How I Stole 2 Million!
TWO MILLION DOLLARS!!
Did you know that the median income in the US is about $50,000 dollars a year. If you worked for 40 years that is 2 million dollars that will pass through your hands.
So… Who stole your money? It’s not what you make but what you keep that is important! Take a look at your pay check and review the deductions. Whats missing between your gross and your net? 15%, 30%, or even higher!
What can You do about it? When you purchase a home the property taxes and mortgage interest are tax deductable. You make $50,000 minus $12,000 (int & tax) = $38,000 that you now pay income taxes on instead of $50,000.
I want my money NOW? It’s great to get a tax refund but in reality a refund is nothing more than a loan of your money to the IRS for free. Remember that W4 form you filled out when you started your job. Update it with your current info and you will lower your withholding taxes and get a bigger net pay check.
What to do with your new wealth? Put it to work. Invest in You! Most people work for their money, wealthy people make their money work for them. Look at your debt, 12% credit card, 6% car loan. Paying ahead on revolving and installment debt is like investing at that interest rate!
Pay yourself first! 401K and IRA’s will not only build wealth but you get another tax deduction. Also consider a Roth IRA where you use after tax money to invest upfront but at the end it’s all tax free!
Who else is taking your Money? Do a budget audit. Yes you have a budget, it’s what you spend your money on. Know where your money goes. Track it for a week or better for a month. $5 in debit fees, $125 fast food, $30 morning coffee, $250 dinners out, newspapers, magazines, your food shopping. You decide if your getting your monies worth for the small things and habits that we all fall into. Review and update any insurance, car, life, disability and any other policies you may have and look for lazy dollars!
Life is like a hole in your pocket that the change keeps falling out. Fix the hole and a few adjustments on spending as well as watching the back door with taxes and looking for opportunities to make your money work just a little harder will keep everyone else from stealing your millions!
By Bill Frantz www.PaFhaMortgage.com