In his best-selling book, “Rich Dad Poor Dad, Robert Kiyosaki warns people about the dangers of buying what he calls” ornaments, “you know, junk, makeshift items.
Here are the tax secrets of the rich
Those things you didn’t know existed until you read them in an onboard shopping catalog and you know you know them, you just can’t live without one. Many people have basements full of electric pet feeders, remote control shoulder massagers, little-used camping equipment, fishing rods, toys, and baby clothes.
These are the same items you see being sold at garage sales shortly thereafter, for about 5% of the original purchase price.
Asset protection
Some people understand that this means that the only way to be financially free is to stop spending money. That is 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 fewer liabilities (things that take you out of your pocket).
But this begs the question, “What’s 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 concert tickets can be tax deductible?
The same goes for country club memberships?
Are you trying to get in 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 fantastic vacation that they so much deserve?
Make it part of your annual meeting and let Uncle Sam cover the cost.
Tax strategies
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 pool and spa?
No problem.
All of these things can be done with pre-tax dollars with HUGE net savings for you.
All the best,
Drew Miles, the tax savings attorney.