8. Taxes
The only two certainties in life are death and taxes.
Taxes are the single biggest expense you will pay throughout your life. If you want to achieve your financial goals, it makes sense to minimize your tax bill as much as legally possible (keyword being legal)!
Tax evasion is when you illegally avoid tax, but tax avoidance is when you avoid tax legally. Tax avoidance is actively encouraged by Governments through tax-efficient saving accounts.
The wealthy have a good understanding of the tax code and even hire tax advisors to organize their money and assets. The poorest in society tend to have less knowledge of taxes and are unaware of the savings that are available to them.
For example, one of the best ways to minimize your tax liability is to understand the tax code, e.g., using tax-exempt savings accounts or operating under a business instead of an individual.
Tax is a huge subject, but it is one of the most important areas to address if you want to build wealth.