This week join Dr. Sovinsky as he discusses tax time stress with Dr. Douglas Sea, author of DC Money, chiropractic coach and business mentor.  Whether you’re a new or seasoned chiropractor, struggling or savvy, Dr. Sea has a developed a truly systematic approach to managing your finances that will allow you to create a lifestyle of chiropractic affluence.You only have three choices when it comes to dealing with taxes.You can react, resent or respond.

You can get Dr. Sea’s book “DC Money” Kindle version by clicking here.  To order the paperback click here

In this episode Dr. Sea and I will discuss a strategy for responding. As a chiropractic coach and business mentor for the past 15 years, Dr. Sea has counseled many on a variety of challenges, but one of the most difficult to gain traction with is Tax Trouble. In this episode he will help you solve this dilemma once and for all.

 Tax day is a day of reckoning. What if you discover that you need to write a bigger check than you thought; suddenly you go from flush to broke or maybe even overdrawn!

This is an emotional roller coaster that is not fun to ride and can derail you from desiring to do more. Your attitude and self –talk becomes, “Really why bother because the government just takes it all anyway.” You get invited to your own pity party. Has this happened to any of you or just me? If this is your only take-away from reading listening to this podcast, this one idea will be worth your time.

 The best solution is prevention. My experience is the IRS makes a very poor business partner and if you are having tax issues this really becomes priority one to get handled and cleaned up. I have seen way too many doctors work so hard, do very well, fail to plan and end up in what I refer to as “Tax Jail.” They aren’t really in jail but the level of bondage they experience is just as palpable as if they were incarcerated. Their spirit and their willingness to produce are definitely locked up!

Taxes are paid infrequently, typically quarterly, and therefore the payments can be quite large. I have paid my fair share of large tax checks and believe me, this can be a painful thing to do. If you don’t have the money and are not emotionally prepared this experience can be devastating. I found the secret is to absolutely keep your funds dedicated to tax payments in a separate account and entitle it the “Tax Account.”

 The key to a healthy Tax Account is to plan the expenditure. Technically you may only pay taxes annually or quarterly, but the secret is to be contributing to your Tax Account every week. Just do it little by little. Ask your accountant what your top marginal tax rate is, and each week, put that percentage of your earnings into the Tax Account.

When I first taught the 7 Accounts System a decade ago or more, and the stories from my students are pretty amazing. The last time I taught it, four or five of the doctors actually sent me pictures of what the seven accounts meant to their life, from travel to family. One doctor sent me a picture of a giant check with his picture on it. The amount on the check was what he paid to the IRS, (I believe the amount he paid to the IRS was more than he made before he started coaching with DC Mentors) this was huge for him because before he always hated paying taxes and it was always a stressful time. By utilizing the system he has his tax money saved and there is no associated strain paying the IRS; he knows the more he pays them the better off he is, as well.

The Seven Account System is a truly systematic approach to managing your personal finances. Creating a lifestyle that allows you to pay cash for purchases, stay current on taxes, pay down debt, create wealth, donate to worthy causes and, of course, have some fun along the way.

The post Don’t Get Caught by Surprise at Tax Time – A conversation with Dr. Douglas Sea – Podcast Episode 017 appeared first on DC Mentors.