It doesn’t have to be overwhelming for small business owners and the self-employed with side gigs to manage their wealth-building. It takes putting three simple concepts to work with corresponding plans of action to ensure you have what you need for retirement and other personal financial goals.
Many well-intentioned people think they are following sound financial advice when in reality, they’ve bought into some dangerous money management myths. This can lead to real financial trouble. If this sounds eerily familiar, then keep calm and read on. Here are some of the most common myths.
Debt has become more the rule than the exception in the financial lives of most Americans. The best financial advice anyone can offer, however, is to free yourself from a seemingly endless cycle of debt accumulation and repayment. Debt can hinder other financial goals and get in the way of investing in your future.
An essential part of financial planning begins with ascertaining your resources, debt, and dreams for life, which is the basis for financial goal setting. The best advice for setting long-range financial goals is to start early to have the most time to achieve them. But what about short and mid-range goals?
Even though we don’t like to talk about it, our finances and money management habits are a primary way to ensure economic security - or the lack of it - for ourselves, our families, and retirement. Let’s look at the time-honored practices of good money management and how to use them effectively to create a bright and comfortable financial future.
Ben Franklin said, “A penny saved is a penny earned.” Translated: use smart tax planning to help build wealth. In even more straightforward terms, the more you control and limit the amount of taxes you pay, the more resources you’ll have in the future for your life and your family’s. Keeping what you earn to the best of your ability will help you save income, grow investments and ultimately build wealth.
The clients that I see who are investing in real estate - landlords, property owners, and investors - are building future wealth with assets. Your real estate is a business for tax purposes and may allow you to take advantage of a lot of the tax deductions available to businesses. Investing in real estate is a solid way to build wealth as long as you have a clear business plan and an efficient tax strategy.