There is a clear and distinct relation between debts and taxes which all entrepreneurs must know and understand the intricacies of it. This will make the road to become a rich entrepreneur smooth.
There is a lot of significance to take on ‘good’ debt and to be savvy with the tax codes and laws. It is crucial for the financial success of the business.
If you wonder how then this article will tell you how people having a debt of thousands of dollars pay little or nothing in taxes and sleep well at night.
These are the people who are pointed at for the economic inequality that exists in almost all countries across the globe.
Debt and taxes
These are the two most common words that keep people awake at night and cause a lot of anxiety. The simple reason behind this is the little or no knowledge amongst people, even those who are highly educated and earning in six or seven figures, about the basics of using debt beneficially.
They don’t know how to make money from it and the ways in which they can avoid paying taxes both ethically as well as legally.
You can use debt as a tool if you want to build a business and real estate. For this, you will need to know the real purpose of tax laws which is offer incentives to both investors as well as business owners. However, there is more to it.
Smart people who know how to make the most of the debt and taxes will become rich and the other people poor. The reason for such a paradox to exist is not the difference in the earning potential of the people which is usually believed.
It is ideally the social advantages between the rich and the poor as well as the career opportunities. There is a huge gap in financial education, and it all starts right when you are in a school where nothing is taught about money and taxes.
On the contrary, kids are pursued to get good grades so that they can get a good job and earn more. When they do, they are told to save money by availing plans such as 401 (k) and that is just about it all.
It is for such lack of knowledge and conventional approach that most of the people have to work hard all their life but still cannot afford to retire with getting government support such as Social Security.
Cash flow divide
Most people being born in middle-class families always feel they are poor. They struggle with their financial management and health even if they have top-level education and a Ph.D. and also hold a prestigious and high earning job.
The reason is simple. There is no knowledge about money and its effects and management. This ultimately results in a cash flow divide. Even the game of…
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