Yesterday we learned that 74% of all wealth is created by people who own their own business. Below are a few facts about owning your own business, specifically a home-based business that you may not be aware of.
Fact: The fastest growing segment is home-based businesses.
Fact: A new home-based business is started every 11 seconds.
Fact: Unlike traditional business start-ups, 95% of home-based businesses succeed in their first year.
Fact: 85% are still doing well after 3 years.
Fact: People who own a home based business have an annual average income of $50,250, more than double the average American wage.
Fact: Owning a home-based business is the best tax strategy in existence today!
Today we will overcome the two roadblocks most people run into when attempting to start a business. Then show you how to fund a new business and put money in your pocket this month!
The two reasons people never get their own business off the ground, are FEAR, and lack of capital.
FEAR.
First lets address the fear issues. Most people used to believe that working for a major corporation was a safe place to earn a living. In recent years, as downsizing, massive layoffs, and total disregard for employees, has become the way of life in major corporations, the perception has changed. Most people realize that they have no real security working for someone else and, if you don’t own your own business, you always follow the same rules.
Rule #1: He who owns the company makes all the rules.
Rule #2: If you don’t agree with the owners decisions, see Rule #1.
Still, employees routinely sell themselves to a company at far less than they are worth in the name of security. Your employer tells you how much you can make, when to come to work, how long to work, when or if you can take time off, and most employees soon find themselves in a trap.
They don’t earn enough income to provide the things they want out of life, so they begin to use leverage in the form of credit to acquire the things they cant afford. Soon they make just enough income to service the debt and monthly bills, and are now trapped in their job. Even small increases in wages are soon offset by additional purchases and all the while the interest on their debts, eats their income up at alarming rates.
At this point employees ride a fine line between maintaining their debt service and total financial collapse, AND they have no control over their income. The employer or company can, and routinely does, layoff, right size, downsize or FIRE (the old fashion word for it) the employees.
What would a 90 day job search do to your present financial condition? Could you get by with ZERO income for the next 90 days? What if on the other hand you had a business started that created passive monthly income larger than your monthly bills. Would your loss of income matter? Absolutely not!
The fact is that the only real security is creating and controlling your own source of income, and the smartest time to begin creating your own income is before you need it!
As it turns out, not only is starting and running your own business the predominant way to create wealth, it’s also much safer than depending on outside forces for your income.
The other common fear people have when starting a business is lack of expert knowledge. Most average people do not have a tax advisor, financial planner, or attorney on call, to advise them when they run into challenges. At the end of today’s lesson we will show you how you can have a live tax advisor, and attorney, on call, every day, to asset you with any expert advice, for less than the price of a cup of Starbucks coffee! For now, relax in the knowledge that inexpensive help will be available to you for your new business.
Lack Of capital.
What is your number one expense? Is it your mortgage, your car payment, educational bills, credit card payments or loan payments? NO! Your number one expense is, TAXES! Federal Income Tax is typically the #1 expense for every U.S. household earning over $25,000 annually.
If you take a look at your regular paycheck you will notice the dramatic difference between your Gross Income and your Net Income. The difference is your largest expense, taxes. What’s even worse, if you are a regular employee, you are paying the highest percentage of taxes with the fewest deductions of any category of taxpayer. Haven’t we always heard that wealthy people pay less in taxes as a percentage, than the poor and middle class. Well sadly it’s true. The wealthy have the expert knowledge available to them, to reduce their number expense, taxes. Starting today you too, will have that knowledge.
Wealthy people realize that buy owning and running a business they can actually reduce, or eliminate in some cases, a major portion of their taxes.
It gets even better, did you know that just by starting a business with the intent to make a profit you can actually put cash in your pocket! Cash that can be used to fund your new business venture without having to borrow money or take any risk. The U.S. government will actually help you fund your new business, by increasing your eligible deductions. You can then translate that into immediate, monthly, take-home pay!
So how can starting a business put cash in your pocket today?
Take a look at one of your recent pay stubs from your last payroll check from your current employer (assuming you are working for an employer). Look at the difference between the Gross amount, and the NET amount. The majority of these taxes are federal and FICA withholding taxes. Have you ever stopped to think about just what’s going on here? In effect you are loaning the US government money by pre-paying a portion of the estimated taxes you will owe at the end of the year. Taxes in the U.S. are due on April 15th of the following year. So lets say you pay your estimated taxes for January of this year. You have just paid the government 16 months in advance of the date the taxes are owed. You are paying your taxes “as earned” instead of at the end of the tax period. The system is set up “as earned” for several reasons primarily to make sure Uncle Sam get his money first before your even allowed to cash your check!
The #1 Financial Strategy in America today is to start a home based business. By implementing a new home based business, you will be able to take advantage of the many tremendous tax deductions now available to you as a 21st century entrepreneur.
These new tax deductions can allow you to cash flow your business with up to several hundred dollars a month, from the very first day you start. That’s right, by starting and operating a home based business “with an intention for a profit”, you can legally convert a portion of your current, non-deductible personal expenses into new deductible business expenses. These deductions will then carry over to your individual 1040 tax return at the end of the year. This could lower your taxable income by thousands of dollars and quite possibly even lower your tax bracket.
Because you may owe less at the end of the tax year, you can adjust your W4 withholding form, and change the “as earned” withholding to properly account for the new deductions. This reduces the amount of taxes taken out on each check. Translation…. MORE CASH IN YOUR POCKET, THIS MONTH!
Here comes that fear again!
When most people think about dealing with taxes and specifically the U.S. government they get gun-shy. Most people will tell you imagined horror stories of the audits that will surely happen if you fool with your taxes. Nothing could be more distorted than the irrational fear of the IRS.
The bottom line is, it’s your money! And you should take advantage of every Legal deduction possible! Just by doing so you can immediately increase your monthly income, and use that money to start and run your new business!
To learn more about the complete financial fitness system, click here Wealth Building | Debt Reduction | Affiliate Marketing | Home Business or visit us at http://www.financially-fit.net