I talked to my CPA yesterday…
Anything to do with taxes and accounting, for me, is like nails on a chalkboard. I know taxes are a necessary evil but I still resent having to take a portion of my hard earned money and give it away to the government to mis-spend.
It got me thinking about another tax we pay as entrepreneurs.
It’s called Success Tax but it works quite a bit differently.
Regular Tax vs Success Tax for Entrepreneurs
With regular taxes, you pay those taxes AFTER you earn the money.
With success tax, you pay it BEFORE you earn the money.
Success tax isn’t always money, although in many cases it is.
There are many examples of success tax…
- Months or years of struggle before profits are realized
- The inner turmoil of having to overcome crippling fear
- Having to deal with heartbreaking rejection
- Losing large sums of money before profits are realized
- Going through a huge learning curve before you figure it out
- Being ridiculed by others and told you’re crazy
- Enormous levels of frustration because, try as you might, you just can’t seem to make things work
- Feelings of helplessness and despair because you feel like you’re just not cut out for it
Why You Should Pay the Success Tax to Achieve the Success
Here’s what makes the success tax even more frustrating.
Sometimes you start making money and it seems like you’ve gotten through the tax phase, only to be slapped in the face with it all over again.
I struggled for five years before I got full-time as an entrepreneur. At 25, my income blew up to $40,000 per month. I felt like the struggles were behind me and that I had finally made it…
Then at 26 I found myself $100,000 in debt.
But because I was willing to pay the success tax again, I continued on and became a millionaire at 29. I had a company that was growing consistently month over month and on track to do $10 million in total revenues for the year.
Then I got hit with $500,000 in fraudulent charges and it put my company into a tailspin. Six months later I was $750,000 in debt.
The success tax almost knocked me out of the game. But because I was willing to pay the tax, I continued on and my income more than tripled over the next 18 months and allowed me to earn far more money than I ever had.
The reason far too many fail is because they don’t understand this concept of success tax.
Most will never achieve the success they’re fully capable of achieving because they’re unwilling to pay the tax before they achieve success.
Then another huge group of entrepreneurs fall out because even after they achieve some amount of success, they’re not willing to pay the success tax again.
My friend, paying the success tax is part of the game. If you’re unwilling to pay it, you’re unwilling to succeed at the highest levels.
I hope you remember this concept when you feel frustrated, defeated and like all hope is lost.
Education: Best Strategy to Reduce your Success Tax
The good news is, just like there are strategies to reduce your taxes, there are strategies to reduce your success tax.
The success tax reduction strategy is called education.
When you learn more than other entrepreneurs, you cut your learning curve dramatically. And while no amount of education will cut your success tax to zero, you can sure as hell pay a lot less!
Invest a small amount of money in education, or you’ll pay a lot more in success tax. The great news is, you get to choose.
Let’s do BIG things!
Top Network Marketing Speaker and Trainer
You may also READ our previous blog post about “How to Become Wealthy: Tip from a Millionaire Marketer”
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