused key words, link strategies and the like can lead to SEO sites possibly going to the top of the major search engines.

 

However, on many occasions what ends up at the top of the search engines are not the results that you were looking for that could really move you forward in a more efficient and effective manner as you build wealth.

 

You must use your time wisely and search out the best sites on the web that can directly lead to the success that you desire as you build wealth.

 

You must analyze the wealth building sites that you frequent in a “careful, analytical, accurate and critical manner” to determine if the site that you are visiting is the best site that works with your mind or money management personality–depending on the goals that you are pursuing!

 

It is important that you realize that TheWealthIncreaser.com receives countless offers on a weekly basis from SEO companies, advertisers and others to utilize this site for their benefit–however because this site is a YMO site and the creator of TheWealthIncreaser.com is fortunately in position to not have a need for those services or revenue sources–their offers can be consistently rejected.

 

TheWealthIncreaser.com  is a site that is designed to move you forward in the most efficient manner possible and in a way that optimizes your mind–so that you can use the site as a “springboard” to achieve major success throughout your lifetime.

 

On this site you won’t see the overuse of SEO techniques, ads or other distractions that slow you down or prevent you from achieving your financial (and lifetime) goals as you journey toward financial freedom!

 

The creator of TheWealthIncreraser.com sees the over-use of niche marketing, focused key words, link strategies and the like as a distraction to you–and a time constraint on the creator of TheWealthIncreraser.comas it slows down the creation of high value content that can benefit you on a consistent basis.

 

You must approach your finances in the right frame of mind!

 

As someone who wants to improve your credit and finances “you” must have a yearning for achieving wealth building success at your highest level–and this site is designed with you in mind.

 

You must have a yearning to operate daily by using your “mental working knowledge” to achieve more throughout your life!

 

Even though TheWealthIncreaser.com writes content in a style and manner that you may have never experienced–it is more important that you realize that this site is designed to “benefit you optimally throughout your lifetime” so that you can pursue success and utilize your mind optimally for the benefit of not only yourself–but your family and future generations yet unborn.

 

All the best toward your YMO success…

 

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Return from SEO (Search Engine Optimized) versus YMO (Your Mind Optimized) Sites & Wealth Building to Who is the creator of TheWealthIncreaser.com

 

Thomas (TJ) Underwood is the creator of three of the leading results oriented wealth building blogs that can be found in the internet universe including the creator of TheWealthIncreaser.com. 

 

He is also the first blogger to coin the term YMO (Your Mind Optimized) as it relates to websites and blogs and he continuously strives to provide web visitors new and highly inspiring ways of achieving their financial goals.  All of the articles that he creates are designed to provide you optimal results (YMO content) as you journey toward financial freedom and reaching your dreams.

 

Thomas (TJ) Underwood can be reached by email at tj@TheWealthIncreaser.com.

 

Note: TheWealthIncreaser.com is not a Search Engine Optimized site (SEO) but a Your Mind Optimized site (YMO) that is intentionally designed for your continuous wealth building success…

 

 

Copyright© 2014 to 2020—TheWealthIncreaser.com—All Rights Reserved

 

New Dimensions & Wealth Building

Learn how you can look at the aspect of wealth building from more beneficial angles so that you can achieve your dreams…

 

It is important that you see your credit and financial future in clear and concise terms and it is important that you see your future from a point of view that provides you the clarity that you need.

 

You must be able to look at your finances from a number of angles or dimensions as what you feel, hear, see, smell, sense, taste, read and comprehend can all give you a different perspective of what is actually occurring.

 

In this discussion TheWealthIncreaser.com will focus on the dimension or aspect of thinking  that can move you forward toward your dreams in a more efficient manner.

 

By comprehending the following paragraphs you can start on a serious path toward the future that you desire–and deserve!

 

You can gain the knowledge that you need to see success in the management of your credit and finances from an angle of thought that will lead to continuous success on a consistent basis.

 

Your mind can go in many different directions and take on new dimensions as it relates to your finances and it is you who must be aware of the direction that you are going in—and it is you who must decide to control that direction for your and your family’s greater benefit.

 

You can now look at your future from a different vantage point or angle.  You can then choose among what can possibly move you and your family along at a more proficient pace.

 

Cash Flow Analysis

 

You must know what you take in and pay out monthly so that you can formulate a plan that will take you to a place that you need–or want to be.  By doing so you can start on a new path toward the success that you desire.

 

You can start to dream big and formulate goals that are meaningful and significant to you that will make your and your family’s life more enjoyable while you journey toward success.

 

Credit Mastery

 

It is important that you have a beneficial understanding of how credit works so that you can achieve more throughout your lifetime.

 

You must understand how your debt level and monthly income interact and you must put together a debt pay down or payoff schedule if you desire to achieve more on a consistent basis.

 

Finance Mastery

 

Insurance

Investments

Taxes

Education Planning

Estate Planning/Wills

Retirement Planning

 

Compounding and understanding of the various types of income must be a part of your mindset on a daily basis.

 

You must properly establish or maintain an emergency fund and also look at the effect of compounding and know how it will affect your wealth building efforts.

 

You must look out into the future and project what you will earn and owe as far as your taxable income is concerned.

 

And although mastering the above may appear to be a difficult task, you can still learn what you need to learn efficiently (and at a level that allows you to perform in a way that is more effective) during your lifetime in a style and manner that will allow you to move to a new dimension–grow,  move forward and achieve what you desire.

 

In a significant way now is the new day where success can go your way!

 

Look out into the horizon and see the greatness that is in you at this time—use your mastery of the above subject matters to benefit you and your family more–and make a resolution to stay on a continuous path toward success.

 

You deserve nothing but the best.

 

Choose among the “best” in the financial industry and journey on a path toward success where you are certain that the results that you desire will occur!

 

To help ensure that you reach a “new dimension” during your lifetime the creator of TheWealthIncreaser.com decided to create the following poem to help you reach higher and reach a new dimension as you pursue your wealth building efforts.

 

Dream big

Worry small

Trust God

Love people

Laugh more

Stress less

Have fun

Live free

Be a knower and a doer

Not a taker or perpetrator

Let energy flow through your body everyday

Pursue your dreams with passion in every way

Your time is now

This site will show you how

 

It is the desire of the creator of TheWealthIncreaser.com that this discussion has sparked something within you to get you on a serious path toward intelligently making your dreams come true.

 

Be sure to “explore the above links” so that you can expand your thought process and reach a new dimension that takes you to your destination and beyond.

 

All the best toward your unwavering success…

 

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Copyright© 2014-2020—TheWealthIncreaser.com—All Rights Reserved

 

Note: TheWealthIncreaser.com is not a Search Engine Optimized site (SEO) but a Your Mind Optimized site (YMO) that is intentionally designed for your continuous wealth building success…

Tax Projections & Wealth Building

Learn what you must know about short term and long term individual tax planning if you desire to build wealth more efficiently…

 

In the current economy tax planning is critical as proper planning could allow you to avoid costly mistakes that many make without even realizing that they are making mistakes.

 

It is important that you have a conceptual understanding of what you can do now to help improve your tax position when you file your 2019 taxes in 2020.

 

However, a conceptual understanding is only the starting point.

 

You must put into action tax moves that can help you in the short term (12 months or less) and the long term (12 months or more) so that you can benefit optimally as you move along at the various stages in your life.

 

After doing tax projections for many during the 2019 tax year the creator of TheWealthIncreaser.com realized that he had not done tax projections for the creator of TheWealthIncreaser.com.

 

Ok, now is a great time to show  you what you can possibly do to lighten your tax burden and also a time that the creator of TheWealthIncreaser.com could also take inventory and make positive moves as well “before” the 2019 tax year ends.

 

*Determine your current financial position

 

You must at this time determine where you are financially and that all starts with creating a budget or cash flow statement so that you can know your inflows and outflows of cash on a monthly basis.

 

By knowing what you take in and pay out you put yourself in a better position to make tax moves that you can benefit from for the current and future tax years.

 

Or another way of looking at it is–in order to know where you want to go–you must first know where you are at. By looking at your finances in advance of your tax planning you put yourself in position for “more” effective tax planning.

 

*Determine if you are maximizing your credit effort

 

Your credit or debt level must be at an acceptable level and there are moves that you can make to get to a level where you are maximizing your credit effort.

 

Are you managing your debt load effectively?  Do you have a debt payoff or debt pay down plan that is realistic and doable by you?

 

By maximizing your credit effort you put yourself in a much better position for short and long term tax planning.

 

Are you using mortgage interest, real estate taxes and other housing related deductions in a way that maximizes your tax position.

 

*Thoroughly analyze all areas of your finances including tax moves that you can make now to help in the short and long term

 

You must know how to review and effectively analyze your insurance, investments, taxes, education planning, estate planning/wills and retirement panning in a way that benefits you and your family the most.

 

You must look at the taxes that you pay to the IRS in an overall and comprehensive manner to see where and if improvements can be made.

 

Did you know that if you sell your personal residence you can receive tax-free treatment on the gain as long as several conditions are met?

 

In the following paragraphs you can learn about tax moves that you could possibly make to help lighten your tax burden now–and in your future!

 

Short Term Tax Moves

 

You can in the short term make charitable donations (the creator of TheWealthIncreaser.com will be donating a car this year as a result of reviewing tax moves at this time), possibly pay medical expenses in a way that allows you to maximize the 10% of AGI deduction for the 2019 tax year–and if you are self-employed–plan your growth in a manner that maximizes your tax position.

 

You may be able to adjust your w-4 to ensure that you don’t owe taxes or you get the tax refund or pay the amount (when you owe taxes) that you are comfortable with.

 

It is important that you know your state income tax withholding and sales tax payment position now–so that you can plan accordingly.  If you are self-employed or make some of your income from self-employment you can plan more effectively and know in advance if you will have to pay estimated taxes that are normally due if you earn income during the year (January 15, April 15, June 17 and September 16–in 2019).

 

By knowing your current or expected income, your federal and state withholding and your tax projections for the 2019 tax year and beyond you can plan for success and win in your financial life.

 

If you invest “outside of your retirement accounts” during the year you can use capital losses to offset capital gains up to $3,000 per year and carry forward the rest.

 

If you invest “inside your retirement account(s)” you can possibly avoid and/or delay the payment of your taxes.

 

You can plan your family size and educational ambitions with the current and possibly future tax advantages in mind.

 

Long Term Tax Moves

 

You can in the long term make retirement contributions in a wise manner by contributing at least to the match level of your employer, and even higher if your financial position allows you to do so.

 

You must know your federal and state withholding and tax projections for the 2020 tax year and beyond where possible.

 

If you own rental property  or other depreciating assets you can accelerate or decelerate depreciation so that it will benefit you now—and/or in future years.

 

Be sure to deduct student loan interest and use education credits in a way that benefits you and your family the most!

 

Be sure to invest both inside and outside of your retirement accounts in a manner that provides a balance between what you need and your tax position.

 

Again, if you invest “inside your retirement account(s)” you can possibly avoid and/or delay the payment of your taxes.

 

Be sure to use pre-tax accounts such as Retirement Accounts, HSA’s and MSA’s and other tax advantage accounts including both ROTH and traditional IRA’s.

 

If you invest “outside of your retirement accounts” during the year–you can use capital losses to offset capital gains up to $3,000 per year–and carry forward the excess into future year(s).

 

You can use a start up business or farm to possibly help offset your personal income taxes–if you file as a business or farm on your personal tax return.

 

If your income is too high or too low you can do short and/or long-term planning to correct that situation in a way that makes the tax system work for or with you—not against you!

 

Conclusion

 

The above strategies are proven ways that tax burdens have been lifted or eliminated and if you get a handle on your finances now and look out into the horizon you can discover more effective ways of minimizing your taxable income and lowering your taxes for the 2019 tax year and beyond.

 

Keep in mind that what is considered short or long term planning will depend on your individual and family situation as what might be short term planning for you could be long term planning for others—and vice-versa.

 

Also realize that all tax filing situations are unique so what might be effective for your neighbor or co-worker might not be effective for you.

 

And with the new tax law changes many middle class tax filers who were getting larger refunds in the past are seeing a difference–and in many cases a reduction.

 

Likewise many who got a smaller refund are seeing an increase, particularly younger families with children and household income under $100,000.

 

Almost all of those in the $400,000 and up categories have seen an increase in their refund or a decrease in the taxes that they pay.

 

Always try to maximize your retirement contributions (401k, 403(b), Federal TSP or other employer provided retirement plan) as you are allowed (2019) to contribute up to $19,000–and if age 50 plus an additional $6,000.

 

By doing so you can not only ensure that you have your retirement funds that allow you to enjoy retirement–you can also get a pre-tax benefit and lower your current taxable income–and possibly pay a lower tax rate during your retirement years, (your AGI will also be lower  when you file your 2019 tax return–thus your taxable income will be lower–giving you both a long-term and short-term benefit)!

 

Even if you don’t have a retirement plan at your job you can still contribute to a ROTH or Traditional IRA up to $6,000 per year and $7,000 if age 50 plus (income thresholds apply).

 

If you are self employed you can contribute up to $56,000 ($62,000 if age 50 plus) by setting up a solo 401k  by December 31st of this year–and you can contribute up until April 15, 2020–the filing deadline!

 

Keep in mind your contributions cannot exceed your self-employment income for the year.

 

Or you can set up a SEP-IRA which is limited to 20% of your self-employment income up to a maximum contribution of $56,000.

 

You must always know about marginal tax rates which has been reduced for many, however “more of their income” such as pension and social security is now possibly taxable–thereby increasing the amount of taxes they owe even though they are paying a lower marginal tax rate.

 

What you really must be aware of is your effective tax rate  as that is the actual taxes that you will pay based on your unique filing position.

 

Always consider how tax moves at the “federal level” will affect your tax position at your “state and local level”–where applicable.

 

Your goal is to maximize your tax refund or minimize your tax liability in an overall (state and federal) manner–now–and in future tax years.

 

All the best toward your short and long term tax success…

 

 

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