Saturday, October 29, 2011

The Single K and Other Things You Didn't Know

The Single K is a 401K for single self employed people who cannot establish a 401K because of their self employment. This little known Single K or Individual 401K has great tax implications. There are any number of financial institutions that will not charge a fee to establish your Single K. This means that your Single K will have a manager and the amount you fund will be invested in quality investments. Your tax liability will be reduced as you will be able to take a tax deduction on both your personal income as well as the business's income.

There will come a time when you have more cash flow and can't decide what to do with it. The Single K may be an ideal fit for you and your money to rest safely while earning and giving you and your business a tax break. This qualifies it for no-brainer status.

There's also a little known item I learned while paying off my car. I was sending in the amount I owed every month two to three weeks earlier than the due date. This meant that the daily interest was reduced and more was going to the principle which brought the final payment date closer.

There are numerous benefits to seeing money as a friend, not an enemy. Ridiculous, you say. Maybe not. We all live in a yellow submarine - of sorts - and when we go to our neighborhood Ace Hardware store or to our local restaurant, dry cleaners, shoe repair or nail salon, we are in essence sharing and spreading the wealth. This is what many of the good money managers know. Money abhors a vacuum. The labor done by those who bring us the service also brings us the opportunity to spend money. Okay now I'm not talking about compulsively spending the money. What I'm saying is, spending money is a good thing, especially for those of us who used to be underearners.

When you're taking care of yourself in this way, the Universe sees a means to bring more. The Law of the Vacuum is in effect. Cleaning out your closet to get rid of something usually brings with it a new wardrobe. With money, it's the same. Did it please you to spend the money at the dry cleaners? Did you enjoy some rare fine dining and give the waiter a decent tip? If it gives you pleasure, there's more to come. But if you hoard the money and feel ripped off every time you spend money, the joy of spending it is reduced to the degree that you dislike doing it. Money has to flow. Like a giant river, it must do that. And it will always come back. Always!

I used to hate paying taxes. I walked into the accountant's office in fear and trepidation. With little money to pay the IRS, I was in a state of apoplexy about what to do. Numb might be the perfect word to describe me back in those days. But that was then and this is now. Today I say,"I get to pay taxes." More importantly, behind those words are some values I have about the country, state and city I live in. It helps to reevaluate the good things that happen to us as a result of some forward thinking state politicians and board members in charge of municipalities. If you live in this mind set, you'll notice a big change in how you look at your life and everything will take on a rosier glow, including your finances.

I have a friend who was out of work for ten months. But he wasn't all that upset about it. He was paying down the debt and was well on his way toward being debt free. What happened next may surprise you.

After he was fired from the awful job he'd been doing for ten years, he took his family on vacation for a month all over the United States. He instinctively knew he'd get a job when he got back and he had trust that God would provide for him and his family. That he had a prudent reserve helped to a degree. When he returned from his much needed adventure, he was adamant that he was not going to take just any job. He would consider his options long and hard and wait until the perfect fit came his way. And in short order it did. He didn't agonize. He didn't pound his chest. He didn't race all over applying for work. He waited. And then, because he was allowing all that good to come his way, he got the best job he ever had, describing it as his professional home.

Sweet might be the word to describe my emotional state today. The IRS is no longer the enemy. If you think a thing is going to be hard or difficult, you may be right. If you think a thing will go smoothly, you may be right.

Choices. You always have choices.

"Financial abundance does not occur in one's life because of hard work or good luck or favoritism - financial abundance is simply the Universe's response to consistent thoughts and feelings of abundance." ~ Abraham - Hicks

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