Financial Planning Strategies - 2 Keys to Plug Your Money Leaks

Are you where you want to be financially? Or are you moving in the right direction at least? Chances are that you're not there yet, or at least not getting there as quickly as you'd like. Read on for two more keys to taking control and achieving your financial goals. There are actually six things you need to do to get on the right track financially.

The first is to set goals and create a comprehensive plan to get you there. The second is to keep that goal in mind as you make investment decisions. But that's just the beginning. The next set of two dealt with protecting your assets, which you have to do while you're alive -- and after you die.

Here is now the last set of two of the key elements you need to deal with before you can be sure you've covered your bases: Both of them deal with plugging your money leaks. Yes, you're leaking money left and right. You're probably throwing away thousands of dollars every year in interest payments, and I would bet you're paying far more in taxes than you may need to. So let's look at those last two in detail:

1. Get Out of Debt

Debt is the greatest barrier you're likely to have to your financial freedom. The interest you pay on the things you buy is simply a transfer of wealth from you to the financial institutions.

What this means is that you're paying far more for the things you buy than they are worth -- and you may be paying for them months or years after they've outlived their usefulness. This is no way to get wealthy. In fact, it is mathematically impossible to increase your wealth by paying more for things than the value they actually bring to your financial well-being.

If you have a mortgage on your home or other income properties, that's fine. This may make sense in a well-designed strategy. But everything else should be owned outright. And, cut up the credit cards-they are not your friends.

Living on credit has become the American Way and, ultimately, it lowers the standard of living of those who depend on it. It guarantees that we'll remain in debt forever, unless we take drastic steps to eradicate this cancer from our lives.

2. Get Control of Your Taxes

How much are you paying in taxes? I bet that you're paying far more than necessary. I would even argue that income taxes are to some degree voluntary in nature because you can control how much you pay. This may be news to you, but read on to see how it works.

The Internal Revenue Code is full of tax benefits that you can take advantage of as a business owner. Of course you'll need to know about them and also know how to structure your affairs so that you can benefit from them.

Every dollar you pay to the IRS unnecessarily is one dollar of your hard-earned profit that is not going toward your own goals. Talk to a financial advisor who does advanced planning in this area to learn of some of the opportunities that may be available to you. And there are some really good ones.

This is one money leak that you can plug immediately. Doing so will allow you to invest the money you save, or, as the case may be -- use it pay off your debts ever more quickly. Either way, plugging your money leaks can quickly put you on the fast track to growing your wealth.