In today’s episode Laura asks the question of how and when is it worth or not to have a side hustle and avoid paying all those new taxes.
This is a great question, but I think the bigger question comes from within as to what do you want to accomplish with your side hustle or freelance work?
You see the reality is for most of us we just use money as a conduit for a means to an end. Either consumption, necessities or investment.
So I want to start this episode off with two things, one is, there, at least as of yet, no such thing as 100% tax. So no matter how much you make, you should have something left over.
Although we will have to see what the election cycle in November brings. If the wrong troops take over the legislative branch, those who plan on being in the 1% or even the top 10% could really be in for some serious tithing. Meaning taxes.
I am going to go off topic on this subject for a moment. I don’t care what you affiliation to politics is or are. And I don’t care who you vote for. But I can’t help but cringe when I hear people talk about how the rich or wealthy don’t pay their fair share.
I believe we all have the same opportunities. I am not saying we all have the same skillset or upbringing or people who live in the ghetto have the same access to schools and outcomes. All I am saying is we all have the same set of rules in which we can play the game. One thing, I know from experience is the game is not always fair, but it does have only one set of rules.
That said, the thing that makes cringe is that even in investments, just like in taxes. People get off the signal and only hear the noise of percentages! What do I mean by that? I mean that people think in terms of percentages instead of the sum in actual dollars.
And when you do that, in investment and hear somebody say I made a 100% on my investment or money. That doesn’t equate to a whole lot if you only invested $10.00 and now you have a 100% return on that investment or $20.00 dollars.
Or if your business in year one sold one lollipop and sales grew by a 100% in year two, selling just 2 lollipops.
And as I always tell people who don’t take chances a 100% of nothing is nothing, You get the point!
So when somebody says the rich don’t pay their fair share, next time instead of listening to the noise produced by the hype and the media. Ask how much is that percentage in dollars? A quick math equation of a millionaire earning a million dollars per year and only paying a tax rate of 20% is 200,000 dollars in volume paid out in real money to the IRS.
And a person who makes a 100k a year but paying a higher 35% tax bracket is paying actually $35,000 dollars in volume in taxes. So I pose the question or thought to you as to who is actually paying their fair share? Is the person paying in 200k dollars spreading more wealth through taxes or the person paying $35k the one? Sometimes you have to see through the white noise.
Remember, your perspective creates reality; it’s up to you to decide. I am only suggesting you listen always to signal and not noise in your discovery and path to wealth.
We’ve all heard that death and taxes are inevitable. Well, with all the biohacking and advances of technology in health, prolonged life may be soon a short reality, but taxes on the other hand are always inevitable depending on how you roll. With some tax planning, you can legally and ethically owe less money in taxes at the end of the year.
In the world of sustainable wealth we say, pigs love pals. And what that means is; pigs is an acronym for passive income generators and pals is an acronym for passive accumulative losses.
So let’s look at some ways to do just that, here are some steps you can take to reduce your taxable income and the taxes you will owe. These are basic tax-saving strategies that every taxpayer should know. Whether this income is from a side hustle or just plain income from your 9 to 5 or 9 to 9 job you have.
These strategies don’t involve offshore bank accounts or illegally laundering money through convoluted tax shelters. These tax planning devices are for you to understand and put to use, and are most likely to save you — the average taxpayer — more money.
Check out all the details of this episode to learn more.
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