I’ve spent over 10 years studying rich people and their mindset.
I began reading self-improvement books in 2014 after I graduated from high school.
I was hungry for success and determined to make it by any means possible.
Unlike the majority of people who claim they want success but their actions do not line up with their goals, I always took getting rich seriously.
I embraced the Grant Cardone mentality of viewing success as a duty and an obligation to oneself and the people around them, as opposed to viewing success as something only achievable if you are born with a silver spoon, which is the way most weak-minded individuals think nowadays.
I always found it interesting how rich people always stressed financial education, while poor people said “Money is not everything. Money won’t make you happy”.
While rich people paid attention to their money and talked about it all the time, they did not value money the same way the poor and middle class did.
They did not stress over money, but instead enjoyed discussing ways to make their money work for them so that they could live their best lives.
They did not hoard their money, they got rid of it as soon as possible so that they could make more.
They never worked for money and instead their money worked for them.
They never said “I can’t afford it” and instead got rich.
They had an abundance mentality which was evident in the confidence they had that they could make it back.
They respected money but were not obsessed with saving paper dollar bills.
They understood money was a tool to be used, and they used it to its maximum potential.
They went into debt instead of getting out of debt, and they used debt as money.
Let’s contrast that with the way poor people act.
Poor and middle class people hoard the money they make, and as a result their money goes stale.
They claim money does not make them happy, but they spend all day trading their time (which they will never get back) for money that they know “doesn’t make them happy”.
They live with a scarcity mentality and believe that they cannot afford things.
They watch excessive television and hate discussing money and as a result have very little financial education besides the garbage taught in schools.
They do not put their currency into circulation and instead pinch pennies and save dollars, believing that this will make them rich.
They ignore the fact that over 80% of US dollars were printed after 2020 and that US dollars are not backed by gold, silver, or anything.
In fact, the only thing that maintained the value of the US dollar after President Nixon took us off the gold standard in 1971 was the fact that oil was traded worldwide in dollars.
Now, the BRICS nations (Brazil, Russia, India, China, South Africa) are trying to circumvent the dollar monopoly and utilize the Chinese Yuan to trade oil.
This will cause the American dollar to become completely worthless in the very near future.
The average Joe thinks the US can never fall.
That’s what people thought during the peak of the Roman empire.
All empires rise and fall, and the US empire is destined to fall.
I’m not saying this to be negative, it’s just the truth.
The writing is on the wall and most people are too distracted to realize the cash heist that is going on behind their backs.
All of this needs to be said in order for you to understand how the system works.
If you have a job, your taxes will be conveniently removed from your paycheck.
The more money you make, the more tax you will pay.
In business, the bigger your business grows, the less tax you will pay.
In fact, you can pay zero taxes legally once you grow large enough to take full advantage of all available deductions.
Rich people do not pay taxes because they understand taxes.
Average people pay all the taxes because they think that’s what they are “supposed to do”.
I used to wonder how the top dogs could pay no taxes, tell the world that they pay no taxes and not get arrested.
If they were committing tax fraud, why would they tell the whole world?
There must be something that they know that we don’t.
That led me down the rabbit hole to understand taxes.
I’ve found out that the rich really pay no taxes and they do so legally.
Donald Trump famously told Hillary Clinton when she said he pays no taxes “That makes me smart.”
Instead of hating on the rich like most losers, I decided to learn how they pay no taxes by any means necessary.
What I learned is that taxes is why people are trapped in the rat race.
You cannot out-earn inflation and you cannot get rich by paying your taxes and working for money.
What should you do then?
Learn the tax code.
Learn what deductions are available.
These change year by year.
Did you know that during 2021-2022 you could write all 100% of all business meal expenditures at restaurants, while normally it’s only 50%?
Did you know that during 2022, thanks to bonus depreciation, you could write off the entire cost of a car weighing over 6000 pounds in the first year and completely offset your taxable income?
The rich do everything they can to get their taxable income to zero before it is taxed.
People who work jobs cannot do this.
They cannot maximize their write-offs and deductions.
This is why they pay the most taxes.
When you start your own business, like an Amazon store, you will be able to write off many things.
You can write off your entire cost of goods sold, and only have to pay taxes on the profit.
You can then deduct any equipment you have purchased for your business, any supplies you used, business meal expenses, gas expenditures, computers, cellular devices, cellular plans, business app subscriptions and more.
The rich spend all their money on things that can be claimed as deductions and then are taxed very little on whatever profit is left on paper.
The available deductions change year by year and it is important for you to know what the current deductions are so you can reduce your taxable income to the maximum.
Conclusion
You can write off anything that directly relates to your business operations.
This means you can reduce your taxable income before it is taxed.
If you understand the implications of this, you will realize how the rich pay little to no tax and how you can do the same.
Best regards,
Alex Chung
This is not financial advice and I am not a financial advisor.
This is not tax advice and I am not a tax advisor.
Leave a Reply