A good way to think about this equation is that it is a representation of how much your expenses exceed your income.
Expenses are the big thing, but income is the second thing, and it is the second thing that really matters. If you know exactly where your income is coming from, that doesn’t really matter, but if you don’t know exactly where your expenses are coming from, then you probably don’t want to be in business.
Expenses always matter, no matter what.
The amount of taxes you pay is determined by the amount of income you have. There are two separate kinds of taxes: Federal and state. The federal government taxes you on your income. In comparison, the state government taxes you on your personal property. Taxes on your income usually come in the form of income taxes. State taxes are much more difficult to get, and sometimes they can be the most expensive.
The key to understanding how much taxes you will pay is to look at your total income. If each dollar you earn generates 1% of your total income, that means that every dollar you earn generates about $1 of tax if you are a typical, low-income, low-income person. So if you make, say, $20,000 per year, that means each dollar you make will generate $20 of tax.
But if you take out a couple of dollars from each dollar you earn, you can easily come out ahead. If you have $10,000 yearly income and you earn $20,000 a year, you can easily come out ahead by eliminating about $10,000 from your total income. So, for example, if you have $10,000 income, you can easily come out ahead by taking out $1,000 from each dollar you earn.
Of course, taking out money from a high income person’s bank account is a little tricky. But it can be done, because if you add up all of the interest that a standard bank account pays, it will easily cover the cost of transferring money from your bank account to your checking account. Just make sure you’re using the right transfer method, like a credit card and not a debit card.
For example, a student who earns $6,000 a year could transfer $6,000 from her savings account to her checking account, and that would cover her tuition costs. That, of course, is only an example, because if you can transfer money from your savings account account to your checking account, you could actually transfer money from your checking account to your savings account.
This is true of many things. For example, if you only send cash for rent, then you could transfer the entire amount from your checking account to your savings account. Or, if you only make $500 per month, then you could transfer $500 from your checking account to your savings account.
All the other things that we talked about in the title for the first time were the very same thing. We don’t do a lot of “looking for” stuff in the book and the book tells us nothing about what we’re doing or why we’re doing it.