Almost everyone in this country tries for age or the Family to take precautions In view of the meager pension prospects, one's own assets play an important role. But if you're not careful, that's it fast at the end!

Taxes, Duties & Earning Money: The End of Financial Wealth? [+ Checklists]
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Why You Aren't Rich: 3 Basic Tips

Only with its help can we become financially independent of payments from our employers, pension funds or other institutions. Therefore strive more People because depending on the additional income - for example by means of securities, real estate, participations or other forms of investment. But no matter how well things are going financially, the high expenses in particular put a spanner in the works on account. Many people hardly have enough Moneyto put it aside. In addition to rent, credit installments or consumer spending, taxes and duties are the main factors. The expenses that father state demands from us are actually the largest item in most households. Anyone intending to build wealth needs to escape that logic, and that's what my strategies aim to do. They allow even average earners to create value by reducing the tax burden. But mine should Solutions not only help to save taxes. It's about our financial independence and that ways there.

1. Rethinking is required

First requires the Implementation of the strategies rethink. This begins with taking responsibility for oneself and no longer letting the state take over one's own money decide to permit. Because chances of asset growth are particularly useful for those who actively use tax law for their own purposes, i.e. who controls taxes. You, dear reader, will stumble across an unusual confession in many places: I love taxes. The reason for this is simple. Our tax law is complex and based on numerous Regulate. Since these laws can be used in their own sense, do it Funto play the control game and thereby realize chances of winning. As with any good game, whoever knows the rules wins first. Therefore, in the first section of this book, I show how the true amount of taxes and duties is calculated and what the principle is behind the many paragraphs in this area.

2. Rules for lower taxation

Then there are rules that help us to have less taxation. As a central element on the way to your own wealth, I present you with my three-pillarStrategy before. In short, the latter consists of optimally structuring income and expenditure for tax purposes and structuring the resulting assets in such a way that there is a positive returns generated. I'm going to show you how to use the existing rules to your advantage. And where the saved taxes enable profits, these funds can be invested and used to build wealth. You will see that my proposals are neither particularly complex nor that they require the financial resources of rich people.

3. Assets Protect

Finally, one should know the rules on how to effectively protect the assets created - be it from the bankruptcy of one's own business or from other unforeseen incidents. The book even looks beyond death. After all, your own family should then rather benefit from the assets you have saved up to that point than your father, the state. Finally, I will give you the necessary instructions for implementation. Please heed these tips if you are convinced by my strategy. Finally, it is important that you actually avoid avoidable mistakes. In any case, it is advisable to have a professional for the realization of my concept Consulting to claim something. Again and again the sections of this book show you how closely values, income, expenses and dept are intertwined. I describe these dependencies using the picture of the money propeller and with this book I would like to show you the Basics convey how your personal money propeller can be turned faster when building up wealth using the right tax strategy.

The tax game

Anyone who reads the German Income Tax Act (EStG) has to work through 99 paragraphs, each with countless sub-items. Section 7 alone ranges from 7a to 7k (of which, however, only 7a, g, h, and i are still in force), and each of these paragraphs has up to nine more or less detailed paragraphs. Like all laws, the EStG is also written in a language that often only experts understand. For most people, such texts represent the opposite of exciting reading; they are happy when the annual tax return is submitted and perhaps a tax advisor does most of the work. Almost everyone complains about the high deductions, but sees them to some extent as compensation for pain and suffering not having to deal too much with taxes and duties.

Anyone who relies on the state and accepts the assessment of payroll taxes and duties, and perhaps does not even file a tax return, has to pay the corresponding price in the form of large deductions. You can keep it that way, but it doesn't have to be. For example, I find this situation highly unsatisfactory because I prefer to keep my money and make my own decisions about what to do with my property. The state only gets what it needs. But what does "what is necessary" mean? It means for sure not, with crooked Tricks to lay money before the Treasury. But we shouldn't relinquish responsibility and give up creative options either. Instead, how about understanding the many paragraphs of the different tax laws as the rules of the game, instead of the supposedly unavoidable Eyes to close?

How not to lose to the Treasury every year

What do you think we get if we take a closer look at the logic behind these rules and try not to keep closing them every year? verlieren – against the tax authorities, who deduct half of our income without asking us? This consideration was at the beginning of my professional life, which is one of the reasons why I became a tax consultant. This has given rise to the ambition to use the rules of the tax game for myself and my clients. It has always annoyed me in particular that the state does not ask me; he just takes. That's why mine was Objectiveto regain control. Do you think staying on top of things doesn't work? If you leaf through the relevant laws, you will quickly notice that there are more exceptions than rules and that the tax authorities assess the same facts completely differently - depending on the situation. Many people complain about this fact and find it unfair that large companies pay almost no taxes. For me, however, this realization is rather positive; obviously lots of taxes aren't that inevitable after all.

They feature great for good reason Companys extensive tax departments that make sure that not too much money goes to the state. Small craftsmen, the self-employed, landlords, investors or employees can only dream of this; however, the tax laws apply equally to everyone, big and small. For this reason, I would like to make some of the successful strategies accessible to small and medium-sized taxpayers. Some of my basic principles are not overly complex and can be useful implement on a smaller scale. The strategies that I would like to present to you on the following pages arose from this basic idea. First of all it comes down to taking the reins of action yourself Hand gain weight. Personal responsibility is the prerequisite for using tax law in your own interest. Everyone is therefore well advised to know the direction they wish to take. The control game only works if you set goals. It is not a matter of achieving this one hundred percent in every case; everyone will adjust their plans sooner or later. But the personal strategy grows out of these goals.

Taxes and duties steal your wealth

Our complex tax law shows that we are only able to structure taxes optimally if we proceed individually. In addition, personal goals ensure the necessary Motivation. But everyone should remember one thing: personal responsibility means work. As with any good game, you need to be alert to controls and think about your moves over and over again. If we heed these rules, there are a variety of starting points for reducing taxes and levies. The bottom line is that we then have a lot more money left over to build a fortune. However, this is only half the distance on my strategic path behind us. Because the desired financial independence requires that we think about our entire financial concept. But how do we use our money wisely? We answer this question when we deal with our economic goals and clarify how we invest, or how we would like to make a living. Because almost every cash flow has a positive or negative effect on our assets - depending on how we structure it.

But before it gets into the full potential, a word on the occasion of the frequent newspaper reports on tax evasion and the like: This book makes sure that the strategies presented are one hundred percent legal and do not aim to cheat the tax authorities. I only explain why German tax legislation is the way it is and how you can build your own wealth on its basis. The tax laws that apply in this country give us all enough leeway. It is up to us to take advantage of these opportunities. The tax laws are barely legible because the state has made them so complicated. However, this complexity includes numerous rules and exceptions that can be used to advantage for the taxpayer. You are therefore asked to take the initiative and control the taxes yourself.

The location determination

At the latest after the first third of one's own professional life, a painful realization often comes: That Income rarely turns into wealth. This Problem not only affects employees, but also numerous freelancers and entrepreneurs. After all, many own their own property, but this often belongs to the majority of the bank and ownership is mainly reflected in high loan rates. Anyone who has children, needs a car or two and treats themselves to little things usually amounts to a tie – only a few hundred or thousand euros accumulate in the account each year; the income is more or less equal to that Consumption. In addition, those who read reports on demographic change and hear warnings about unavoidable pension cuts often start thinking about their future financial situation.

Whether you believe the illusion of pensions or not; Nevertheless, most people strive for additional security in the form of their own savings. Almost everyone does arithmetic games about a possible fortune, and the path to financial independence is probably a constant topic in every second family council. But where do you get it if you don't steal it? Especially since the accounts of many households show that a luxurious lifestyle by no means prevents the surplus at the end of the year. In almost all cases, the odds and ends make a difference. Rent or loan installments, insurance, cars, groceries or fees of any kind decimate the monthly income beyond recognition. Unfortunately, the bitter realization is that all expenses are more or less fixed costs that can hardly be reduced. This book is therefore not intended to optimize your personal payments. After all, you shouldn't be on a spending diet. You also know best what you need. On the contrary, our entire economic system is based on the fact that we consume, and those who do not play along simply starve to death.

Don't go on a spending diet: checklist for your personal situation

When it comes to structuring personal finances, we are not interested in how much an individual needs or which consumer goods are appropriate. We start with taxes and duties - and these can definitely be optimized. "You shouldn't go on an expense diet" This approach is particularly effective in optimizing expenses, because taxes and levies are usually the largest item in your personal financial statement. Savings are therefore particularly effective in this area. But wait, one step at a time. Before we get into the strategy for lower taxes and duties, it is important to first look at the basics of personal finance. Even if it sounds trivial, only that person treads the path to more assets and fewer taxes successfully, his monetary Status Quo knows all the details and has an insight into their own finances. Experience shows that many people do not know their financial situation sufficiently and misjudge both values ​​and income as well as expenses.

It is therefore advisable to consider these four basic ones first Ask to answer:

  1. What values ​​do I have? W.
  2. What debts do I have? S.
  3. What income do I get? E.
  4. And what expenses do I make? A.

Values ​​generate income

What are your values? A car? A property? shares? Jewelry? The list of personal values ​​almost always contains the points mentioned. However act at least two of the four do not appear as values, but rather as their opposite, as liabilities.

The car can be identified quite easily as a loss-maker. The car doesn't bring any money into the till. For example, it costs 30.000 euros at the dealer and is therefore "worth" this amount, but it loses a large part of its value on the first trip home. If you have your vehicle that is only a few years old merchandise, you often do not even get half of the purchase price. A clear case of loss of substance. As if that were not enough, owning and using the car causes daily, monthly and yearly costs Costs for fuel, maintenance, MOT, Insurance and taxes. This means that there is no income, only expenses. Therefore, a car is usually not an asset, but a liability.

Is your own property worth it?

The valuation of owner-occupied property is somewhat more complex. As a rule, this does not generate any income and is after ours Definition therefore no value. But it doesn't look that bad, because in many cases a property at least helps to reduce expenses. However, as surveys in this context repeatedly show, most property owners overestimate the savings they can make by owning their own house. Despite ownership, a property costs regularly.

These costs eat up a large part of the rent saved and in some cases exceed it. From a purely financial point of view, the purchase of your own property is therefore very rarely worthwhile. In addition, values ​​such as one's own house cannot be replaced light merchandise. First, the loan agreements create a bond; second, the homeowner needs a roof over their home Head, and those who have lived in their own property are reluctant to return to a rented apartment. It is therefore correct to classify your own four walls as a liability.

Please do not get me wrong, because I do not want to devalue home ownership. There are good reasons for your own house, such as the high feel-good factor or the extensive design options. However, these arguments do not arise from the investment side, but represent reasons for consumption. Ergo, I do not assign a property that I use to the values, but to consumption expenditure. This view has a profound effect on personal financial accounting, as we shall see later.

This is how you identify your personal values

My definition of values ​​in terms of their main purpose described here arises from a different thought. Values ​​have two central values ​​for wealth accumulation Features:

According to this definition, different examples of values ​​can be cited, such as rented real estate. In the case of the latter, the rent represents income. In the case of securities, dividends or interest generate income. In the case of company investments, it is the distributions that generate income. The examples mentioned also enable an increase in value. Gold and silver have also proven to add value over the long term, but they do not generate any ongoing income. "Wealth is formed according to purely mathematical criteria."

In order to identify your personal values, you have to ask whether certain objects (can) bring you something, or whether, viewed in the light, they tend to put a strain on your wallet. It is very important to make this constellation unsentimentally. Because your wealth does not ask about preferences or hopes; it is formed according to purely mathematical criteria. However, this restriction should in no way prevent you from creating value based on personal preferences, i.e. investing. Because you definitely need one thing as a prerequisite for success: It is necessary that you deal with your values ​​and your assets. Only if you do this will you acquire the necessary know-how and recognize the opportunities for profitable investments.