What is a personal tax strategy? Let's break that term and start the strategy. Financial strategy is a systematic plan of action designed to achieve certain goals or objectives. The formula looks like this:-
Image Source: Google
"Personal taxes" + "Strategy" = a plan of action to reduce your taxes permanently.
Of course, most people support lowering their taxes all the time. What they usually lack in their quests is the strategic part. And this is the strategic part that gives maximum results.
This strategy helps us align our actions and thoughts with sustainable tax cuts every day. Keep in mind that each of your transactions can affect your taxes. Your tax strategy will help you rethink your daily transactions in such a way that you achieve your goal of permanent tax deductions.
Your current financial position includes:- Your current balance sheet shows your current net worth. It is calculated as follows:-
Your assets – your liabilities = your assets
Your current cash flow statement gives you information about your net cash flow. It is calculated as follows:-
Your Income – Your Expenses = Your Net Cash Flow
Your net cash flow plays a huge role in your ability to create wealth faster than you thought possible and to grow your net worth. How does your financial situation relate to your personal tax strategy? While you are like most of them, your taxes are the biggest problem draining your cash flow.
If you can cut your taxes, you will instantly increase your cash flow. Increased cash flow can be used to create more wealth. Your taxes have a huge impact on your wealth!