234 | Taxophobia

I hate taxes.

And it’s not because I have to pay them.

It’s because of the way they keep us from turning real financial wealth into other forms of wealth.

Fear of paying taxes loves to keep us from a better version of our life - “taxophobia” if you will.

You know the cycle…

Make money. Yay!

Realize later on that you have to pay taxes. Noooooo!

This cycle is disappointing, but not necessarily life altering.

It’s when we’ve made money, but still have control over when we will (or won’t!) pay the taxes that’s the real monster under the bed.

The sale of capital gains that would trigger a tax bill.

The withdrawal from a retirement account that would be complemented by taxes.

The cancelling of life insurance policies that would add to what we owe in April.

And so wealth tends to accumulate forever without being used for anything more than its “security” because we’re afraid to pay the tax.

Inevitably, you will pick a side - taxes as feature or taxes as a flaw of life on earth.

If you’re courageous enough to see them as a feature, it’s easier to experience the freedom your wealth provides.

Picking the other side often makes you stingy, skeptical, and grumpy.