Tax Strategy
- Often we think in order to have more money; we need to make more money. Yes that is true in some way however if not carefully planned properly all this extra hard work just might end up in taxes. The more your salary is, the larger your tax percentage is.
- Another method is to better manage your money and keep what you already got. For example the latte factor. Cut one latte or coffee daily and take that money and put it aside. Being conservative, let’s say $2 a day per month, that’s $62, that’s about roughly $750 per year that you can put in any investments. (I’m not a financial planner so seek professional advice to know where and how to invest your hard earn money).
- Now that’s an easy and obvious way to do it, you simply manage your money better
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However when you are in business, you have a different tax scale, I like to call it the “preferential tax scale” because you have access to claim your deductions as business expenses, therefore lowering your salary therefore paying lower percentages in tax. (Talk to your accountant regarding business deduction and he can elaborate on the subject.)
