Dr. Lynn Richard emphasizes the importance of being a sole proprietor since there are many tax deductions that people miss when they do not own a home-based business. Deductions that many people miss are in the tax code but are not used by some preparers. For instance, rather than give allowances or buy your children gifts for birthday and Christmas, hire them as models for ads, bookkeepers, or taskers and pay them a tax-deductible salary. Home-based business owners can use these expenses along with business travel and home deductions.
You have to learn the rules of the game:
One stream of income is bad for your health.
Run your home-based business with the intent to make a profit, and be organized.
Live the 10/10/30/50 lifestyle: 10 tithes, 10 save, 30 cash in pocket, 50 bills. If you have more than enough, eliminate your debt.
Dr. Lynn stresses the importance of educating yourself financially.
“Spend less money, get more money, and get your money back.”