How many times have you heard people grumble about taxes? Eventually, they get tired of simply complaining about how much money in taxes they have to pay and move on to how much money on taxes the rich DON’T have to pay. It can be frustrating, can’t it, knowing that people with less money get fewer breaks than people with loads of money? It’s frustrating because it isn’t fair. And if you happen to be one of the people on the low-income/high tax-percentage side, then you may experience some resentment.
Complaining of unfairness, though, changes nothing. The truth of the matter is that if you have money, you get to set the rules of the game to your advantage. If not, you’re basically out of luck. Our society has worked in this way for many years, and you’re fooling yourself if you expect it to change anytime soon. The rich will continue making more more and more money, going to fancy restaurants, and living in huge houses, as everyone else struggles to make ends meet. And what about the politicians in charge? They’re rich too, and many of them are pleased as punch to watch their wealthy buddies dodge their tax obligations.
That’s why you are going to have to take action. Don’t be one of the downtrodden masses. If you want more money, you are going to have to go get it yourself. And yes, you too can get more money in the form of tax breaks.
Robert Kiyosaki, author of the “Rich Dad, Poor Dad” books, makes the sensible suggestion that those who are not rich but would like to be should watch what the rich do, and then do the same. You don’t really need to watch too closely, however, to learn the open secret of the wealthy– that secret is real estate.
In his book “Cash Flow Quadrant,” Kiyosaki says “One of the reasons I chose to work predominantly in the B and I quadrants are the tax advantages,” The aforementioned “quadrant” is an invention of “Rich Dad,” a diagram consisting on a square divided into quarters, each representing the different ways in which different people relate to money. It’s an unavoidable fact that an individual’s personal philosophy and perspective on the world will affect the way in which he or she behaves with money, and this behavior will,, in turn, decide his or her ultimate financial success or failure.
In Robert Kiyosaki’s opinion, the most money is in the business and investment quadrants, largely because these quadrants allow individuals to take advantage of more tax breaks.
It’s best to take an “if you can’t beat ’em, join ’em,” attitude towards the wealthy– there’s no way you’re ever going to beat them, so the next best thing is to become one of them. Know also that the rich aren’t simply lucky; if you follow the examples set by rich people, you can become one of them, and you can get the tax breaks that they are able to get.
Here’s how. You become one of them by using investments to make your money multiply. You can do that while remaining also in the E and S quadrants, if you are well-paid, but Kiyosaki advises that you join the B quadrant, by building a business system that will essentially work on its own without much input from you. Then you can either keep it or sell it, but you must invest.
Investing, preferably in real estate– condos, rental property, land and the like– is your ticket to financial freedom.
Author: Alexandria P. AndersonThis author has published 2 articles so far.