How many Hours are you working a month, to just pay your Taxes?
Yesterday I had an enlightening meeting with one of my property investors who shared this with me
His visual realisation :
How many hours do we have to work in order to pay only our Income Tax ?
With say an average taxable income of $70,000 per anum, tax paid is around $14,850 per anum
Based on a 40 hour week, the rate per hour would be $33.65 / h
If income tax paid is $14,850 .. this equates to working our first 441 hours just to pay our Income Taxes!!!
Or the first 11 weeks (yes Eleven) weeks in our working year just to pay our Taxes!
Now apply this same principle to Investing and you will immediately realise how far behind the proverbial 8’th ball you are, before you begin growing your investment using interest type baring investments.
Does this make you sit up and think?
One of the astute ways to generate personal wealth, he demonstrated, is using pre-tax monies to invest with. Keep it simple …
Wouldn’t you prefer to dedicate only 4 out of the 11 weeks you need to work so that you can pay off your Income Tax. I know I would and I know many investors who do … because it makes $en$e to invest using PRE-TAX dollars!
Ask me how and I will gladly share with you!
Comments or questions are welcome.