Taxes 101: What You Need to Know?

Benjamin Franklin said it best with the quote,

“In this world, nothing is certain except death and taxes.”

Taxes are probably worse because estate taxes are levied on your estate even after you’ve passed on. The government never takes a break when it comes to squeezing every last dollar it can from you – alive or not.

In this article, you’ll be given a primer on taxes so that you understand what they are and how to deal with them effectively.

* What are taxes?

While the Libertarians will be quick to parrot the line, “Taxation is theft!” – and to some degree they’re right, the truth is that these compulsory contributions levied by the state are used to fund public works and services that no one else will feel responsible paying for.

Examples would be road works, paying police officers and state employees/officials, paying Social Security and Medicare, etc.

Paying taxes is a bitter pill to swallow, especially when the funds are mismanaged by incompetent politicians. Nevertheless, they do have a purpose in maintaining the general order of things.

Whatever your stand on taxes may be, you’ll still need to pay them. Tax evasion is a serious offence with heavy penalties. The government wants its money, and you can bet it will collect it one way or another.

                              7 Common Taxes to be aware of:

The 7 taxes below are the most common ones, but they’re not the only ones. Familiarize yourself with the taxes below.
 
1. Income tax (Payroll tax) – This tax is levied on your income. Your employer will withhold a percentage of your salary and pay the government on your behalf. It’s all done automatically.
 
So, you don’t even get to see the money and the government dips its hand into your salary before you do. Generally, the more you earn, the more taxes you’ll pay.

2. Estate tax – This is also known as ‘inheritance tax’ and it is levied on your estate (upon your death), if your estate exceeds a certain pre-determined value.

3. Sales tax – When you purchase products/services online or offline, you’ll pay a little extra for taxes. This is exactly what sales tax is – it’s a consumption tax.

4. Property tax – This is a real estate tax on your property. It could be 1.1% of the value of your home. Corporations pay property taxes too - on the various properties they own.

5. Excise tax – This is a tax levied at the manufacturing stage, unlike sales tax which is charged at the point of sale. So you can say that some goods such as alcohol, gasoline, cigarettes, etc. which have excise taxes - are taxed twice. Once during manufacture, and once when they’re sold to the end consumer.

6. Corporate tax – This is a tax levied on the profits that corporations earn. What’s amazing here is that corporate taxes in most countries is lower than personal income tax.

This has resulted in lots of debates about why billion-dollar corporations are using loopholes to get away with paying lower taxes than the average individual.

It’s important to note that it’s not the dollar amount but the percentage that seems to be the biggest cause of concern to many.

7. Capital gains tax – If you invest in stocks and they appreciate in value, when you sell off the stocks, you’ll pay a capital gains tax on your profit.

                                 Direct VS Indirect Taxes

The biggest difference between a direct and indirect tax is that indirect taxes can generally be pushed off (legally) to others. Direct taxes are non-transferable.

Taxes on your personal income and corporations’ income are direct taxes. Sales tax and excise tax are indirect taxes.

Direct taxes are more difficult to collect because self-employed individuals can evade taxes and so on. Indirect taxes are almost impossible to avoid because they’re levied BEFORE you can get access to the goods/services you need.

        Indirect Taxes have 2 Disadvantages for the average person:

1. Firstly, they’re regressive.

For example, a wealthy person and someone in the lower income bracket will pay the same sales tax for any goods and services they buy.
While the tax may mean nothing to someone who’s wealthy, it will be a burden to someone who doesn’t earn much, because their disposable income will shrink with each purchase.

2. The burden of the tax can be shifted. This is a huge problem and also leads to inflation.
When the government imposes excise duties or sales taxes on manufacturing, these business (corporations) will pay the taxes first… but they’ll then raise the prices of their products to recoup what they paid in taxes.

Now, consumers (who are mostly individuals) are stuck with more expensive products without realizing that they’re indirectly paying the excise/sales tax. Over and above that, they get stuck with a sales tax too.

The average individual bears most of the burden when it comes to paying taxes.

                         Why ‘Taxing the Rich’ is mostly hype

There’s a lot of vitriol thrown around on social media with thousands of people demonizing businesses and wealthy individuals. It’s almost as if the wealthy are to blame for all the social ills on the planet.

It’s common to see people saying that billionaires should not be allowed to make such obscene amounts of money while others starve. This is a philosophical debate which has no end in sight.

Let’s look at what actually matters – the system and the numbers.

When you tax the rich, you can bet that they’ll have money to hire the best tax consultants and lawyers in the business to find tax loopholes to get around legislation.
 
Rest assured, there will always be a way for them to avoid paying unnecessary amounts in taxes. The system is designed by and for them. Lobbying helps them too.

Should legislation not work in their favor, businesses will shift their factories and operations to countries with lower taxes and cheaper labor costs – all in the name of profit.

As a result, many people will lose their jobs. Once again, the average person takes the brunt of it.
The harsh truth is that taxing the rich will not lift the poor out of poverty. It’ll only make politicians richer. So what should you do?

                                  Legally reducing your taxes

Many people find it aggravating to see that governments which rarely produce or create anything of value, get so much money so easily. This also explains why politicians spend taxpayer money recklessly.

The best thing you can do for yourself is to speak to a tax consultant and find ways to reduce your own taxes. You must consult a professional who is up-to-date on the latest tax laws.

They’ll be able to guide you on how you can move your money into tax-deferred retirement accounts and so on.
 
Proactively finding ways to reduce your taxes will benefit you considerably in the long run. The government has enough money and it keeps printing more while sucking the people dry.

If you wish to stay solvent and have a nest egg saved up for retirement, you’d be wise to pay attention to your taxes and do the needful.

“Collecting more taxes than is absolutely necessary is legalized robbery.” - Calvin Coolidge

Discover the Number #1 Cause of Financial Problems for Online Marketers

 There is one problem that affects many online marketers and it can single-handedly wipe out their finances and leave them in debt if it’s not controlled.

This problem is none other than ‘Shiny Object Syndrome’.

It affects marketers of all levels and when mixed with ‘lifestyle creep’, it can really put a cramp on your finances. If you don’t understand these terms, don’t worry. By the end of this article, you will.

Shiny object syndrome refers to a situation where marketers are very quick to jump on every new and trending product/course/etc. that comes their way. They’re lured by the hype and empty promises of quick, easy money.

For example, a beginner may decide to set up a niche blog and make money with affiliate marketing.

After setting up the blog and making about 4 posts, he receives an email about a course showing how an e-commerce guru is making $3,232.45 a day just by drop shipping.

Wow! Now that’s a shiny object!

The beginner drops whatever he’s doing and rushes off to buy the e-commerce course which may be anywhere from $27-$1,997. Many marketers go into debt by charging these expensive courses to their credit cards.

What they don’t realize is that it will take a lot longer to make money with the method the guru is espousing, than it will take for the credit card bill to come – which will probably be about 3 weeks to a month.

The marketer will then pay the minimum on the card and end up paying interest for a long time on the bill. Even if the product is affordable, more often than not, it will be an unnecessary purchase.

Why?

Because before the marketer can make money with the e-commerce course, he has rushed off to buy a new course on publishing profits with Kindle or Etsy Millions with arbitrage or some other new course that hits the market.

It never ends because the shiny products keep coming… and the marketers keep spending without realizing one fundamental rule – you ONLY make money when you sell.

You should focus on selling, whether it’s your own products or other people’s products – you must sell. You must produce MORE than you consume. Then and only then will you profit.

You’ll also avoid ending up in debt and won’t be jaded and led to believe that all online marketing is a scam.

You must take your project to completion. Ditching your business halfway to start on a new one repeatedly will only leave you broke and with a bunch of half-finished projects.

Now let’s talk about ‘lifestyle creep’…

Lifestyle creep is a situation where your expenses increase to match your income. For example, when your income increases, you get a better car, start eating at more expensive restaurants and so on.

As your expenses increase, so will your bills and you’ll find that your financial situation doesn’t really improve because you’re still not holding on to much money. You may still be in debt and living from paycheck to paycheck – even if you’re earning more!

Lifestyle creep can set into your online business too. For example, while you may have been using a cheaper page builder with a one-time fee before, now you may suddenly want a new page builder that’s charging you $97-$197 a month.

Do you really need this new expense?

No… but everyone else is using it and raving about it, so you want it too. And you get it.

Now your costs have increased. When you mix lifestyle creep with shiny object syndrome, it becomes very costly.

Marketers who earn 4-5 figures a month constantly think that they need to improve their skills and end up spending more and more on high ticket courses… or they think that they need multiple streams of income.

If you can afford the extra training, that’s well and good. But if you go into debt to purchase the courses based on the expectation of increasing your bottom-line in future – you must be ready for the interest rates that the banks will levy on you, if you fail to pay your bills in full.

Always remember, no matter how successful a marketer you are, the banks are always bigger than you – and if you default on your bills, you can rest assured they’ll come for you and make your life a financial nightmare.

Allocate no more than 20% to 30% of your income to improving yourself. Make sure all your debts are paid off first. Avoid unnecessary costs in your business. More expensive solutions aren’t always better. Sometimes you’re just paying for the brand name.

Focus on one method until you’re successful… and it’s always better to save up for a course so that you can pay for it in full rather than buying on credit.

If you err on the side of caution, you’ll make money online and not run into debt and financial stress. That’s the best way to go about it.

“Simplicity is the ultimate sophistication.” – Leonardo da Vinci

Are You Addicted to Work?

                                                                                 

Work addiction is just like most other addictions. It’s hard to break and you’ll need to be mindful about it at all times so that you can wean yourself off this addiction.

The good news is that unlike smoking or drug addiction, it’s easier to stop being a workaholic. All work and no play makes Jack a dull boy… and in these times, with the workload and stresses that abound, Jack just might go mad if he doesn’t take a break.

The first step to understanding why you’re addicted to work will be to self-reflect on why you’re doing what you’re doing.

* Understanding your feelings

Very often, there are feelings of guilt or fear associated with working too much. You may feel guilty at not earning enough to provide for your family. Or maybe you’re working long hours just to please your boss because you fear losing your job
.
If you’re an entrepreneur who works 12 to 16-hour days just to speed up the process and earn six figures a month, your lack of patience might be taking a toll on your physical and mental health.

Once you understand what’s making you work such long hours, you’ll be able to understand how to fix the root cause of the problem. In some cases, it would be a good idea to speak to a professional for guidance.

* Following a schedule

The best way to break work addiction will be to have a fixed schedule that you blindly follow. This will mean starting work at the same time every day and stopping at the same time
.
Ideally, you shouldn’t be working more than 8 or 9 hours a day. You could push it up to 12 hours, but not beyond that. Even 12 hours is extreme.

If you work a day job, leave the moment work ends. Staying longer at the office is not a reflection of your dedication, but a display of your lack of productivity.

All work you need to complete for the day needs to get done within the working hours. Then it’s time for you to switch off and wind down.

You MUST be extremely strict with this routine of starting and stopping work at the same time daily. This will help you break your addiction to work and help you to let go of the need to keep hustling and grinding to do more and more to a point where it’s a never-ending cycle.

* Increasing productivity

You can get more done in a shorter time by increasing your productivity. Very often, people spend time at the water cooler gossiping, or attending unnecessary meetings that are time wasters.

Eliminate all time-wasting activities from your work schedule. Use a pomodoro timer to keep you on track and focused. You want to be doing work that matters and not just ‘busy work’ that makes it look like you’re working – but what you’re doing is irrelevant, and you’ll need to spend more time doing the relevant work later.

* Delegating

Whatever can be automated, should be automated. Whatever can be delegated, should be delegated.
Time is your most important resource. Micromanaging and perfectionism will only stress you out. Pass off your mundane tasks to someone else if you can, and only focus on the highly important tasks that matter.

You may need to pay for software or hire help (workers, freelancers, etc.) to handle your workload. The investment will pay for itself many times over by freeing up your time so that you’re not overworked.

* Exercise

Exercise is fantastic for giving you a mental break from the stresses at work. It’ll also release dopamine in your body.

Try to end every work day with a 20-minute exercise session. It could be yoga or sprints or just some bodyweight training. These 20 minutes will help your body stretch the muscles, get the heart pumping and the blood flowing
.
You’ll feel better and less stressed out. You’ll also have something to look forward to after work, provided you enjoy the activity you’re doing. So, find one that’s fun.

“Workaholics are addicted to activity; super achievers are committed to results.” - Charles Garfield


 

SEO Importance In Blog Advertising

Having a blog on the Internet that gives people some
good information doesn't do a lot of good if people
don't know that it's there.

If you want people to be able to find your blog,
something that is important is that you have good
Search Engine Optimization, or SEO.

Whenever you put one or more words into a search bar
to look for something, the SEO of a website is what
helps bring up those websites.

For example, if your blog is about Harry Potter, you
are going to want to be sure that your blog includes
popular terms such as Harry Potter, JK Rowling, and
other things that are related to Harry Potter.

Think about the things that people look for when they
are interested in Harry Potter, and the kinds of
things that come up when you search.

It's always a good idea to use your own experience
when you are optimizing your blog for searching.

Think about what has worked, what hasn't worked, and
use them for your own blog SEO. This way, when someone
puts one of the terms that you put in your blog into a
search engine it will be one of the sites that comes
up.

Of course, there are other factors that come into play
that determine where your blog will come up in the
list, but everyone starts somewhere.

The more keywords that your blog uses, the more people
will come to your blog. It just takes time and
patience.

Blogging Directories - Great Advertising Venues

If you want to have more people visit your blog, there are plenty of blog directories on the Internet that
you can submit your blog to so that people will come and visit it. Most blog directories are listed by the
topics that the blogs that are submitted cover.

Blog directories categorize your blog based on what your content is about.
Usually, the best blog directories are human-edited, meaning that each
submitted blog is reviewed by a person who decides whether the blog
belongs in the catalog or not.

Blog directories are repositories for blog posts with links to the sites of the blogs themselves
if you want to look further. They are categorized by topics and are searchable.
Blog directories come and go, but the ones listed here have stood the test of time.

Another great place to add your blog is  Blogger  . Not only do they have a
extensive list of categories with sub categories, you can get your blog reviewed. For the most popular
blogs, it shows the amount of hits that blogs have and if they have any reviews. As well as listing by
category, the blogs are also listed by location.

Here are the best free blogging sites you can use to start your own blog today:
    Tumblr.com
    Wix
    WordPress
    LinkedIn
    Weebly
    Medium
    Ghost
 
There are other blog directories on the Internet - these are only a couple of them. But blog directories
are a great place to advertise your blog and to make new friends. You never know what you will find when you browsing through the directory, and you may just find out information that you never knew. Some of the blog directories offer chat features as well, so that you can meet other people easily.

As you can see, blog directories are a great place to get your blog noticed and bring people to read your
blog and look at your pictures.

Happy Blogging take care, enjoy and be prosperous...

Advertising Your Blog In Your Email Signature

If you have a blog that you are particularly proud of, and that you want to share with other people,there are a lot of free ways that you can get your blog noticed.

One of those ways is something that you do everyday, and that you may not even consider as a way to share your blog. Put the link to your blog in your email signature.

An email signature is a powerful way to convey your professionalism to your readers and give them the information they need to contact you.An email signature is placed at the bottom of each mail, which helps leave a great impression and makes you stand out from your peers.

Create a Free Email Signature | In Less Than Two Minutes with WiseStamp,
Turn every email into an opportunity with WiseStamp. Add your photo, details,
links & sync with one click to your email account. Start now! Logo Animation. No HTML Is Needed.

And an other way is with Hubsport -Free Email Signature Generator

Chances are that you send out emails more times then you can count during the day, Each time you send out an email, you can advertise your blog by putting the address of your blog in your email's signature.

It's always a good idea to write something catchy like, See what I am up to now, or Read my latest
chapter of my blog here, depending on what type of blog you have.

The thing to remember about putting an advertisement in your signature for your blog is to make it short, but very catching.

You want people to be interested enough to want to click on it, but you also don't want to scare them off.

Just like it is with any advertisement, you want to give them just enough to be interested and take a
closer look at what it is that you are advertising.

Think about what it is that your blog is about. What is really going to interest people about it and want
to visit? That is what you should include in your signature, and that is what is going to get people to
go to your blog.

 

Create a great email signature with you blog or website URL and in time you will see more traffic and look more professional.

Getting The Message Across For Your Blog

 If you are someone who uses chat programs such as
AIM- AOL Instant Messenger or,ICQ -also on.wikipedia.org or Yahoo messenger or Googletalk- or Facebook messenger  and have a lot of online friends, it can be a great way to get people to read your blog and to leave comments on it.

As it is with your signature on your email, you don't want to just send an instant message to people
every time you update your blog. You also don't want to simply send a message to someone asking to read your blog.

For someone who has been on your friends list for a while, you can be less formal of course, but you want to be polite when you talk to people who you may have not talked to in a while or someone who is new.

Use your own judgement when you are chatting with people about your blog. If it's someone that you
haven't talked to in a while, and someone asks you what you have been up to, you can point them to your blog so that they know what is going on with you.

Some blogs, like LiveJournal: Discover global communities of bloggers,
 have their own messaging program, so that's also another good way to advertise your blog.

Be certain that you don't send someone a message though only to advertise your blog. It's more polite
to say something about their blog first, and then tell them about your blog.

If you have a common interest, it's a good ice breaker and it will give you something to talk about.