Expanding Your Worth: Beyond Saving
Sep 05, 2024In this episode, Shannon addresses a critical shift in mindset for business owners: moving beyond just saving on taxes to truly growing your business and expanding your worth.
Shannon starts by explaining how her journey over the last five years has focused heavily on tax-related questions from her listeners. While tax-saving strategies are important, she makes a significant point: "You cannot save your way to wealth." Instead, she emphasizes the importance of focusing on growth and opportunity.
Many entrepreneurs default to prioritizing tax avoidance. While understanding and applying tax strategies is valuable, Shannon argues that if this focus detracts from growth and innovation, you're essentially "stepping over dollars to pick up dimes."
She highlights the contrasting mindsets of an 'earner' versus a 'saver.' An earner's mindset is about chasing growth and opportunities, working to outpace expenditures. Shannon acknowledges that while you can't solve everything through sales alone, an overemphasis on cost-cutting limits potential. Your financial strategy should be balanced, much like an investment portfolio.
Shannon elaborates that our goal with taxes often involves making ourselves "look a little smaller." While strategically sound, this shouldn't overshadow activities that drive real growth. The aim should be to make enough money so that taxes become a secondary concern.
Shannon shares her own experience of moving to Costa Rica, a decision driven not by tax reasons, but by lifestyle choices like weather and culture. This lifestyle arbitrage demonstrates that focusing on joy and personal fulfillment can result in financial benefits as a byproduct.
She also discusses the importance of practical tax strategies. For example, hiring your kids can teach financial literacy and reduce tax liabilities, but it's effective mainly under specific circumstances. Misapplying such strategies can result in cumbersome paperwork without meaningful savings.
As entrepreneurs gear up for tax season, Shannon advises proactive planning over last-minute tax-saving strategies. Predicting your tax liabilities months in advance can reduce stress and offer better financial control. This approach places you in a position to manage your finances more effectively, ensuring tax strategies are meaningful and impactful.
In summary, if your main focus as an entrepreneur is to minimize taxes, a mindset shift may be needed. Instead, aim to maximize joy, opportunity, and genuine financial growth. Let tax savings be a beneficial byproduct, not the primary goal.
What you'll hear in this episode:
03:44 Strategic approach needed for business growth.
09:44 Hiring teenagers for high value tasks is worthwhile.
11:12 Plan better, reduce tax liability, empower sooner.
If you like this episode, check out:
Silence These Voices In Order to Succeed
How Can You Shake Off Business Boredom and Thrive?
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
