Want to be $1,000 richer this Friday? Sure! Who wouldn’t? There are two ways to make that happen: make more money or pay less in expenses. If I stopped there, though, this would be the shortest blog post I’ve ever written.
This week we’re going to take a bit of a departure from taxes to talk about how to put more cash in your pocket.
If you pay less taxes, you’ll have more cash. That’s because taxes are probably one of your biggest expenses. When you cut your expenses, you definitely will put more money in your pocket. And if those expenses are after tax (not deductible), you’ll actually do better saving $1,000 then making $1,000. That’s because the $1,000 will be subject to taxes. If you want to find ways to pay less tax, then please scan the archived blog posts. You’ll find plenty of ideas.
How about ways to pay less in expenses? One of the best tricks I know is “Cashflow Sunday”. Every Sunday, my family comes up with a list of 10 things we can do during the next week to create cashflow. Some of the items will be ways to collect money. Others are ways to decrease expenses. Usually the expense items are easier to identify and put in place right away. But there is a limit to how much you can cut. On the other hand, there are very few limits to how much cash you can create.
If you don’t have a business, start one. If you have one, how are you doing at creating/ all three types of income: (1) active (2) leveraged and (3) passive?
We’ll be talking about all those ideas more this week in the blog posts.
For more information on building your Smart Business, check out Smart Business Stupid Business When you sign up for the Insider’s Club, you’ll save 10% on the book!
This book clearly, and almost informally, discusses choosing a partner, building business credit, selecting the right corporate structure and even explores business exit strategies. The style is refreshing in that it feels like they are talking directly to me. Every time I start, merge or acquire a company, I have to consider many of the things covered in this book, it is quite comprehensive. The content is primarily focused on building a business and has actually given me some ideas that I had not considered in running my own companies. Randy Thompson, Geneva, WI