Author: Marco

The internet is full of articles detailing how to save on taxes. However, it is just as important for you to be aware of why you should pay as little as possible to the tax authorities. Do you find that annoying? Sorry, if you don’t, you run the risk of either paying your wealth unnecessarily to the state or spending it on things that only have short-term value. It is therefore advisable to link the tax savings with a mindset that helps you with a defined goal. As a saver with a goal, you are both more ambitious and more consistent in what you undertake.

The mindset does it

The best goal for you when it comes to money is financial freedom. This thesis does not convince you? Think about the compromises you make in your life. Compromises you would gladly do without. Do you perhaps have a landlord who is stressing you out? As a homeowner, you could chill out and leave it behind. Is your boss multiple neurotic and takes it out on you and your colleagues? As a company founder, you could do without him and do your own thing. You won’t achieve a life without compromises, but with money well spent you avoid those that eat into your substance.

Save taxes with a system

Taxes are incurred in both private and professional life. The first measure is to determine the current overload. Deal with the topic, let yourself be advised by a specialist. After the analysis, you have a list of savings methods that you missed. In professional life as an employee, you may not have stated all income-related expenses because collecting receipts is not your priority A in the scarce free time. In your business, you may pay a tax rate to the German tax office, although your company headquarters could just as well be abroad and you would save as a result. You could at least partially invest stock and fund transactions in such a way that less tax is incurred. A part would be well invested in a pension insurance that covers the final phase of your financial freedom.

Add up the money you spend needlessly on taxes every year. Then you think about how to invest the money in projects that free you from compromise. How long would it take to free up enough capital to buy a house or start a business? Or fulfill a wish like a trip around the world?

When you look at the total amount, you can think of many options for what you could do with the money. So sort the options by priority. Anything below “A” is not worth the effort. Concentrate on the most important things and do it consistently.

Taxes in the business world

In an industry with cost pressures, circumstances force you to save on taxes. At some point, all costs are calculated as low as possible. From this point it is important to do everything that the competitor is also doing. Keep that in mind as you look for new ways not to fall behind in the race for cost leadership. If you are planning to enter such an industry as a founder, the topic of taxes is part of the conception phase. Ultimately, the earning potential is nowhere as good as in self-employment, but financial freedom only comes from the sum of many right decisions.

Conclusion

On the way to financial freedom you have to take many steps. Saving on taxes is one of the most important things if you realize how much savings potential there is over the years and how much independence you can gain with it. Take the first step and find out with expert help how many euros of investment capital you could release annually. Do you want to reproach yourself later for not setting the right course in time?

As a financial realist, it’s healthy to have dreams. You see it that way too, don’t you? Dream of financial independence. Imagine chilled moments under palm trees. Enjoy the prospect of international entrepreneurship. However, there is one thing you shouldn’t do – approach the company haphazardly.

A solid strategy for your dreams will help you realize what is possible. A well-founded specialist knowledge allows you to become more prosperous step by step and to tackle big goals. For financial realists like you who only keep your dreams in a drawer until the right moment, here is a tip on how to do it practically.

Overcome inertia

Harry Donald Schultz’s flag theory is based on a principle. She recommends that you settle where you can do best. This theory splits well-being into different aspects. You separate business, private and financial matters if they help to turn your wishes into account balances. In order to be successful, you break some habits and research your options until your knowledge is sufficient.

Understand the approach

The 3-flag theory owes its full name to Mr. Schultz’s pictorial recommendation of locating work and financial investment and residence where most useful, even if that requires a division of countries. In practice, this is easy to do for people who work from anywhere – the digital laptop nomads on the beach in Mexico provide the right picture. These workers already separate residence and place of work because they often work for their country of origin from abroad. However, these nomads often follow our approach inconsistently. Many work for Peanuts, build little and are content with a period of felt freedom under palm trees until they return to Germany.

We want to show you how you can plan to save taxes and work out freedom on the route. Let others set off in an uncomfortable mobile home after their high school diploma or bachelor’s degree. Wouldn’t you prefer to stay in a hotel with a nice atmosphere?

persistence comes first

The success of the flag theory can be perfectly explained with a psychological experiment. Psychologists increasingly reward children for their willingness to wait for rewards. Long-term observation clearly showed that the children with the greatest patience achieved more and enjoyed more satisfaction in life. That’s why you use the flag theory with smart patience. Great freedom only comes when you have enough in your bank account. This will need time.

Build your strategy slowly. First you analyze where you work, live and invest money. Then you think about what it brings you and what it costs you. Maybe you live near Switzerland and would have the opportunity to earn good money as a cross-border commuter in the neighboring country with the strong currency and make a better living from it in Germany than you do now. The price for this would probably be more commuting time than now. Make reflections without taboos. Only when you have broken down the pros and cons in your Excel spreadsheet do you make a decision.

Are you planning to start a company? Then find out more about the tax rates. There are some countries that are cheaper than Germany and still allow you to earn money in your home country. This requires solid advice, preferably from specialized consultants. Deal intensively with the specific opportunities that Malta, the US state of Delaware and various off-shore havens offer.

The same principle applies to the investment of your finances. Invest where it costs you little and brings you a lot. A US bank might make you an irresistible offer. Find out beforehand about important issues such as deposit insurance so that you can calculate your risk. You should build the foundation for your financial freedom with little risk, you approach the desire for the return with a little more daring. In this way, the achievement of goals remains realistic.

taxes and freedom

Find the right way for you to save taxes and achieve strategic financial freedom. Bring patience. Open yourself to international opportunities. Spread your risks. Then you will see how the flag theory works for you in the long run. What are you waiting for?