Look, there are LEGAL ways of reducing the shock of the dreaded 40% tax rip-off that occurs to my fellow folks who earn a chunk of their income from bonuses and commission (note to reader: I’m assuming that most of you know of this, but for the significant % of those that don’t know, allow me to proceed…).
1. Hypothetically speaking, you can change your tax information by alerting your HR dept (if you work for someone) that you do not want taxes deducted from your pay check, till further notice.
2. For example, lets assume your pre-tax monthly income is $10k–deduct all your monthly expenses, feed your savings account, and put the rest into a high-risk, high return fund in a developing country. Preferably not China or India, but Brazil, South Africa, etc.
3. OR—save the additional money until you have enough to invest in a cash heavy business.
4. In no time, you will be able to generate enough “side” income to offset the tax burden—and if you have the guts, quit your day job!!! I did…
Wealthy—not RICH—people do this all day.
