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Improving your annual income

Updated on June 2, 2011

Do you really know your annual income?

Many people complain that they don't have a high annual income, and therefore they don't try to achieve the things they love in their lives. This is a tragic situation, because if you keep complaining and avoid the reality of your financial situation, it can eventually get even worse. It is at the reach of anyone to improve their incomes with strategies such as Internet businesses, affiliate marketing, real estate, and even online surveys.

You have to start by giving a fair look a look at your financial shape. Do you really know what is your annual income? Maybe you know who much is your annual salary, but this is not the only factor that contributes to your income. A major factor that people mostly overlook is the contribution of taxes and other expenses to reducing your overall income.

Taxes and your annual income

Taxes are a fact of life for everyone living in a modern society. There is no way to avoid taxes, unless you want to risk going to jail. However, this doesn't mean that you should not carefully look at your taxes, and at the possibility of reducing them whenever possible. This is not only something possible, but is also the responsible and moral thing to do if you want to take good care of yourself and your family.

Spend some time checking your taxes. The most important thing to determining your annual income is knowing, for example, is what is your tax bracket. Some people don't have a clear notion of what their tax bracket is, and how they can avoid paying extra in taxes by using some legal ways to achieve this.

After you know what your tax bracket is, check all possible deductions that you can do to decrease your total taxes and improve your real annual income. American lose billions of dollars every year by not checking carefully the deductions that they are eligible to. This can severely affect your annual income.

Planning for your annual income

The first step in improving your annual income is to establish goals. If you spend too much time worrying about your life style, perspectives, and future growth, you should stop worrying and start planning. Planning is the first step in going from a life of mediocrity to a life of fulfillment and joy.

Planning can start with something very simple, such as saving 5 bucks per day. If you can achieve this, and save this money, you can start to aim at more important goals. You have to keep planning and making sure that your plan is being successfully executed.

Finding new income sources

The next thing you can do to improve your annual income, for example, is to find another area of revenue for your finances. For example, it may be something to improve your main business, if you are a small business owner. It can also be a side business, such as real state, web marketing, or some other money generating strategy.

The important is, you must always keep planning new ways to improve your annual income, and putting those plans into execution. If you keep the objective always in your mind you will surely be able to get a higher and higher annual income.

Send me your ideas!

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    • Research Analyst profile image

      Research Analyst 10 years ago

      Great Hub!

    • waynet profile image

      Wayne Tully 10 years ago from Hull City United Kingdom

      An inspiring hub, as anyone and everyone I know always stresses about their finances...even me too!!