Work Smart - Not Hard: A key to financial success
Often people are of the thought that they have to work really hard to perform better. But this is not the case always; in fact people need to know that working smartly is the key rather than working hard. Talking about your future say
Individuals mostly pay taxes for their income called as income tax based on the amount of their money earned and the bracket they fall into. You can have some of that money back which was paid if you have overpaid it, have filed tuition receipts for education, have some dependents or else invest in an RRSP or in some pension plan. These inferences can consequence in a refund which many folks spend on luxuries or in paying down debt.
There are certain things that you can perform that will somehow guarantee you in providing peace of mind as well because of better financial future but you need to understand the principals involved. If you are investing in a Pension Plan say for example you can benefit yourself in a number of ways which are as following:
LESS TAX – for your understanding assume that you have been required to pay thirty percent tax on your income earned. Like for every $100.00 that you investing in any Pension Plan you will be getting a tax refund of $30.00. That indicates that the investment really only cost $70.00 from your own pocket actually. When you finally decide to make a permanent commitment for investing every single month you can adjust your source deductions by asking your employer.
This means that your pay cheque will really be $30.00 more every month and would need just to add $70.00 more to have the whole $100.00 investment for you and just consider the fact that in the end of the year you would be having $1200.00 which contains of $840.00 from your salary and $360.00 in tax money that you didn't have to give to the government.
EMPLOYER MATCHING – there are many employers who usually set up a pension plan where they contribute money in your name on the amount that you have contributed. Say, for example if your employer has contributed fifty cents on the dollar this means that you only have to invest $50.00 each month in order to have deposits of $100.00 in Pension Plan. This is actually a gift for you which isn’t required to be returned back.
INVESTMENT GROWTH - Pension Plans are generally tied up with the stock market so, of course, there would not be any type of guarantees for it. However, over the period of time they mostly increase. I was very satisfied and astonished at the same time to find out that one of my Pension Plans raised by around fifteen percent in the previous year! That was wonderful.
So, let us assume that all three of the mentioned above are in the right place and you are able to contribute $100.00 a month too. Then, you it would actually end up with $1200.00 from your expense/pocket, $600.00 would be your employer's contributions, and $540.00 would be in the tax savings (using around 30% rate). As a substitute of spending the Pay Tax return, you can add it to your Pension Plan for even more progress. Then, using only 5% as a likely growth rate, you can make an extra $117.00. At the very end of the twelfth month you would be left with the sub total of $2457.00 only by investing $100.00 each month.
Imagine what would be the result if this process is compounded for over 10 to 20 years instead of a single year. That would be great for sure and you would be able to manage your finances in a much better way than ever before actually.
Decide what are you willing to leave that costs approximately more than$3.00 per day? That will ultimately ensure you the peace of mind plus better and secure financial future for you and your family. You need to start this process it from today because you should not waste your money by each passing day and your delay can actually be harmful. So, make the right choices today and have a better future!
George G. Mahon
Adress : 1696 Circle Drive
Houston, TX 77077
E-mail : GeorgeGMahon@jourrapide.com
Phone : 832-486-7548