Every business owner has a real life number. It's the number that connects everything behind the scenes you are working towards in your real life; things like your next house, next big investment, or your pension pot.

This real life number can and should be linked with everything that the business is working towards. It is the key to achieving the life you really want, both now and in the future.

However many business owners can find themselves controlled by their business. They become wrapped up in running the business and unable to focus on improving their lifestyle. Everyone desires the benefits good work brings but there has to come a point where the business starts working for you and towards the lifestyle you want to achieve.

One of the ways you can do this is by understanding how tax advice and consultancy can help you achieve your real-life number tax efficiency.

While you might not know it, every business owner has a Real Life Number.

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This number is everything that happens behind the scenes that you are working towards in your real life. It includes things like your next house, next big investment, or a well deserved holiday! By considering the tax efficiency of seven key areas of your life together with your business, you can achieve the life you want quicker; starting by identifying your real-life number.

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This real life number can and should be linked with everything that the business is working towards. It is the key to achieving the life you really want, both now and in the future.

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However many business owners can find themselves controlled by their business. They become wrapped up in running the business and unable to focus on improving their lifestyle. Everyone desires the benefits good work brings but there has to come a point where the business starts working for you and towards the lifestyle you want to achieve.

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💪 Get More Value From Your Business

Once you have a stable business, you can and should start to consider your Real Life Number. When we say ‘stable’, we mean your business has a good track record of performance:

• With regular recurring income,
• Growth over a prolonged period of time,
• And has withstood difficulties.

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It’s this foundation of stability that is a great indicator of the value of a business which at some point you will want to capitalise upon, when looking to exit. However, before this time, you can and should start to look at the different ways to extract more value for you, and your family, to achieve your real-life number and financial freedom quicker.

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🚧 Discover Your Real Life Number

If you are serious about getting the most value out of your business, to achieve the things you want from life tax efficiently, you have to be ready to think hard and share information on the below seven areas of your life. Because your version of financial freedom is yours.

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1. Your Immediate Family

Planning across spouses, children and parents (and key family members). By extracting maximum value from your business this will enable you to achieve financial freedom quicker.

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2. Business Protection

Planning to protect yourself, your partner, your children and the things that you have put absolutely everything into, your business, is important now and into the future. Your position towards protection investments will and should change through the course of your life. Think about how your outlook might have changed from when you:

• Bought your first home
• Lost your first loved one
• Experienced your first relatively serious illness
• Had your first child

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We need to look into whether it is beneficial for you, and for your business to consider these investments, especially when the tax efficient ones.

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3. Lifestyle

As you move through life there are big investments you will make, to improve your lifestyle. You will build wealth as well-being, health, happiness or financial wealth. These are tangible assets that you and your family will use and benefit from. For example…

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Your dream home, the feeling of making progress towards it and the happiness it brings.

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The next car(s) you need, the 7 seater people carrier, or the car you actually want!

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Something of your own to escape to, a holiday home, or a motorhome, boat, aeroplane or helicopter!

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What does your business need to achieve in order to reach your personal goals?

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4. Family

As a parent, you want to invest in your children. You will want to provide them with what you had, or with more than what you had. Ultimately, you just want to make sure they can make their own way through life and thrive. Perhaps you want to help your children with:

• Education costs - private school, vocational qualifications, University, professional qualifications
• Buying a car
• Buying their first home
• Investment savings
• Starting a pension as a child

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5. Lifetime Investments

As a business owner, working towards pension investments can be a great way to reduce a corporation tax bill with the right planning! Other lifetime investments are investing to enable a larger future investment e.g. taking advantage of your £20k ISA allowance or safe stock market investments can be a way of generating a safety net for your family or provide comfort knowing your money is being put to work, not just sat stagnant.

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6. Business

Investing in your business is a lesson learned that pays back over and over. Extracting the maximum value from your business ensures you are being tax efficient however takes the cash out of the business. This extracted cash can be invested back into the business to supplement the growth of the company and then be extracted again Tax-Free!

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🤔 Are You Ready?

If you are serious about getting the most value out of your business and achieving the things you want from life tax efficiently, you have to be ready to think hard and share information on the above seven areas of your life. Because your version of financial freedom is yours.

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If you are ready to get a better understanding of the tax position of your business, calculate your real-life number, and put a tax-efficient plan in place, we can help you get you there.

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Get Started with Saint Today!