Not everything in life is always one hundred percent pleasant. Most people don’t like paying their taxes, and I’m not going to recommend you to stop paying the tax man simply because you don’t like doing it. It would get you in trouble fairly quickly.
Personally, while I prefer to pay less tax, I don’t mind paying my taxes. Don’t get me wrong: one of the reasons I moved to the other side of the Atlantic Ocean was that Canada’s taxman is more entrepreneur-friendly than the ones I faced in Europe. It’s not the only reason, but it definitely contributed. Siphoning over more than half of your income to the taxman is simply not a model I could live with anymore.
But on the other hand, consider this. If I have a lot of taxes to pay, it means I make enough money. It’s simple math that successful people make more money and thus get taxed more than people who make minimum wage. So if I’m always looking to grow my income every year, that means I’m indirectly looking to increase my tax contribution (albeit at the lowest amount legally possible).
In order to pay the least amount of taxes legally possible on my income, I have a few things in place. First of all an amazing accountant, but most importantly I make sure I keep my records up to date throughout the year and track all my receipts and expenses. That sounds tedious, but with the right app on your phone all it takes is snapping a quick picture and a human on the other end will verify and enter the data for your. Shoeboxed is where it’s at. Give it a try today with a free for life account. Another service I use is Freshbooks, not only to invoice my clients but also to track my time and expenses. My account relies on the reports provided by both online tools to save me more in taxes every year than I pay her. Last but not least – as almost every creative person I hate bookkeeping so I need to keep staying on top of it as simple as possible. When even that gets to much I rely on my wonderful team of virtual assistants to take over the work I hate and they thrive on.
One important principle I’ve always used is that if I can come up with the money to pay a tax bill (or any bill for that matter), I can also come up with at least another time the same amount to spend on something for me. Being the travel addict that I am that usually comes in the form of a vacation or short trip, but you could use this for anything good for yourself. That’s why every year when I get slapped with my property tax bill I often book a vacation to somewhere exotic shortly after. Think about it. If the government forces you to pay something and there’s no way to get out of it, we always seem to somehow magically make it work. Personally I like to put the bar a little higher than that and somehow I magically seem to make that higher amount work too, which allows me to budget for all sorts of fun things.
Curious to read more about happiness and money organization principles I’ve used over the years? It’s all included in my latest Happiness book, available now on Amazon, Kindle, Barnes & Noble and many finer book retailers worldwide. Get your copy today!Get the book on Amazon