Five Tips For Growing Your Wealth

The luckiest people in the world are those who were taught as children or learned early in life how to save money and make it grow into wealth. Working to obtain a wealth of money is one thing but knowing how to grow it into even larger amount is another. Someday, we will want to retire and live the good life instead of working until we die. We may even want to leave a financial legacy to our loved ones.

This does not happen magically. It doesn’t happen by living short-sighted. We must be forward thinkers. If you are already in your midlife then it is still not to late to create long lasting financial security for yourself and your loved ones. I’ve heard it said many times by jaded individuals, “It’s all going to turnout how it’s supposed to. (sigh)” That is a fatalist’s view. We can take our destiny into our own hands and plan for the life we want to live and someday leave to our family.

Let’s talk about five simple tips for growing your wealth that you can get started with right now.

1)  Create a budget

It seems the majority of people I talk to about finances fly by the seat of their pants. They don’t have a budget yet they wonder why they never have money when they need it. Bills will arrive and they seem surprised by the timing or the amount. They have no road map to financial success. Tip number one is to create a budget that allows for all expenses (yes, even for your Starbucks).

Don’t forget to allow for savings so that you can start investing to grow your wealth.

2)  Live on less than you make.

That’s right, you don’t have to spend everything you earn. Over spending is your worst enemy for growing wealth. You absolutely need a budget! The budget you create can have a little fun money allocated but it’s vital that at least 10% of your income be saved as an emergency fund. This 10% nest egg is money that you could put into a safe investment for the future.

Delayed gratification isn’t a very popular concept in these days of instant gratification. However, it is one of the most important of the tips for growing your wealth. When you are ready to retire and enjoy time free from work you will be glad that you had a disciplined plan for a successful retirement.

3)  Live Honestly – watch your credit

One of the five tips for growing wealth is to keep interest fees and  redit to a minimum. The best way to live life is honestly. If you can’t afford to pay for that new dress or suit now don’t charge it; or if you do use a now fee credit card and pay it off at the end of the month.

If you truly want to grow wealth it’s important to avoid paying unnecessary interest. Sometimes interest must be paid such as when buying a car or home however paying monthly interest because we’re living beyond our means is simply foolish.

4)  Pay off your car and home faster

This is just simple math. By making double the normal mortgage or car payments you can save thousands of dollars for these items. There isn’t a lot more to say about this. It’s just one of the smartest things you can do to avoid throwing money away.

5)  Start your own business

The tax benefits of owning your own business can save you a lot money every year. Even when you are only working the business part time you can write off part of your house payment, your utilities, computer and phone expenses. Many people do not understand how much money they can save by keeping track of their business expenses. Some of these deductions may depend on what kind of business it is that you are operating.  Another plus about having your own business is that you can use some the money to build up your investments. Yes, the benefits of being an entrepreneur are huge.

These five tips for growing your wealth can give you a happy, balanced kind of life from the time of your youth through your retirement years. If you need help getting started it’s a good idea to consult with your trusted accountant.

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Five Reasons for getting help with your tax

In this day and age many people are doing their own taxes with online software. It seems like a smart thing to do to save money. However, what may seem like a money saver could actually be costing us in the long run. As individuals we aren’t skilled in understanding the current tax laws, after all we have our own industry that we need to understand and specialise in. We don’t know how they can help or harm us. Ignorance is certainly not not bliss when it comes to our taxes.

Here are five reasons for getting help with your tax filing:

1)  Confusion and Anxiety

Most people experience anxiety when it comes to doing their own taxes. They’ve heard, like most of us, about the horror stories thatfollow an erroneous tax filing. There are people that receive a notice after five years that they owe back taxes plus interest. When dealing with these cases there is no statute of limitation for The Australian Taxation Office(ATO). These false claims can come back to haunt you years down the track. There are also situations in which it can get so confusing you are left wondering if it’s not costing you more in time than it would in money to get it done by a real accountant. The nervous stomach, the fear of not doing it right and the time involved just aren’t worth it.

2)  Understanding the tax laws

Professional accountants are well versed in all the tax laws, how and when to apply them. Many people that think there is a ‘one size fits all’ solution and may actually be paying too much over the course of the year. This is one of the great misunderstandings about tax returns. Many people think that it’s great to get a large tax return at the end of the year. What they don’t know is the reason they are getting money back is because they paid too much all year, money that could have been earning them interest in their bank account. It is vital to protect ourselves by working with a trusted professional accountant.

3)  Tax accountants are our friends not our enemies

Having a skilled tax accountant in our corner takes so much of the risk and mystery out of the tax process. None of us want to pay more taxes than we already do. We could be putting the money we save on tax payments into investments and creating personal wealth. Professional accountants can help us know how to defer some of our tax liability so we have more money to invest. Getting help with your tax will be the best decision you make all year.

4)  Effective Tax Planning

Accountants can guide you through the maze of investment opportunities currently available. They can present you with options that suityour personal situation and income. They can help you find the investment strategies that are the right risk level and will help you savemoney on your taxes each year. Money saved is money earned. Effective Tax Planning can empower each of us to have a financially stable future. Being aware of the current tax climate skilled accountants can see the dangers that may be lying in wait for our small businesses.

5)  Being Self-Employed is a Risky Business

The need for a skilled accountant is even more necessary for those entrepreneurial-minded individuals that have their own business. There are so many hats that a business owner must wear it is almost impossible to understand all the tax laws that can hurt or help the bottomline. It is worth the money spent to hire a capable accountant to make sure you not only get all your entitled to, but to protect you from straying into legal difficulties. A business audit from the Tax Office can quickly become a considerable consumer of both time and money.

What is the biggest question you should have when deciding whether or not to get help with your tax filing is: can we afford not to? The money spent hiring a specialist is saved as soon as they put that knowledge to work for you. Not to mention the peace of mind of knowing that there will be no nasty surprises in future years.

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