Make More Money Right Now by Avoiding These Revenue Drainage Sinkholes
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Here’s some serious important good news for entrepreneurs: You are wealthier than you think.
There are ways to make significant advances to your bottom line growth with some simple steps.
You've already generated this income, but until now, you've let stacks of it escape out the door, unchallenged
Credit scores.
"I don’t monitor my credit score at least semi-annually and take proactive steps to raise it – and I assume there are no “errors” on the reports.'' An error on a credit report significantly lowering the innocent person’s credit score, sometimes by as much as 50 points.
So even if you’ve always paid your bills on time, your credit score could be costing you thousands of dollars annually just because of unjust errors.
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Raising your score by as few as 50 to 100 points (which is faster and easier than you may think), can help you refinance debt to lower interest rates, reduce many insurance premiums and possibly even save you thousands in closing costs when buying a home.
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Not all expenses / debts are equal.
"I don’t distinguish between expenses debts that are productive, consumptive and destructive.''
“Expense / debt” is a word that gives most people a negative feeling. We’re taught to avoid expenses. But this naive attitude won’t grow your business and it won’t enhance your life. You can use debt to acquire valuable assets that can put money back in your pockets. Or you can use debt to purchase liabilities that take away, take out money in your pocket. Life in general is a choice. Choose to be poor by purchasing liabilities before assets; or choose to be rich by purchasing assets before liabilities.
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Productive expenses or rainmaking expenses, however, are how you make money. Spending more money on the right employee, the right equipment, the right marketing campaign or the right mastermind group can pay for itself over and over again.
If spending $10 on a productive expense makes you $20, 30, 40,50, then you shouldn’t stop spending until that well runs dry.
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Investment advisores.
The retirement planner’s #1 interest, because of the way they get paid, is to get your assets under management and keep them there. They’ll always tell you to keep funding your retirement accounts, even when a bigger picture of your finances suggests otherwise.
If you’re paying higher interest on a loan than the interest you’re earning on an investment, the wise move is to pay off the loan before adding any more money to the investment. It may even be wise to completely cash out the investment to pay off the loan.
The financial advisore rarely looks at the big picture. They will always ask for more cash.putting them in underperforming investments that you don’t know or understand, that don’t provide cash flow today and that harm your ability to be more productive
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Taxes. This is a very big subject in America because it can break you or it can make you...
"I meet about 4 times a year with my accountant / tax preparer.''
A very large percentage of business owners are overpaying on their taxes, and the number one culprit is not being proactive about meeting with their tax preparers. January to April, when most people visit their accountant. If you meet with your tax preparer between mid-April and December, it’s easier to get better service. They can make sure you’re taking all of your deductions and maximizing your savings.
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The structure Of Your Business Must Be Solid And Properly Arranged.
"I have not reviewed my business structure (LLC, S Corp, Unincorporated, LLP, INC, C. etc.), with a qualified legal advisor and a very good CPA
Far too often business owners don’t incorporate because they think it’s too complicated which is not exactly true. But by not incorporating, you’re exposing yourself to more liability and could end up overpaying on your taxes.
The truth is, corporate structure can be outside the expertise of your tax accountant. So you’ll want to meet with a legal professional who specifically understands corporate structures at least once every year for proper advice and to make sure you’re getting all the savings and tax deductions you can.
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Business loans.
Outstanding business loans.''
Many (if not most) entrepreneurs spill away profits on poorly structured loans and repayment strategies more than on any other oversight.
Entrepreneurs should choreograph loans in a way that reduces the cost of borrowing, to free up cash for better uses, to save on taxes and to flip what most people perceive as a liability into a productive asset.
This is especially true if you took out any loans when you had less cash flow, a lower credit score or inadequate collateral. By restructuring these loans, you can save a lot of money. Or sometimes you can even consolidate loans to lower your interest rate, lower your minimum payments and thus increase your cash flow.
7. Personal loans.
When you have multiple assets each with their own loan, the interest rates you’re paying will vary based on the asset class.
By refinancing and combining loans, many times you can lower those interest rates. And many times you can also lengthen the term of the loan, which lowers your monthly payment and increases your monthly cash flow.
Then another bonus comes when you take a loan where the interest is not tax-deductible, and refinance it into a loan that is tax-deductible like a mortgage. This way even the government is supporting you in paying off your loan.
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Investments
"I have money riding on investments that I am not specifically trained to manage, including stocks, mutual funds, or income real estate.''
If you don’t know how you’re earning interest, then who is truly managing your money, and how do you know they’re not just selling you investments that make them a commission? If you don’t know what the fees are, how the investment benefits you now and in the future, what the exit strategy is, or how it can turn into cash flow, then it’s a lot more like gambling than investing.
The best way to invest is to leverage your instincts by staying closer to home with your money. That means only invest in what you know, because everything else involves too much risk.
Invest In What You Understand The Most
You see, risk isn’t in the investment, it’s in the investor and how they relate to the investment. For some people real estate is a good investment, and for some people it’s absolutely atrocious. A small number of people understand the stock market clearly, and that can be a great place for them to invest their money. But for most business owners, the thing they understand best is their business, which makes it the best place to invest.
= 401k plans.
Contribute in your 401k's employer if not you are giving money away to your employer which is richer than you. Even if most people contribute to a 401(k) to grow their savings tax free, but it may end up costing you more money than you save.
Yes, you save on taxes today, but you’ll have to pay taxes when you withdraw the money. All signs indicate that taxes are going up, not down. If you hate paying taxes today, you’re probably going to hate paying in the future. 401k's is a cow but not a sacred one. It is an investment you have no control over. But still it's better to have than not having it.
401k's you’re not the owner but only the beneficiary of your 401(k), the government can change the rules at any time, you can’t get to the money until 59 1/2, without paying penalty and the fees are typically much higher than most investments out there because you’ve added complexity and layers of administration and legal fees.
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Savings.
I believe everyone should save enough money to elevate their style of living or to fund a long-held dream. But unfortunately that not always the case.
As who you are, your greatest asset is you. Your ability to produce is going to give you the greatest return
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