Member-only story
That One Skill to Master to be a Personal Finance Ninja
And you don’t need nunchaku.
Do you think you need the latest trendy budgeting technique? To give up on your daily macchiato? To read candlesticks patterns and identify bullish engulfing (yes, )?
NO!
An easy choice?
Meet Sara and Betty. For some reason, they both have 100.000€ to invest.
Sara buys a flat and rent it, having after one year 5.500€ of income.
Betty prefers a savings account and gets 4.000€ of income.
With 5,5% of gain versus 4%, Sara is the winner!
Wait… she forgot about the 30% tax on rent, while Betty’s account is tax free. Sara has to pay 1.650€ of taxes, leaving 3.850€ so 3,85% of gain. Now Betty is the winner! Conclusion?
Always consider the tax implication on your investments
The case of taxes
I’m not discussing about the good or bad of taxes. That may be another story. I even believe taxes are mandatory for a functioning society.
I’m not telling you not to pay your taxes (this is illegal) or to systematically lower your taxes (you may choose wrong investments…
