Millennial Money

MM036: Why You Want a SMALL Tax Refund

from Millennial Money | Published 1/27/2021

There's long been an incorrect belief among taxpayers that receiving a refund is a good thing. The problem with this belief is that you (the taxpayer) don’t have access to your own money throughout the year, making it harder to put your money to work for you. If you had more of your own money to spend throughout the year, what would you do with it? Pay off a larger portion of credit card or student loan debt? Would you put it aside to invest in a cash-flowing asset? The point is, instead of waiting until your refund arrives you could use the added income in each of your paychecks now to reduce your principal before interest has an opportunity to build on what you already owe. Plan for Next Year Since you’ll be keeping more of your own money this year, put that money to work for you! Here are three simple things to do now to lower your tax liability next year: Start an investment fund: A tax return is a perfect time to seed-fund your investment account. Spend some time deciding what you want to invest in paper assets, real estate, commodities, or business, and use your tax return as the initial funding for that investment activity. Start a side business: By setting up a side entity, you can realize significant tax benefits by writing off your expenses for the business. This means that if, for instance, you want to get into real estate investing, you can write off all expenses related to that activity-including travel, education, and more. Hire a CPA: A good CPA will be able to sit down and help you plan out the best way to maximize your investment fund and take advantage of your legal business entity. Here’s the secret about taxes that the rich have figured out—a small refund is a good thing. A tax refund isn’t the government giving you “free” money, they’re just giving you back what was yours in the first place. So the next time you hear someone complaining that they got a smaller refund, give them a high-five and tell them congratulations, you kept more of your own money! Read more about how to build massive wealth by lowering your taxes in Tom Wheelright's book: https://amzn.to/38BC8KJ​ #robertkiyosaki​ #richdadpoordad​ #financialeducation​ https://www.richdad.com/​ Facebook: @RobertKiyosaki https://www.facebook.com/RobertKiyosaki/​ Twitter: @TheRealKiyosaki https://twitter.com/theRealKiyosaki​ Instagram: @TheRealKiyosaki https://www.instagram.com/therealkiyo...​ If you would like to experience this episode in closed caption, it can be found here on the YouTube Rich Dad channel. Learn more about your ad choices. Visit megaphone.fm/adchoices

Om Podcasten

Want the TRUTH about money and just not the lies the media is selling you?Then join Rich Dad host Alexandra Gonzalez-Ganoza as she interviews the #1 personal finance author in the world, Robert Kiyosaki, as well as many of the world’s greatest thinkers about money, finance and the economy.Learn how these things apply to the entire generation of Millennials.You won’t hear the old advice of saving your money and getting a 401(k). Instead, you will get REAL advice from the most successful people who have REAL knowledge about the REAL way money can be made because they actually DO what they teach.If you want to take control of your future and you are tired of the same old advice, let Alexandra take you down the path to TRUE wealth, Let her take you to Rich Dad’s Millennial Money.