Creating Wealth How To The Tax Breaks Of The Rich |
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| By: Hans Schoff | ||||
Basically, creating wealth requires being less greedy and selfish and instead being more generous and giving more. Here's what I mean: the more jobs you are able to create, the more housing you're able to provide, the more resources you're able to develop and bring to market, the more products you're able to offer, the more people you're able to serve and lives you can affect, the more you will stimulate the economy and the bigger a person you must become. However, those that are too greedy and selfish - those that continue to demand more and take more and think only of themselves or their family while contributing less and less - will continue to pay more and be penalized more. If you're generous, the tax advantages will shift to your side, but you have to be smart. This is the reason for our current financial crisis: too much greed (liar loans, bad appraisals, Bernie Madoff scandal, etc) and not enough generosity. One of the most basic rules of the Rich is that the Rich don't work for money. When you work for money the Fed steals your moneythrough inflation and taxes. (That's where it went...) If you do not have basic skills of money (to develop assets that producecash flow which leads to creating wealth), then you have to work for money and again the Fed will take it from you. So if you want to become rich you have to become more generous. Help more people to become better off and the better off you'll become. For example: someone who buys a rental home often times believes this simple act qualifies them as an investor. They believe that one single property - that one unit in and of itself - qualifies them as an investor. However, that one unit does not meet the above definition of a true investor, of being generous. You may have provided housing for one family, but you are the one who really benefits from it, having not created many jobs so it fits into more of the selfish or greedy range (but hey, you've got to start somewhere - just realize you need to scale-up to really make a difference and really begin creating wealth!) The truth is that once you're able to generously provide housing for many, many different families - once you have a total of around 1,000 units for example - ensuring you have acquired the skills, knowledge and experience as well that goes with having that many units - then you become a true investor. Again, you are rewarded for being generous and providing more housing which impacts others more than it does you, requiring demand for more jobs to service those units, manage the bills and rental income, lease vacant units, etc. As a reward for your generosity, significant tax benefits and better debt financing becomes available as well. So as you can see, it really does pay to be generous! |
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| Article Source: http://yourfinance.co.za | ||||
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