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The Number "One" Enemy to Your Wealth is...

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When it comes to building your wealth, there are many enemies waiting to burn through it. Since financial education isn't being taught in school, most people don’t have a clue on how to build wealth correctly or know what the enemies of wealth are.

Most people that follow "typical" financial advice have a challenging time getting ahead. They must realize that the wealthy don’t follow "typical" financial advice and that's why they are wealthy. That’s why wealth is uncommon or not typical. Wealthy people study to find out what the enemies of wealth are and find ways to minimize them or to eliminate them.

One of the principals of financial literacy is understanding your financial enemies.

Do you know what the number one enemy to your wealth is? Excessive taxes.

Excessive taxes are a cost. As a matter of fact, from a financial literacy point, it's more important to understand costs more than understanding gains.

If you notice the word is "excessive taxes." Excessive taxes are a major enemy to your wealth. Taxes are beneficial because that is the price we pay to live in a civilized society. Without taxes, we wouldn’t have certain benefits that the government is more effective at providing than private industry. Since the government is very effective at creating new taxes, the goal is to not overpay them legally.

Here's one example to ask yourself when it comes to paying taxes to see if it's truly wise advice.

Does it make sense to lock up your money in financial vehicles that gives you a small tax break today and only pay more taxes tomorrow at some unknown amount?

You would probably say "NO" to this question. Yet this is one of the financial strategies that are consistently been told to most people when it comes to typical financial advice.

One of the things that’s most important to wealthy individuals is Tax Efficiency. They know when it comes to investing, growing, and most importantly keeping their wealth, taxes is always part of the formula.

So how do you pay less taxes? To pay less, you must become financially literate so you can understand and how to use the tax rules to your advantage. The "typical" financial advice that most people have been conditioned to follow, doesn't provide many options the reduce your taxes.

Many people get angry at others who pay less taxes than they do and they say “That’s not fair. They don’t pay their fair share.” Instead of being angry at someone who has learned how to implement strategies to minimize their taxes, dig deeper and ask them how did they accomplish that. A truly successful person would be willing to share information to someone who is eager to learn and apply sound fundamental principles on building wealth.

What I am going to do now is to share with you a tax poem that was sent to me in the 2009 on how many taxes that we can pay for and how they can eat up a substantial portion of your wealth.

Since 2009, we’ve had so many new taxes that have been created, I have updated and modified this poem a bit. It’s no way I can add all the taxes here. You will get the point as you read this poem.

Here is the poem for your reading.

The Tax Poem

Tax his land,

Tax his bed,

Tax the table

At which he's fed.

Tax his tractor,

Tax his mule,

Teach him taxes

are the rule.

Tax his work,

Tax his pay,

He works for peanuts

Anyway!

Tax his cow,

Tax his goat,

Tax his pants,

Tax his coat.

Tax his ties,

Tax his shirt,

Tax his work,

Tax his dirt.

Tax his tobacco,

Tax his drink,

Tax him if he

Tries to think.

Tax his cigars,

Tax his beers,

And if he cries

Tax his tears.

Tax his car,

Tax his gas,

and you say, “Can you please stop now, is all I ask?”

But he says “I'm sorry son, you’re out of luck.

I’m going to find other ways

To tax your butt.”

Tax all he has

Then let him know,

That you won't be done

Till he has no dough.

When he screams and when he hollers;

Then tax him some more,

Tax him till

He's good and sore.

Then tax his coffin,

Tax his grave,

Tax the sod in

Which he's laid.

Put these words

Upon his tomb,

Taxes drove me

to my doom...'

When he's gone,

Do not relax,

It’s time to apply

The inheritance tax.

ACA Tax (Proposed Healthy California Act that takes the place of the ACA, Medicare and Medicaid that has a cost of $400 billion that they don’t know how to fund yet.)

Accounts Receivable Tax

Building Permit Tax

CDL license Tax

Cigarette Tax

Corporate Income Tax

Dog License Tax

Excise Taxes

Federal Income Tax

Federal Unemployment Tax (FUTA)

Fishing License Tax

Food License Tax

Fuel Permit Tax

Gasoline Tax (currently in CA,

39 cents Excise Tax,

30-42 cents Sales Tax,

10 cents Cap and Trade “Fee” Tax ‘tax on tax’,

18.4 cents Federal Excise Tax,

12 cents “Designer Ingredient” Fee,

which equals approximately $1.12 per gallon

and is about to go up again in November 2017 another 12 cents per gallon to fix the roads that the current tax was supposed to be going to! Where did the money go?)

http://watchdog.org/232083/california-gas-taxes/

Gross Receipts; Tax

Hunting License Tax

Inheritance Tax

Inventory Tax

IRS Interest Charges IRS Penalties (tax on top of tax)

Liquor Tax

Luxury Taxes

Marriage License Tax

Medicare Tax

Personal Property Tax

Property Tax

Real Estate Tax

Service Charge Tax

Social Security Tax

Road Usage Tax

Sales Tax

Recreational Vehicle Tax

School Tax

State Income Tax

State Unemployment Tax (SUTA)

Telephone Federal Excise Tax

Telephone Federal Universal Service Fee Tax

Telephone Federal, State and Local Surcharge Taxes

Telephone Minimum Usage Surcharge Tax

Telephone Recurring and Non-Recurring Charges Tax

Telephone State and Local Tax

Telephone Usage Charge Tax

Utility Taxes

Vehicle License Registration Tax

Vehicle Sales Tax

Watercraft Registration Tax

Well Permit Tax

Workers Compensation Tax

This is mind blowing! This is one of the reasons why the middle class is in trouble.

Not one of these taxes existed over a100 years ago, and our nation was the most prosperous in the world.

We had absolutely no national debt, had the largest middleclass in the world, and Mom stayed home to raise the kids.

What happened? Politicians that wanted to get reelected, instead of being fiscally responsible. They made promises to start programs that required a lot of revenue and the government gets its revenue from Taxes, Fees, and Fines.

Ask yourself this question: How many times have you seen taxes, fines and fees go down for everyone? Very rarely.

Now you know why the number one enemy to your wealth is TAXES.