7 Financial Hacks For Promotional Marketers…And How To Keep Uncle Sam Loving You!

Written By: Edwin J. GoitiaA Promo Rockstars Publication

#1 IC Financial Hack: Setup a Business Checking Account

• Simply going to your local bank and asking if you could open a business banking account will allow the government to see that you are in business for yourself, a self-proprietor and looking to create more business in the US economy. These things are music to the ears of the IRS and US economy.

• It is very easy to open a business account (proceed to #2 before opening this account), however, make sure to shop around, as banks usually have bank fees to have a business account. Typically what is required is a minimum balance requirements, attaching a credit card for overdraft protection or minimum monthly spend (to waive the monthly fee), or direct deposit. If you shop around, you can typically get a good deal.

• As an example, Chase Bank only charges $15/monthly to maintain your business checking account, but there are plenty of banks out there to choose from. Either way, even if you pay the fees, you can write it off on next years taxes as a business expense.

• Finally, having a business checking account makes end-of-year expense reporting much easier. Most banks will allow you to print a single year-end statement to submit to your tax accountant or CPA.

#2 IC Financial Hack: Get a DBA

• Simply going through the IRS website and registering your fictitious name (usually your legal birth name) or business name ("Doing Business As") will also give you official self-proprietor status and allow you to have the same benefits that self-employed individuals do.

• Once you have completed this step (some banks offer this service for free or nominal charge), you can start to list your DBA ("Assumed Name", again could be your name) on most contracts or applications with talent agencies. Agencies typically give you an option to list it and therefore will report your earnings to the IRS as if they are working with a business, versus an individual. Talk about a win-win!

• Visit the IRS website online to learn more.

• http://www.sba.gov/content/register-your-fictitious-or-doing-business-dba-name

#3 IC Financial Hack: Start a Roth IRA

• The governments LOVES when individuals invest their retirement savings into a ROTH IRA.

What is a Roth IRA? A Roth-IRA is contributions that are pre-taxed, meaning you pay taxes up-front while you are young, and withdraw contributions during retirement tax-free.

• Roth IRAs have grown immensely in popularity over the past several years and is a popular choice among young adults when considering saving for retirement.

• With the current year of 2014, individuals can contribute up to $5500.

• Although you do get taxed up-front, it acts as a double-edged sword and is a huge tax advatange come tax season.

• To learn more, visit this simple article that lays out the differences between a traditional and Roth IRA!

• http://en.wikipedia.org/wiki/Roth_IRA

#4 IC Financial Hack: Consider an HSA

• Possibly one of the coolest ways to store away money in a [slightly undercover] way that is also a big tax break advantage & that the government loves is through an HSA (Health Savings Account).

• Are you healthy and hate spending money on health insurance? We do too! That's why we recommend this approach.

• A Health Savings Account is essentially a savings account that is attached to a high deductible health insurance plan. You buy a low-cost, high deductible insurance plan, open an HSA, store away funds for health care visits, emergencies, and so on and so forth. The following are the 2014 contribution limits:– $3,300 for individuals– $6,500 for families

• Now, here is where the true beauty lies. • You can actually hack your HSA to act as a

retirement account. What the? That's right. You heard me. If you are healthy and only do your yearly visits and maintain an active lifestyle, your account turns into a rollover account, building in value and practically being untouched until you retire.

• Then what? You transfer the funds to a Roth IRA or similar retirement savings account and invest the funds to further grow your savings!

• According to MadFientist.com, you can save up to $800 in tax burden each other by maxing out your HSA! Amazing!

• Read more here to learn how you can hack your HSA. http://www.madfientist.com/has/

• Download their podcast, too. It's full of great content in regards to savings and retirement.

#5 IC Financial Hack: Create a 3-6 month Emergency Savings Account

• There is nothing better than putting money away for emergencies, especially when you are an IC (you never know when you will have good months/bad months right?!)

• What we have found is that not only will putting money away do an incredible job of protecting you, your family/loved ones, and your future, but it will also give you peace of mind.

• What if you could do it in a way that earns you money? More so than traditional banks?

• Our favorite savings website is http://www.SmartyPig.com, where you will be saving 1% interest and your funds are always liquid. You can even create separate goals for separate savings accounts!

• Where most banks are only paying 0.01-0.08% interest, SmartyPig leads the way. Also, they give you the option to cash out in gift cards from leading retailers AND get a bonus cashback on top of it for doing so!

• Check them out and sign up for a free account (they have an app too!). You can set it to automatically withdraw funds from your bank account or you can manually do it yourself. You'll have fun with it, we promise. (Plus, it's pretty fun to see your money grow too!)

• Add me on Smarty Pig: https://www.smartypig.com/loves/promorockstar

• On a side note: If you're more traditional, you can always go with a CD or a regular savings account. Typically, having a savings account makes your checking account free :)

#6 IC Financial Hack: Outsource Your Life

• It's interesting how things have changed over the years.

• Before the 2000s, outsourcing may have been seen as either luxurious to most or hard to fathom.

• Nowadays, with the sharing economy boom, everyone can outsource in little ways.

• As you may already know, being a self-proprietor (as we mentioned in #2 above) gives you tax advantages when it comes to claiming business expenses.

• Apps such as Uber (transportation), AirBnb (accommodation rentals), DryV (dry cleaning/laundry pick up/drop-off), and especially Task Rabbit (outsource small tasks) have made it easy for the average consumer to outsource anything.

• Therefore, the more you outsource, the more jobs you are creating, and therefore, the more money you are putting back into the economy. The more you outsource, the more the government will work in your favor.

• Of course, keep track of all these expenses so that you can claim them on your deductions come tax time next year!

• An interesting read by Tim Ferriss on outsourcing life: http://fourhourworkweek.com/outsourcing-life/

#7 IC Financial Hack: Get An Education...the Non-Traditional Way

• And finally, the biggest one of all...education.

• Uncle Sam loves when self-employed folks get an education...hands down.

• However, that education does not have to come in the traditional sense.

• Education includes the following:– Certifications: CDL course, liquor handling license,

manicurist licenses, cosmetology license, bartending license, etc.

– Membership Dues: Professional organizations, etc.– Online courses: Websites like Udemy, AppSumo

and more are selling one-time courses that are self-taught.

– Coaching: Hired a coach? Write it off!– Books/CDs/Audio: If you are reading or listening to

resources and learning at the same time, that is education.

• The list goes on and on, but you get the point. Anything that contributes to your professional development is considered a tax-advantaged write off. So take advantage of it!

BONUS IC Financial Hack: Travel More!

• Travel hacking has been a surging hobby and interest in the last several years!

If you do it right, you can literally travel while you work, and also claim it all on your taxes!

• Airfare, hotels, mileage, car rentals, fuel, taxis, food, excursions. You would be amazed what you would spend in a year traveling constantly as a promotional marketer. And furthermore, if you are a sole-proprietor, even better!

Just make sure you are doing things smart, and not abusing this privilege. Consult with a tax professional to find out what you can and can't claim on your travels.

• Plus, if you can expense things like TSA PreCheck, Passport fees, and anything that contributes to your traveling more efficiently, safer, and with ease (yes, that includes baggage checks and airport lounges!), then make sure not to miss out on those opportunities to reduce your tax burden for your taxes next year!

Join our partner Travel Hack community at https://www.facebook.com/TravelHackLikeAPro

Thank you!

Thank you!

• If you liked this free resource, please feel free to check out our website for more info.

• http://www.promorockstar.com/group

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BONUS

• Would you like to sit down and learn how you can set yourself up for financial freedom in the future?

To be able to take care of your family and secure their future as well?Give me a call and I can walk you through several options that fit your situation.Call 630-888-7298 if interested. Thanks!