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?
