How to Keep an Abundant Cash Flow From Over contrasting Your Budget and Your Goals

How to Keep an Abundant Cash Flow From Over contrasting Your Budget and Your GoalsThe thing is when you are married and you have kids to consider how to keep an abundant cash flow from leaving you broke.

 You want to make sure you are paying the least amount of tax to keep your budget balanced no matter if your income changes.  As an example if you get a pay raise up to $1200. You take your standard deduction and 2007 stipend and file it on your 1040. May I say here there is nothing wrong with that.  If you continue to get raises you should not have any problem with tax planning.  But if you do that and you are still living in what your employer has classified as a poverty level with no medical insurance, no childcare, no clothes, even your utilities will be higher than they should be in your budget.  This is even more important if you want to play to keep your children in a proper school. (I made this mistake until I realized everyone looked at me differently.)

The problem is when you are married, there are two incomes.  There is a huge tax gap if you combine these incomes.  In the example as a single person you have one spouse working and the wife also working two part-time.  One he or she will be working and the other will not be working.  One person will be making payments and the other will not be making payments.  The difference in a two-person tax situation will vary from 0% all the way to over 10%.  That is a lot of taxes you are losing when you are in a two-person family. Why?  That is simple, the person making the lower-income is paying zero taxes and the person making the higher income is paying ten percent federal and most likely state income tax on that money. Not all, but most of the money owed is federal and most probably state income tax which also gets rolled on your spouse’s Social Security. So, that is the low money. That is the IRS working on your behalf.  A lot of taxpayers do not understand that and think you are on your own and the government is taking care of them.  Many that has this kind of thinking have been trained to believe that.  When they realize they have been lied to and their tax refund is being taken, they get mad.  They just win.

This comes to me.  The responsible thing to do is to not worry about IRS, penalties, and extra money that you are losing while getting in the best possible position to take care of the Universal Financial Equation. Yes, you have money coming in and the government is going to get paid eventually.  I can guarantee you that there aren’t a bunch of things in the future that Uncle Sam has better do, other than keeping Americans from getting their fill of the jam the government is feeding them on.

The only way to keep your abundance of money and resources coming in is to work with the system. I have found this to be the most difficult Law of the universe.  Most of us has been taught that the only way to hold on to money is to work hard and cut corners.  That means that we spend money we don’t have to keep up with the Jones Andals. So, the question becomes when is it more appropriate to put work in and to start over or is it more appropriate to do little or something significant to keep working hard so that you can hold on to your resources.  I learned this lesson the hard way.  Now, I teach all my children that they should put some sort of time into something every day if they are going to have a chance of living through their days.  My son in particular is an extremely lazy guy, but I want him to do something every day since he will be living with me.  He has a park and trail group that he volunteers for. He also keeps himself busy driving his automobile.  At any given time he is being walked to school or going to bed in the middle of the night.  He has been out of the house an average of 6 days a week doing something.  He has taught me that he has to have two different sources of income that generate at least $15,000 a month in earnings.  The bottom line on his statement is, he needs 3 different incomes so every month he is holding down 2 full-time jobs as well as working part-time somewhere in the middle of the night to keep his day job.  The idea is that even his hourly wage is enough to support himself and to pay all of his bills at the end of 90 days.  That $15,000 in his bank account is his “labor of love”. He certainly does deserve it.

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