Many of you were surprised that there were tax law changes included in the Emergency Economic Stabilization Act of 2008 because most of the coverage has focused on what the Act is intended to do for the economy, specifically, helping the credit markets get back to lending.
One question I have been getting recently is...
How do you keep your wealth strategy moving forward when it's more difficult to get that business loan or real estate loan?
If you have ever heard me speak about creating and building permanent wealth, then you know that I use leverage as a fundamental tool to build wealth. But, remember, that leverage comes in many forms. Loans are just one way to use leverage in a wealth strategy.
Here are 3 Ways I Use Leverage in Wealth Strategies That Don't Involve Loans
- #1 Leverage Other People's Contacts -
When I speak with people, whether it's clients, prospects, colleagues, friends, participants at seminars or my vendors, I am constantly thinking...and asking...who do they know and who can help me with A, B or C.
Part of the challenge behind building wealth is the time it takes if you do it all yourself. But on the other hand, it may sometimes seem like there isn't anyone you know or you could find that can help you with exactly what you want.
Here is a strategy I use every week.
I make a list of 5 tasks I will get done during the week. Each one of these tasks impacts my wealth strategy - some in a small way, others in a big way. With this list, my objectives are fresh in my mind. Then, I think about the people I will see in the coming week and who they may know who can help me with my tasks.
- #2 Leverage Other People's Knowledge -
A question I get asked on a regular basis, by clients, by prospects, by seminar participants, is "Do I need to get an attorney involved?" We may be discussing setting up an entity, or forming a business partnership, or buying or selling a piece of real estate. My answer? 95% of the time my answer is YES! Even if it ends up being only a 5 minute conversation, that 5 minutes could end up saving you hours of your own research, plus, I find that when I talk to an attorney, I learn something that I can immediately apply to my wealth strategy.
Whether it's an attorney, a CPA, a real estate agent or the specialist in your industry, all of these experts have been obtaining knowledge for years, and it is there for you to leverage. Plus, it's one more contact with contacts of their own that you can leverage!
- #3 Leverage Your Taxes To Build Your Wealth -
Taxes are often overlooked as a tool to build wealth. Here's how it works. Taxes are typically a person's single biggest expense. If a person is able to reduce their taxes by $10,000, that $10,000 could create hundreds of thousands in wealth over time.
Now consider the impact of saving $10,000 every year.
Imagine if you reduced your taxes by 20%, 30% or even 40%, every year. Then, imagine the wealth you could create by leveraging your tax savings into wealth building assets?
These are just 3 ways to use leverage in your wealth strategy. The list can go on and on because once the idea of leverage beyond loans is unleashed, the possibilities seem limitless.
How Will You Use Leverage?
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Tom Wheelwright is not only the founder and CEO of Provision, but he is the creative force behind Provision Wealth Strategists. In addition to his management responsibilities, Tom likes to coach clients on wealth, business, and tax strategies. Along with his frequent seminars on these strategies, Tom is an adjunct professor in the Masters of Tax program at Arizona State University. For more information, visit
http://www.provisionwealth.com
