In his best selling book, “Rich Dad, Poor Dad, Robert Kiyosaki warns people against the dangers of buying what he calls “doodads” – you know, junk, spur of the moment items.
Tax Secrets of the Rich Found Here
Those things that you didn’t know we existed until you read about them in an in-flight shopping catalogue and know that you know about them, you just can’t live with out one. Many people have basements that are packed with electric pet feeders, remote controlled shoulder massagers, hardly used camping equipment, fishing poles, baby toys and clothes.
These are the every same items you see being sold at garage sales just a short time later, for about 5% of the original purchase price.
Some people take this to mean that the only way to become financially free is to stop spending money. That’s simply not true. The trick, however is to manage your spending by focusing on buying more assets (things that put money in your pocket) and less liabilities (things that take one out of your pocket).
But this begs the question: “What is the smartest way to pay for my fun?”
The first way is to make your fun tax deductible whenever possible.
Did you know that things like season tickets and tickets to concerts can be tax deductible?
Same thing with country club memberships?
Are you trying to get into shape for the summer?
You can deduct the cost of a personal trainer and your corporate gym.
Would you like to take the family on that terrific vacation they so deserve?
Make it part of your annual meeting and let Uncle Sam underwrite the cost.
How about new furniture, ski equipment or golf clubs? Would you like to learn to cook, fly or meditate?
Would you like to have your own swimming pool and health spa?
All of these things can be done with pre-tax dollars with a HUGE net savings to you.
All the Best,
Drew Miles, The Tax Saving Attorney.