How much money is left in your pocket at the end of the day, the end of the month or year-end? Remember the game Monopoly? Money is a game in real life, a game that you should be skilled at. Whether you’re an employee or business owner/entrepreneur, and regardless which country you live in, at the end of the day it’s your choice where you plant your flag, so it is imperative that you have your own personal compensation plan because the new economy is proving that you cannot rely on anyone else but yourself.
One of the most important things in your life is to study your country’s comp plan (aka taxes and the government) because that is in direct correlation with your personal comp plan and your financial success. If things aren’t changing on the horizon and you’re upset with the government, or with the economy doing what it does best – it goes up and it goes down, which is the typical business cycle, so if you find yourself losing to it, it may be time for you to make some major adjustments and make a move – literally.
Why does the comp plan in North America do so well? The tax structure benefits business owners. Why? Because business owners create jobs. Many 9 – 5ers have complained that the government favors business owners. Absolutely, they do! If you were a business owner creating jobs then, of course, the government would give you a tax benefit – it’s an incredible incentive for being a business owner. If you want this benefit then you need to become a business owner/entrepreneur because it benefits you in your ‘comp plan’ and positions yourself for leverage. Leveraging your time and finances is the only way that it will bring you to financial freedom.
Having a home-based business should be a part of your financial plan to offset and maximize your taxes. With a home-based business, even if you worked it very part-time you’ll get the benefits that your employer gets from you. And if you don’t already travel, or dine out, or have a mortgage/car payment, or entertain people then you can start doing so knowing that you can write many other day to day expenses off for your business. The new economy is not about working harder and longer hours, it’s about working smarter. Just because you work more hours doesn’t mean you’re making headway, for most that means no life and you’ll even get taxed higher for earning more as an employee. Use this free and easy to use tax calculator to see how much you could be saving or getting back from the tax man: Tax Calculator