This year I have been to so many meet ups and spoken in front of different groups of women and men and in every session we always ask what is your word for 2020? I hear a lot of intentional, Focus, one thing or other very similar and related words.
I’m not quite sure what everybody is deciding that they want to be focused on or they want to be intentional about, but if you ask me everybody is looking to create freedom or the ability to do whatever they want. Reason I think this is because people want to focus on being strong or succeeding one thing to be able to see massive results in that area. Most of the people I hang around the business professionals so the thing that they’re focused on is being massively successful or CMS a change in there were production or more importantly Their income. One thing I’ve learned that everything in life is if you follow the money you will see where peoples actions will go. Follow me here…
So imagine right now that you are somebody who is an engineer, is a medical doctor, is a executive in a company, you are the top sales rep at your medical device company, you are a successful lawyer, you are a dentist to own your own practice you are a fund manager, you are a house flipper does it on large-scale, you are a homebuilder, or any successful individual who owned her own business and is self-employed. You have to show up every single day and do some sort of action every single day to be able to make money. This is called active income and this is the type of income the large, the government taxes you’ve the most on. Even if you drop everything that you’re passionate about and completely focused for 2020 on rating massive income in what you specialize in the government will still take its chunk of what you make. I’m really not a fan of working my butt off have somebody clean the right to the income that I made. All this time you have been trading time for money almost like an employee. The trade-off of time versus money is much greater in these professions for example instead of making $15 an hour you’re making 500 or $2000 an hour but still depending on your tax bracket the government is still going to take say 30% of your income. Think about it this way that means 30% of the time that you were working to create that income and for using your focus and your energy was literally wasted. If you could structure your time where instead of giving away 30% of your time you could instead use that 30% to give yourself time back and continue making income at the same time wouldn’t you opt to do that? As I’m reading over and over get it isn’t how much money you make it’s how much you keep. So I want to challenge you instead of to focus on doing one thing in your career all day long or specializing in one thing so that all the money comes to that thing I want you to focus on how much of your income you are keeping. Think about it this way if you made $100,000 and it was totally tax free you keep the hundred thousand dollars to make $100,000 dollars and you’re in a high tax bracket you’re only going to keep $70,000. And that is before expenses. One of the easiest ways that you can start today to save yourself taxes on earned income is by instead of making earned income start make passive income. K-1 income saves you a massive amount of taxes and guess what it’s easy as hell because you’re not showing up everyday earning if you have made any kind of decent income in your career you need to be leveraging that to multiply that income while you sleep or while you vacation or while you have your family or while you pursue whatever it is that your passion in life is. It makes me really sad that people want to waste 30% of their lives their entire lives up to 30 years of their lives literally wasting their time. If you’re like me my focus is on pursuing what matters to me which right now is making everyday count like it’s your last. Now if I’m forced to spend 30% of my life working just like compared to government I’m knocking to be able to be at the hospital for my grandma, or be at my kids recital, or be able to chase butterflies in the field, backpack to the mountains, take a week or two off for vacation because I’m exhausted, or whatever it is that you want to do.
Whenever you choose to make passive income, even when there is a capital gain event (govt wants their check here from your hard work) like a sale of an investment, you still even get the benefit of being taxed at the lower capital gains rate which is less still than earned income.
Now if you’re invested passively in the stock market via govt sponsored investment accounts like a Roth IRA or 401(k) you do not get the benefit from the lower capital gains tax rate (you can only benefit from this if your gains are coming from real property) but you can benefit from a 1031 “like kind exchange” to defer capital gains taxes…. But this only increases your net worth for the value of your investment and continues to circulate your money. This does not allow you to withdraw your game to be able to use those for whatever you see fit. When you invest in real property you get to not only 1031 exchange or like kind exchange your games but if you choose instead to cash out your tax at the lower capital gains rate. There are also ways around this capital capital gains event tax by rolling your government sponsored savings accounts into self-directed accounts. Ask me how I know. There are many other ways that passive income can also help you to offset your other active income or your spouses active income we’ll have to have an event on this. I want everybody reading this to start thinking about focusing their energy on creating passive income. The faster and younger you can do this the more freedom of time you’ll have and the more money you will make over your lifetime. As in the Rich dad poor dad’s series they discuss everything you own is either an asset or a liability. If it is making you cash flow (not trading time for money) it is an asset if it is not creating cash flow it is a liability. So try To think about your car your home your expensesIs I an acid or is it a liability? There’re certain expenses we have to have’s and kids sports etc. But if you can offset those with assets that cash flow and you could live net zero meaning you’re not in debt but everything that you need is completely paid for and you don’t owe taxes wouldn’t you be happy?
Think about it and really try to simplify your life.
This is the kind of crap that they teach you for the government wants you to subscribe to is that-Any excess income should be put away into accounts which will compound annualized into large accounts to take care of all expenses when we end up not having our tax deductions when you retire.
Or guess what everything you own the cash flows you can retire whenever you want you stain a low tax bracket because you have passive not earned income and you don’t have to work. Let us teach you how to make passive income today you can retire when you want and pursue the things are important you. I have a monthly meet up in Dallas Texas where we discuss opportunities for free passive cashflow.
And coming soon I will be starting a woman only fund, the first of its kind in the entire world to help women become investors, make passive income, do it they won’t with her time, create independence. If you have a wife, sister, daughter, anyone in your life is a woman that you care about the need to be involved in Ness.