Forming Your Personal Tax Strategy

What is a Personal Tax Strategy? Let's break this term down and start with strategy. A strategy is a systematic plan of action intended to accomplish a specific goal or purpose.

The formula looks like this:

"Personal Tax" + "Strategy" = a plan of action to permanently reduce your taxes.

Of course, most people are all for permanently reducing their taxes. What is typically missing in their quest to do that is the strategy piece. And it's the strategy piece that produces the maximum results.

The strategy piece helps focus our actions and thoughts every single day on permanently reducing taxes. Don't worry! It doesn't have to take hours every day to get maximum results from your personal tax strategy. Instead, your strategy becomes a part of your daily routine.

Remember that every transaction you do can have an impact on your taxes. Your tax strategy helps you think about your daily transactions in a way that gets you to your goal of permanently reducing your taxes.

Where Do You Start? Think about planning a vacation. Let's say you are going to Hawaii. When you go to book your ticket, you need to know where you are departing from, right? This is your starting point. It is impossible for you to get to Hawaii unless you know where you are starting.

The same applies to a personal tax strategy. You must know where you are starting. In your personal tax strategy, this means you must know your current financial position.

Your current financial position includes:

Your Current Balance Sheet Your current balance sheet tells you your current net worth. It's calculated as follows:

Your Assets - Your Liabilities = Your Net Worth

When you know your current net worth, you know the exact resources you are starting with. This has a huge impact on how you will get to your ultimate goal.

Your Current Statement of Cash Flows Your current statement of cash flows tells you your net cash flow. It's 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 increase your net worth.

How Does Your Current Financial Position Relate to Your Personal Tax Strategy? If you are like most, the single biggest expense draining your cash flow is your taxes.

If you can reduce your taxes, then you immediately increase your cash flow. Increased cash flow can be used to create even more wealth. Your taxes have a huge impact on your wealth!

The balance sheet and statement of cash flows are a major part of any personal tax strategy. In fact, this is part of the homework I assign to my teleseminar course participants and we work through it together as part of the course. I've even had one past participant share that this was the most eye opening part of the course!

Behind Every Secret Remember, behind every one of my secrets is knowledge - the type of knowledge that makes you aware of what creates massive tax savings so you begin to see your daily routine a little differently...like how to leverage your tax savings to create more wealth!


------

Let's break this term down and start with strategy. A strategy is a systematic plan of action intended to accomplish a specific goal or purpose.
http://www.provisionwealth.com