Debt and Taxes usage to create wealth
How to use debt and taxes to create wealth?
In my career of over 2 decades of helping my clients grow their wealth, I have found two tools that have been very helpful in creating wealth. These two tools are debt and taxes.
Do you know debt can be used as a leverage to create assets and build wealth over time?
Do you know that the government encourages people to use debt to create assets and generate long term wealth by giving you opportunities to save taxes?
But both these tools - debt and taxes are like sharp swords. Thus, they need to be handled well and you need to learn how to use them to benefit from it.
Why do you think the government incentivises you to take debt by asking you to pay less taxes?
One Primary Reason for this incentive is that the government is aware that entrepreneurs can help solve the bigger problems in the society and they can supplement the work that the government is doing to help better the economy.
So as an entrepreneur, are you willing to take risks and opt for debt to leverage your business or buy assets ?
If you are ready and willing to take debt, then let me ask you to pause for a moment and think about how to decide between taking debt or not not taking debt?
After working with numerous entrepreneurs for years, I have come to the conclusion that there is one question that entrepreneurs must ask themselves before taking debt?
The question is:
“Will you invest in the business or asset with full confidence if you had your money (and not debt) to invest in?”
If the answer is yes, then it is worth taking the leverage, but if you have doubts and the risk seems to be above your risk aptitude and risk profile, then I want you to pause and re-consider. At that point, you might need the expertise of a financial advisor or a wealth consultant, who can use their mathematical knowledge and financial acumen to advise you on actions to take without taking debt or reducing the amount of debt that you could take to match your risk profile.
Many of my clients have asked me, is it worth taking debt??
My answer is two folds - Yes, It is worth taking it if it matches your risk profile, but you must do it after you have created a savings rule and you are following the rule of ‘putting aside enough money for your short term and long term requirement needs’.
The next question that comes is, how much money should I put in the savings account for short and long term to have a financially healthy retirement. I will go deeper into this question and have you find the magic number that can be your individual retirement goal. I will talk about this in my FREE webinar on next Thursday. You will get the numbers that you were looking for and you will know how to take the next step to leverage debt and save taxes legally as an entrepreneur in Australia.
If you want to know how to create this wealth pyramid for yourself, I invite you to attend my LIVE masterclass the coming week. Register for a free ticket here. Or if you want to schedule a call with me to discuss how I can help you grow your wealth, please email me on [email protected].
