If you don't understand taxes, you'll never be truly wealthy.
Here are 11 tactics the rich use to legally pay less tax:
1. Employ Your Kids
Business owners listen up
If you have kids under 18, you can:
• Employ them
• Pay them $14,600/yr tax-free
• Deduct your kids' salary from your taxable income
When you employ your kid, that's a business expense
And business expenses are tax-deductible
Apr 3 • 22 tweets • 4 min read
I studied Finance for 11,923 hours so you don’t have to.
These are the 19 most important lessons I learned:
1. Pay Yourself First
Society tells you to:
- Spend
- Consume
Instead, use your paycheck to:
- Pay off credit debt
- Invest for your retirement
- Add to your emergency fund
- Add to your investment portfolio
Never live bigger than your paycheck.
Mar 28 • 9 tweets • 2 min read
If you don't know how to manage money, you'll never be truly wealthy.
Here are 5 money management methods everyone should know:
1. Budgeting
Budgets help you figure out where your money is going.
To create a budget, track every cent:
1. How you made it 2. How you spend it
Then categorize your spending as:
• Needs
• Wants
• Wishes
Spend on your needs and save/invest the rest.
Mar 21 • 24 tweets • 4 min read
If you want to make more money, you need to understand the language of money.
Here are 21 money-related terms you need to know:
(in plain English)
1. Net Worth
Your net worth is the total value of all your assets and debts.
You can have a net worth that’s:
- Negative
- 0
- Positive
The goal is to build a positive net worth by:
- Saving
- Investing
- Paying off debt
Net worth = Assets - Liabilities
Mar 20 • 10 tweets • 2 min read
I spent 7 years in finance and saw every financial mistake you can make.
Here are the 7 biggest financial mistakes to avoid if you want to get rich:
1. Late Fees
Imagine this:
Throwing money in the garbage and lighting it on fire.
That’s exactly what late fees do.
How do you stop paying late fees?
-> Automation.
Set your bill pay to auto-pay.
No more late fees.
Mar 12 • 10 tweets • 2 min read
If you only have 1 income stream, you'll never be truly wealthy.
Here are 7 income streams you can start building today:
1. Rental Income
Buy a property and convert it to a rental property.
Find the right renters and start collecting monthly passive income.
While you earn extra cash, your property will also likely appreciate in value.
Win-Win.
Mar 7 • 19 tweets • 3 min read
A Roth IRA is one of the most powerful wealth building tools.
But only 10% of Americans own one.
Here's what you need to know about the Roth IRA:
(and how a Roth IRA can make you a TAX-FREE millionaire)
In 2010, Max Levchin, the co-founder of PayPal & Yelp chairman, sold 3.1 million Yelp shares in his Roth IRA.
That was a ~$10.1 MILLION profit.
Normally, you have to pay taxes on your profit.
But Max won’t have to pay a penny.
Mar 6 • 10 tweets • 2 min read
I spent $60,593 on a Finance Degree so you don't have to.
Here are 7 Finance Rules everyone should know:
1. 50/30/20 Rule
Budget your income based on your:
• Needs (food, rent, etc.)
• Wants (vacations, new cars, etc.)
• Goals ( savings, extra debt payments, etc.)
Needs = 50% of income
Wants = 30% of income
Goals = 20% of income
Mar 5 • 17 tweets • 3 min read
The HSA is the ONLY triple tax-advantaged account.
But only 9.3% of Americans own one.
Here's everything you need to know about the HSA:
(And why you should have one)
What are HSAs?
HSAs are Health Savings Accounts.
You save money in HSAs for future medical expenses.
And they are the ONLY triple tax-advantaged account.
But before you just “get” an HSA, you need to qualify for one.
Here’s how you qualify for an HSA:
Feb 29 • 25 tweets • 5 min read
I spent 11,923 hours studying Finance.
Wild.
Here are 21 Finance Terms everyone should know:
1. Net Worth
Your net worth is the total value of all your assets and debts.
You can have a net worth that’s:
- Negative
- 0
- Positive
The goal is to build a positive net worth by:
- Saving
- Investing
- Paying off debt
Net worth = Assets - Liabilities
Feb 27 • 23 tweets • 4 min read
If you don't understand taxes, you'll never be truly wealthy.
Here are 11 tactics the rich use to legally pay less tax:
(and how you can apply them too)
1. Employ Your Kids
Business owners listen up
If you have kids under 18, you can:
• Employ them
• Pay them $14,600/yr tax-free
• Deduct your kids' salary from your taxable income
When you employ your kid, that's a business expense
And business expenses are tax-deductible
Feb 22 • 10 tweets • 2 min read
Money truth:
Your partner is your biggest financial decision.
7 other money truths:
1. Your network is your net worth
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