Many business owners are working so hard in their business that they don’t enjoy the benefits of being the business owner. If you’re letting the life span of your business overrule the business of living your life, then now is the time to start turning the tides.
Finding ways to make your business work harder for you and your family is why we started our businesses in the first location. If your business is obstructing your attempts to enjoy life with family and friends, this is an issue. All of us know a whole lot of work goes into creating a thriving business, but if it’s consuming all of your time, energy and energy… is it worth it?
Why this coordination is important:
Each time you find new ways to help your family benefit from the efforts of your business, your life balance and family life improve.
If your business consumes your whole life and your family life suffers for this, your partner and children might actually resent the time that you spend there. Even if it gives a lot of income, the value of social and family life could be sacrificed.
Make your business assist you, your family and your social life. You’ll be happier, healthier and live a more rewarding life.
5 Strategies To Consider:
1) Consider paying children’s education expenses as salaries for work
Many small business owners make a fantastic living and have higher than average incomes. This may lead to their loved ones to qualify for little to no school financial aid if their children are ready to attend college.
If you will have to pay for it anyway, why don’t you pay your kids to help out in your small business? Pay them as an employee, contractor or consultant to perform work for you and your business.
If you pay them enough to pay their college expenses, you’ll be given a tax deduction for the cost of their college education by devoting their earnings from your business. They’ll be responsible for helping out with your business and they could surprise you with how much value they add to the business. New ideas, new technology, a new and distinct viewpoint may be just what your business needs.
2) Schedule family holidays around business travel
When a family vacation is something you’re considering, consider organizing it about a work trip. Do you have to go to conventions, trade shows, seminars or other training for work? If you drive to visit all those business activities, your gas mileage is tax-deductible no matter how many people you have in the car with you. Does this conference or training excursion ask that you stay in a hotel? Your hotel expenses for that night may also be allowable regardless of whether you have your family with you from the area.
Scheduling family holidays around business travel can make it more manageable. This permits you to enjoy time with your loved ones or friends while also working on your business. Speak with your spouse or family to coordinate both.
3) Manage taxable income and year-end purchases to lower tax bracket
Operating and having a business requires seeing the big picture and preparation for the future. Your business will probably require new or upgraded equipment, computers, other technology, etc. to function smoothly and efficiently. Be able to predict these needs.
This is where you organize your tax situation with these requirements. If you are aware that you are needing new equipment, computers, etc. in the not too distant future, take a look at your taxes. If you’re taking a look at a higher tax bracket for the year you might want to make these essential equipment purchases sooner than anticipated. Or you might choose to wait until next year. This requires consulting with your business advisor to ascertain the best option.
4) Use Retirement Plans
Think about reducing your current income using a Retirement Plan. Not only can this help you once more for taxation purposes, but it is also helping you and your family’s future. So many small business owners fail to put retirement needs in their priority list. Frequently we hear “my business is my retirement plan.” Putting all your eggs into one basket can be extremely risky and even dangerous for your future.
You might wish to consider adjusting your wages so as to account for contributing to a retirement plan. There are a number of ways to rearrange things to make it feasible to contribute. The tax savings can help warrant the ringing of your income to a retirement plan. Make certain to check at all the various options and scenarios since this will provide additional clarity.
Also in the event, you choose to provide your employees with a retirement plan, this will help attract quality workers, keep them and allow for additional tax savings for any company match. You may even have the ability to take a couple of days off without worrying about the business functioning without you! Think about how that would make it possible for you more family time. Speak with your financial adviser to clarify your choices and the benefits to you, your business and your loved ones.
5) Consider adding or using a House office arrangement
There are lots of benefits of utilizing a house office arrangement for you, your business and especially your loved ones. If you are currently renting or paying for office space it could be possible to create or utilize office space in your home. With technology now, working from the house has gotten much more functional.
If you are solely phased out of your house, this provides for another tax advantage. You’re ready to write off the portion of your mortgage which accounts for the square footage of your home office. Also, any improvement expenditures, internet expenses, utility expenses or taxes which are directly linked to your home office may also be deductions. Finding ways to lower taxes is vital for a small business owner.
If your line of work makes it not possible to be based entirely out of your property, even just working a day or two from home will let you spend more time around your loved ones and include some flexibility to your work schedule.
Here are 5 ways to help your business work hard for you and your loved ones. Share your thoughts with your partner, kids, and business advisers. In each case that we have implemented these strategies correctly, the rewards have been three-fold. Family life enhanced, your work-life balance improved, and the business also benefited.
You have worked too difficult to get your business to where it is at… It’s time that your business returned the favor!