Wealth Building Secret Revealed
What is the biggest secret of wealth building? Well, the biggest secret of wealth building is that, you minimize or avoid your biggest expense – Tax.
Remember, “To Become Wealthy, you need to minimize your realized Income (Taxable) and Maximize your unrealized (Non-Taxable) Income.”
This is the golden secret of wealth building. Well, I am talking about increasing Capital Gains Income. I am talking about making money in valuations. Wealthy people make money in Capital Gains and Valuations. After all, Money is the game of valuations.
What Smart Business owners & Investors do is, they keep re-investing their profits in their own Businesses. This helps them in two ways. One is Business expenses are tax deductible and the other advantage is that, if you keep re-investing your money in your own Business than it will increase the valuation (Capital Appreciation) of your Business and this Capital Gain is Tax Free.
Thus, Rich people always try to maximize their unrealized income while everyone else try to maximize their realized income to fuel their high status life style. Money is a game of Valuations. The Valuations of your Assets. The more valuable asset you own, the more rich you will become.
And the advantage of valuations is that, any increase in valuation is totally tax free. Thus, it is a smart idea to earn in valuations. And you can only earn in valuations by investing your money.
There is no other way of save your money from tax. Tax is a major money killer which hurts your money a lot if you don’t properly plan to manage it tax efficiently.