In many countries April is a personal tax month.
You must calculate, report and pay any difference between what you had already paid to the state and what you still owe to it.
Sometimes, you calculate, report and get money back, but it’s only little sometimes.
In opinion of many, taxes are bad.
It’s the state reaping us off the hard earned money. That’s why the mindset association with taxes that many of us have is: bad, frustrating, repelling.
Not to mention the fact that many of us have already spent the extra money to be paid to the state.
Let me be controversial, however, in trying to change your mindset (what you think) about taxes.
It’s something I did a couple of years ago and since then, every April, it helps me focus more on the pleasure of the beautiful spring weather rather than the pain of taxes.
Here are three surprising reasons why paying taxes can be good.
1. You earn
When you have tax to pay, it means you earn money.
The more tax you have to pay, the more money you earned.
2. You contribute
When you pay taxes, you contribute to society. It’s YOU (not the state) who finance education, culture, health care.
Yes, the big question is about the efficiency of your funds being used, to which cause they finally go and how differently you could employ them yourself, but let’s assume that your taxes go to the good cause and are spent well.
3. You learn
Taxes can make you develop your financial acumen, skills and discipline.
“Be aware of how finance and taxes work” is a key phrase here. “Know your cashflow” is another. “Be prepared to pay taxes” is yet another.
When you have to pay taxes, you lose something, which most of us consider bad. But, when you learn:
- how to manage your tax deductible expenses,
- how to set aside what I call a “tax fund” where you store the money that will become tax,
- how to make this money work for you by interest,
… you actually gain.
Nice, isn’t it.
Even if it is too late this year (in Poland, taxes are due tomorrow), change your mind-set and system-set for next 12 months.
You will see how different “paying taxes” will be then.
Make a tax-happy day 🙂
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