This year I attended my first FinCon! For those who don't know, FinCon is a Conference for Financial Influencers and Brands. Attendees go to FinCon in order learn how to better connect with their audience, improve their craft, and of course find ways to increase their income doing the things they love! This will be my first FinCon, and first ever conference I've gone to for personal reasons. I've worked at conferences before, so I'm familiar with the general atmosphere of an event which is pretty much all day. Now I will get to experience it from an attendee's perspective, although I have a good handle on what to expect.
But FinCon is not like your typical conference. At FinCon everyone isn't dressed in their $500, $1,000 or more suit or a dress with shoes to match the price tag. From what I've seen, and heard from listening to FinCon's podcast, is that people come in what they feel comfortable in! For some that may very well be a multi hundred or thousand dollar suit, while for others jeans and a t-shirt suffice. The expectation is for you to be authentically you, and not dress to impress others just for business reasons. I like this approach, even though I understand why it is the opposite for many business conferences. But this is different!
I honestly don't know. I just want to soak in all the knowledge I can, meet all of the people I can, and enjoy spending time with other people who enjoy sharing knowledge which happens to be geared towards Personal Finance. That's what this is about for me, and I suspect many others attending. There are many YouTube content creators and bloggers, a few of which I subscribe to or follow on Social Media, like ChooseFi, His & Her Money, Graham Stephan, and Ryan Scribner just to name a few, which I know are in attendance
Before AJ Mobile Money
Let's first start off with a disclaimer. I am not a tax professional, and I do not provide tax, legal, or accounting advice. Readers should consult their tax advisors! There...I said it!
However, I thought this would be a fun math experiment. Is it possible for a middle class family of 4 to optimize their federal tax to the point where they won't owe anything at the end of the year? I think there are many ways to do this if you plan correctly! In the past I've used my income from the previous year, plus making adjustments to my W-4 withholding to try and approximate how much tax I will owe at the end of the year, so that I can get my tax bill or perhaps a refund that is as close to ZERO as possible!
BIG TAX REFUNDS & BIG TAX BILLS ARE FOR SUCKERS
First let's discuss why getting a huge refund at the end of the year is not "The Move" at all. When you receive a refund, this means that you've OVER PAID what you OWED in taxes for that year. You're essentially providing the government with an Interest Free Loan! When is the last time someone...anyone, especially an institution given you an interest fee loan? For 99% of us that answer is never! The closest you'll get is a credit card balance transfer, and most charge you a fee upfront, with no interest for a certain time period. Typically 6-12 months. After this time period, if you haven't paid off your card, you will be charged interest for the remaining balance as if you were being charged interest the whole time period. Banks are in the business of making money, so a loan is a means of making money off of your need to access cash.When you pay taxes, you are providing cash for the government to take care of the country or states needs. Now it may not be as efficient as we would like it to be, but that is its purpose.
Let's start with a rough example: You or your family unit provides the government with $1,000 of tax revenue each month, which adds up to $12,000 total at the end of the year. Of that $12,000, let's say you really only owed $9,600. That equals $2,400 at the end of year. Unfortunately that money had no opportunity to compound in order to help your money grow in a savings account or in investments. If instead, you could figure out a formula where you pay the exact amount of taxes you will owe, after taking into account Tax Deductions and Tax Credits, then you could put that money in a savings account or invest it throughout the course of the year. Let's assume you are a tax genius, or know one, and you were able to pay exactly $9,600 throughout the course of the year. What would the $2,400 turn into?
AJ Mobile Money
Husband | Father | YouTuber | Former ATLien
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