Saturday, January 12, 2013

How to live like a millionaire and pay little tax.

There is no doubt that I live like a millionaire and like millionaires I do not pay much tax. How do I do it? As you can see  below I am extraordinarily fortunate.

I have a beautiful house looked after by the most competent housekeeper who sees to it that the house is kept clean and tidy. She is so careful too that I can safely leave dusting all my ornaments of which I have many in her capable hands. She sees to my clothes and laundry and even starches the sheets and napkins as she knows I enjoy the feel of cool starched cotton sheets.The going rate for a 40 hour week is around $1200 a week or $62,400 a year and is worth every penny to stay in my own home. Many solo elderly have to pay for this these days.t

I have a wonderful cook and every meal she cooks is a delight. She knows exactly what I like, is very good at presentation, all my meals are a delicious to eat and I know I my digestion is safe as she always washes her hands. For each meal I have to pay $30 plus food, around $45,000 a year.

I employ a professional gardener to keep my glorious garden looking it best. Good gardeners are not cheap $40 an hour at the moment my garden needs about an hour a day at least.  In Auckland everything grows so I need a lawn contractor at $30 per month, this is cheap at $360 per year. Then I need a tree pruner to trim all the trees and hedges at $420 a go at least three goes. $1,260. I also have a jobbing gardener for all those nasty jobs my other gardeners won't do like clear out the compost bin or do the occasional spray, organic of course and prune the odd branch out of the power lines and tackle my very pricky roses.

Then I have a competent general hand who clears out my drains and cleans out the bath plugs, washes the car every time it needs it, changes light bulbs, turns mattresses and clears out the attic. I also have an excellent house painter who does a thoroughly professional job inside and out. I have an old wooden villa and the ten year old paint job is still holding up. Good preparation is the key.

I also found a wonderful doctor. I needed her this year as I had a tough time with my NHS medical practitioners who it seemed were unable to diagnose my three illnesses  With out her I should be dead.  She took the trouble to listen to me and research my problems and find me excellent specialists. Medical expenses do not come cheap. A first class nurse was needed to make sure I ate properly, got enough exercise and enough rest. She has been brilliant and I owe my recovery to her. Again around $45,000 for a full time nurse and at least $15,000 for medical fees.

Then I have a first class inter net genius, that's what Apple Techs are called, who can help me with computer problems when needed. At $180 an hour. There are many others who feature during the year, my dressmaker for alterations, my manicurist, my decorator, my florist  oh the list goes on.

These wonderful people make my life a pleasure. They give me the chance to pursue my hobbies. I am extremely grateful.

If you add this up it costs hundreds of thousands of dollars. How can I afford all this? I do it myself.  $300,000 + is a conservative estimate of the cost of what I do for myself every year. There is earned income the one you go out and earn, unearned income from investments, both of these are taxed to the hilt  and real income which is the income you would have to pay for services if you had to employ someone to do the work for you. Most wage earners have to do this.

I am lucky as I can do so much for myself to a reasonably high standard. Over the years I have had little money and have had to learn to make the little I had go a long way. Today the fact that I can sing, dance and read music a bit has enabled me to make videos which I enjoy and would not be possible if I had to pay even one artist.

My income is tiny that is why I pay little tax but because I have learned all these life skills I live as well as any millionaire possibly better. Once I worked out what I would need to be paid to still maintain the standard of living I now enjoy. I should need a huge salary or be a billionaire.

When I can no longer look after myself  and have to pay agencies my standard of living will fall but in the meantime I am going to enjoy it. In a way it is a pity for the IRD I do not get paid for what I do as they are the ones missing out.

It is not what you earn but the way you spend it. Careful use of time and money together with a broad spectrum of skills can mean a most enjoyable life. however I do not think many will agree with me!

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