3 Powerful Strategies of Income Shifting, Money talks but Wealth Whispers!!!

The first financial lesson i received was from my grandmother. She taught me how to budget at a young age, but of course i wasn’t listening. As i got older her message started to sink in. I began to look around and analyze grown adults and their financial situation, and that’s when the epiphany hit me. Most adults are not financially literate. A lot of adults appear to be doing good on the surface, but underneath tells a different story. In any situation, you always want to go deeper than the surface; what lies on the surface is usually not the full truth. You can fake a lot of things, but money is one area you won’t be able to fake forever.

You want to build your financial plan on a solid foundation, which means you want to strategize. In anything you do, you need a plan in order to get started. Knowing where you are going is the first step in the right direction. I like to make complex things simple. Money is a complex subject, at least it was for me anyway. Through trial and error i finally came across a system that has helped me strategize my way to my financial goals. This is a three-tiered system called The Power of 3.

You don’t have to know a lot about stocks, bonds, or any type of investing. By using this framework you can shift your income from the negative to the positive. Income shifting begins with 3, we have  three basic strategies:

  1. Cashflow Management
  2. Business Income
  3. Investment Income

This entire concept of going from the first strategy to the third strategy is called income shifting. Basically it’s going from the highest tax bracket which is a job to the lowest tax bracket which is investing. Under each strategy you have three things you need to focus on, hence the term “Power of 3”. Putting things in groups of 3’s simplifies things for your mind. Moving into Cashflow Management the three things you need to focus on are:

  • Minimize taxes
  • Minimize debt
  • Minimize expenses

When these things go down, your cashflow automatically goes up. Now let’s go a little deeper with the power of 3. We can break the first step down “Minimize taxes”. Remember, everything is done in 3’s. In order to minimize your taxes you have three ways you can do that.

  • Revisit your W-4 and adjust
  • Excellent record keeping for tax purposes
  • Investing

The message that I’m trying to convey here is by using the power of 3 strategy, you can easily shift your income from the negative to the positive. I teach individuals how to set up a home base business and take full advantage of everything the government has to offer. The average American just spends money throughout the year not knowing that they can get a third of their money back during tax season. Most Americans want a tax refund without realizes they are getting the bad end of the stick. By setting up a home base business you will save 300-700 dollars a month just off of taxes alone.

Learn the power of 3 strategy and implement it. Procrastinating kills dreams. Contact me if you have any questions.

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