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Business is booming.

In a Forbes article from December 2021, a cited QuickBooks study found that “17 million people will ‘make the leap’ to start a new business in 2022.”

Why is entrepreneurship suddenly so desirable?

Because social media makes owning your own business look easy.

But you and I know that’s not the case.

Business and entrepreneurship expert Mel Abraham described this effect as the “façade of freedom.” In effect, social media creates this false pretense that by simply starting a business and following a passion that money will follow, enabling anyone to live the life of their dreams. But is that all it takes?

Wealth is not something you gain, it’s something you build.

No matter where you are in your entrepreneurial journey, you must begin to build wealth. How can you ensure that your business venture is both a money-making machine and a means for you to build wealth?

Invest

Many are hesitant to invest until they are making above a certain threshold. To illustrate why this thinking is damaging, consider a person who has just been told by a doctor that they are 50 pounds overweight. Can you imagine this doctor advising them to wait until they are 100 or 200 pounds overweight before they take steps to lose weight? Of course not.

Similarly, don’t wait! Invest money now regardless of your income to reap long term benefits. As your income increases, though, make sure the amount that you’re investing increases too.

Actionable tip: Create a low interest investment account or get a separate savings account to serve as your investment account. Commit to putting as little as $5 a week into the account. Better yet, schedule the money to be withdrawn and deposited automatically to make the process easier!

Plan

Building wealth is not just about making money – it’s also about keeping more of the money you have.  A regular review of your cash flow can help you to see where your money is going. Is it going to necessities? Wants? Negotiables? Can some of these be eliminated or at least minimized so that more can go to investing or other areas? Hiring a bookkeeper can be a tremendous time saver in this regard. Contact us if you’re interested in our bookkeeping services.

Additionally for many business owners, a massive chunk of their income goes to taxes. Fortunately, there is a solution for that – tax planning. Tax planning can significantly reduce your yearly tax payment by helping you make smart decisions with your hard-earned money. By implementing tax planning strategies, you’ll come to build wealth now and long into your future!

If you’re looking to go beyond simply making money by building wealth, give us a call at 203-698-7700 or email reception@alfanocpa.com. We’ll schedule a complimentary consultation for you and David Alfano, CPA and financial advisor, to meet and discuss your financial goals!