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Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

timdenning.com

71–80 of 81 posts

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#71

Earlier quoted context omitted.

And all of those "tips", besides the dividends thing, are actually tax fraud. I know "everybody and her mom" is doing it, but it's still fraud. If you get caught it could have quite bad consequences.

Nope. E.g. here is HMRC's page on providing a mobile as a benefit: https://www.gov.uk/expenses-and-benefits-mobile-phones/whats... Nothing to report if the company provides one phone and the contract is in the company's name.

I'm missing the part that says that the employee is allowed to use such phone primary for private means.

Of course a company (or legal entity for that matter) can get some tax benefits. That's not the point.

The fraud is when you declare to buy / use something for the company but use it privately. You just lying about the expenses.

Like I said, I know that "everybody" with a company does that. But in their position I would not tell anybody openly as this is quite clearly tax fraud.

In Germany this is even more complex as you can use some things in parts privately. But than things depend on how the "exact percentage" of private use is…

Of course nobody can really effectively control such things. The laws are actually made to help "some special people" to avoid paying taxes.

But things are very complex, and it's very easy to commit tax fraud by trying something like that without professional legal backing.

For that reason there is a whole "industry" helping people to avoid taxes!

But by just buying stuff "for your company" and using this stuff privately you will get in trouble pretty soon. I don't think this is different in any country.

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#72
post #37
post #29

Earlier quoted context omitted.

13. Use money to buy your time back.

I think this is the opposite of what I'm asking. Where does the money come from?

That was the joke. A lot of the comments are with the assumption that basic life needs are met.

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#73

Earlier quoted context omitted.

>Either this guy doesn't understand how income tax works, or I don't. (Or he's just lowkey recommending tax fraud) What you're missing is tax deductions. when you operate as salary, you get no deductions and pay maximum taxes. When you operate as sole proprietorship you can deduct 'business expenses' Business travel and parking? Deducted. Any new gadget or widget? Deducted. It doesn't create new money, you have to st…

In the US, at least, the IRS frowns a bit at people over-using business deductions. "Any new gadget or widget" might be deductible if your business includes, say, reviewing new gadgets and widgets. If you're a software developer, though, kitchen gadgets--for example--aren't generally considered deductible. In fact, if you're a software developer, very few things are.

>In the US, at least, the IRS frowns a bit at people over-using business deductions.

Fair, tax laws are different everywhere. Your mileage may vary.

>"Any new gadget or widget" might be deductible if your business includes, say, reviewing new gadgets and widgets. If you're a software developer, though, kitchen gadgets--for example--aren't generally considered deductible. In fact, if you're a software developer, very few things are.

The magic is in how you justify the expense as part of the business. Nothing stopping you from putting crappy reviews online for everything you buy and then deducting your life expenses.

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#74

> When you work for yourself there’s flexibility with how much tax you pay, and most importantly, when it must be paid. > > That means you can earn half the salary from a job and still take home more money. Genius. Either this guy doesn't understand how income tax works, or I don't. (Or he's just lowkey recommending tax fraud)

If you run your own company you have many opportunities to turn your normal purchases into business expenses. At least in the UK: * Dividends pay less tax than income. * Any work related equipment is a deductible expense. Includes computer, mobile phone, etc. * A company car, particularly an electric one, is much cheaper than buying a car as a private individual. Those are just the basics.

Aren't there conditions? for example, in Mexico a company car must bear a logo of your company, and be used for company business at least half the time IIRC, otherwise it counts as a personal car. Business travel and clothes are also limited to sensible business needs, you can't your sky resort vacation as a business expense... well, you can, but if you're audited it will be very unpleasant.

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#75
post #60
post #36

Earlier quoted context omitted.

Yeah, I was interested in this one and hoping to find more substance on the tax mechanisms that make this possible: > Working for yourself means you can earn less income than a normal salary and still make more due to tax reasons. When I clicked through to his "money" link, it was a category for his blog where he posts multiple posts per day on making money online. All with clickbaity headlines. Hard to take this ser…

Yeah, that one caught my eye. If this is focused on U.S. readers, that advice is extremely suspect.

There are definite tax advantages to being self employed, but I think for most countries your total tax rate for most people would end up being around 25% to 35%.

For you to end up taking home more money whilst earning only half as much - you would need to some how end up paying a negative amount of tax as an entrepreneur.

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#76
post #18

Earlier quoted context omitted.

How do those dreamers support themselves?

FIRE - https://www.investopedia.com/terms/f/financial-independence-...

Yeah, and you have to do something to FIRE. The question is, what is that?

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#77

Earlier quoted context omitted.

It looks like the author is somewhere between a self-help dude and a productivity chap and a “life hack, growth hacker” man. So he’s trying to sell us a book, maybe teach us how to earn passive income. Things like that. I reckon that this post resonates with exactly who he’s describing in the title: Twenty-somethings (predominantly male), who are looking for advice that would give them (theoretically) a ten-year head…

Fascinating. It would be a real treat to engage with someone for whom this material felt transformative. It feels like there would be a rather large gap between someone such as that and myself and it would be interesting to learn what makes them tick. Thank you.

I’ve met some of these people and its less that it’s transformative and more that it’s reaffirming their world view. It’s a circle high-5 that they know more than us sheeple.

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#78

Earlier quoted context omitted.

Fascinating. It would be a real treat to engage with someone for whom this material felt transformative. It feels like there would be a rather large gap between someone such as that and myself and it would be interesting to learn what makes them tick. Thank you.

I’ve met some of these people and its less that it’s transformative and more that it’s reaffirming their world view. It’s a circle high-5 that they know more than us sheeple.

Is it possible to summarize this world view? I'm afraid I am (like many others here) a bit too much of a cynic to appreciate these sort of mantras. It feels a bit like learning about a new (sub-)culture.

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#79
post #42

Earlier quoted context omitted.

>Either this guy doesn't understand how income tax works, or I don't. (Or he's just lowkey recommending tax fraud) What you're missing is tax deductions. when you operate as salary, you get no deductions and pay maximum taxes. When you operate as sole proprietorship you can deduct 'business expenses' Business travel and parking? Deducted. Any new gadget or widget? Deducted. It doesn't create new money, you have to st…

And then what happens when you want to pay yourself a salary? Aren't you essentially paying corporate tax rate and income tax on that amount? Maybe that doesn't apply for a sole proprietorship, but does it for a small business?

Payroll is a deduction as well.

You only pay taxes on profit. If you paid taxes on gross revenues it'd make running any business basically impossible.

Re: Cheat Codes for Life I Know at 36 That I Wish I Knew at 26

#80
post #76

Earlier quoted context omitted.

FIRE - https://www.investopedia.com/terms/f/financial-independence-...

Yeah, and you have to do something to FIRE. The question is, what is that?

It might help to consider this irony:

* point 4 from the post is "Most people don’t want to go to work. They just don’t know what else to do."

* your question above is "what should one do other than work?"

One interpretation of point 4 from the linked article could be phrased as "Nobody really knows what they would even do with their life without work". What if the points in the article are considered as an aspiration or future state rather than something you manifest immediately _right now_?

You can change your mind in an instant and commit to either generating cash flow from a business or real estate, or more passive income via investments in financial securities like stocks and bonds.

While the mindset change is a prerequisite, action and compounding take time. You can live the ideas behind principles of the points today in an instant, but it may take many years to actually realize the actual state described in the article.

There are many resources that seem to mix in with the career/finance/income points made in the article. For example, in the US-centric book "Set For Life" Scott Trench advances the theory that one should:

* build a $25k buffer/fund * use that safety net to take swings at cashflow opportunities

While I don't really even subscribe to that, there are many, many avenues that have worked for different people. It's probably worth exploring which one appeals the most to you if you'd like that sort of radical change.

Even investing a salary towards FIRE goals is a HUGE mental leap vs. the status quo if taken seriously.

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