Not only are we entering into the thick of tax season, but based on our political situation, we could be staring at another federal government shutdown on Friday.
Which means, well … we don’t know exactly what it will mean except that God bless you if you are trying to get help directly from the IRS these days. Not only are they still recovering from the PREVIOUS shutdown, but the day after Presidents’ Day happens to be their busiest day of the year, every year — and it just so happens to fall right at the beginning of the potential shutdown.
Yikes.
The good news is that working with a San Diego tax professional provides you options.
Not only do you not have to deal directly with the IRS (we do that for you), but if something did come up requiring their input, we have a “Practitioner Priority Line” that isn’t available to those poor blokes who try to go it alone with off-the-shelf software.
Furthermore, last week’s filing numbers data (compared to the previous year at this point) indicates that a lot of people are biding their time to get started on their taxes.
Let’s not have that be you. We’re here and we’re ready to get cranking on your behalf.
(And, of course, your friends’ behalf too: have I mentioned that referral clients are our favorite kind of clients? Please feel free to send your friends our way … despite how busy we are, we make a point to make room for friends referred by our clients.)
This week, I’m putting on my “financial coach” hat to encourage you to perhaps approach your finances in new light. Many of our San Diego clients have many of these principles pretty well nailed, but this might push you further into a more profitable direction…
Darryl A. Hale, EA, MBA, MST’s First Key To Building Wealth
“Patience is bitter, but its fruit is sweet.” -Aristotle
There is no shortage of financial advice out there – online of course, or from your second-cousin, Karl. But not all advice (especially from Cousin Karl) is valid for everyone.
The good news about having us in your corner, of course, is that I can answer questions about your specific situation that you’re going through. So if you have anything pressing, please do give me a call and I’d be glad to help. (858) 549-9666
But for all the advice out there, a few guiding principles undergird anything that is worthwhile — and today we discuss one of those: delayed gratification and how it will earn you greater wealth. Now I’m not guaranteeing you a lifetime of riches … I’m simply stating the fact if you can be patient, it will pay off in the end. Here’s how you should begin…
Kick Debt to the Curb
Although some debt can be useful when buying a house or in certain business situations, it often represents a reduction of cash flow. Consider ways you can eliminate any existing debt, and methods which would enable more cash spending. It takes a little extra effort, but ridding yourself of debt is typically the first step toward building wealth.
A new TV might be fun today, but what if you took that money you were going to spend and put it toward debt-freedom? Choosing this option ensures the TV will come someday … and we guarantee it will be bigger and better when you’re financially ready.
Thousands of Small Decisions. Not a Few Big Ones.
This is where financially-based delayed gratification is tough. And it feeds off the TV example.
What would it look like, instead of saving 6-10% of your annual income, to save 20%, 35% or even 50% of your income? Think of your wealth after saving for 10+ years?
You might be thinking, “How is that fun for anyone now?” But I’d argue that it can actually be a lot more fun. Why? It means creativity can take place. Instead of going out to eat at a fancy San Diego restaurant, make dinner from home and go eat somewhere scenic in town for a picnic (where there’s nobody to tip). That’s one example among thousands, of how living below your means helps you save for the future.
The Power to Invest
If you are new to investing, or are thinking about investing in the near-future, I usually like to recommend an undervalued (and therefore likely to grow) blue chip stock (not likely to collapse), with a history of above-average dividend yields (steady cash flow).
Start there. Let’s not worry about boiling the ocean just yet.
And if you don’t know much about investing, that’s OK! This is part of the delayed gratification piece as well. It takes time to research and converse with trusted sources. I’d love to chat about this topic, and point you in the right direction toward strategic investing.
Play the Tape Forward
This bit of advice is not as “practical” per se, but it’s still incredibly valuable in terms of entering the right state of mind to build wealth.
With every purchase you make from here on out, I want you to play the tape forward in your mind, and think about how that purchase will affect your life. Every little purchase (a smoothie) all the way to the big ones (a week-long trip to Europe) will have an affect on your financial health. Am I saying to not have a good time?
Quite the opposite.
I want you to have the best time in life (eventually 🙂 ), while setting yourself up to help others and make a healthy financial impact on the world.
I went this long without mentioning the marshmallow test, but come on, people … we’re talking about two marshmallows or one. It’s as simple as that.
If you have any other methods you recommend to delay financial gratification, I would love to hear them from you, and to pass them on to others who are making strides in this area of life. It is worth it, one million times over. Feel free to email me anytime.
Warmly,
Darryl A. Hale, EA, MBA, MST
(858) 549-9666
Top Hat Tax & Financial Services