Do I actually have a long-term financial goal?
in Economy ·
There is a fundamental distinction between taking actual productive steps and merely believing you are taking the right ones.
For instance, saving money—that’s a misguided move whether you’re stashing cash under a mattress or keeping it in a savings account at Chase.
What I mean is that even if you have a clear goal and you think you know what needs to be done, if you start by just hoarding cash, you're actually moving in the wrong direction; it proves you don't truly grasp the mechanics of building wealth.
First, you need to establish an LLC or a corporation so you can take advantage of sales tax credits. Sales tax is a great tool because you essentially hold onto government funds for a few months before passing them along to the IRS.
Second, you have to actually engage in some form of business activity to generate income. Once you do, you can write off all your expenses—phone bills, electricity, gas, and so on—directly through the company, which effectively shields those costs from taxes.
Third, I won't spoil all my secrets here; you really need to exercise a little creativity.
Ultimately, my point is that if you set up a business entity, your cost of living effectively drops by about 22%, which is far more efficient than simply saving pennies.
When you look at the survey results, keep in mind that most people have no idea if they are actually making progress or just spinning their wheels.
For instance, saving money—that’s a misguided move whether you’re stashing cash under a mattress or keeping it in a savings account at Chase.
What I mean is that even if you have a clear goal and you think you know what needs to be done, if you start by just hoarding cash, you're actually moving in the wrong direction; it proves you don't truly grasp the mechanics of building wealth.
First, you need to establish an LLC or a corporation so you can take advantage of sales tax credits. Sales tax is a great tool because you essentially hold onto government funds for a few months before passing them along to the IRS.
Second, you have to actually engage in some form of business activity to generate income. Once you do, you can write off all your expenses—phone bills, electricity, gas, and so on—directly through the company, which effectively shields those costs from taxes.
Third, I won't spoil all my secrets here; you really need to exercise a little creativity.
Ultimately, my point is that if you set up a business entity, your cost of living effectively drops by about 22%, which is far more efficient than simply saving pennies.
When you look at the survey results, keep in mind that most people have no idea if they are actually making progress or just spinning their wheels.