Economics Chapter 11 Vocabulary: Dave Ramsey - Careers and Taxes

Steps to applying for a job:

1. Introduction Letter 2. Cover Letter and Résumé 3. Phone Follow-Up

Five Lands on the Road to Awesome:

1. Learning 2. Editing 3. Mastering 4. Harvesting 5. Guiding

Five Things Successful People Always Do:

1. They start. 2. They fight fear. 3. They ignore haters. 4. They stay humble and hungry. 5. They give to others.

Ways to stay positive:

1. Write them down 2. Refute them with truth 3. Share your voices

Résumé

A brief account of one's professional or work experience and qualifications.

Cover Letter

A letter that is always accompanied by a résumé; used to inform a prospective employer of your interest and capabilities as they relate to a specific employment opportunity.

Earned Income

Any income (wages/salary) that is generated by working.

Earned Income

Any income (wages/salary) that is generated by working. This type of income is taxed at a higher rate than any other type of income.

Taxpayer Obligations, Interests, and Penalties

As a taxpayer, there are certain legal obligations you are expected to meet when managing your taxes. If you fail to pay your taxes on time, it can result in IRS penalties, and in turn, compounding interest that can make your tax debt much larger. The IRS has the power to garnish your pay, take money from your bank account, and place a lien against or seize your personal property.

Goal Guidelines:

Be measurable Be specific Have time limits Be your goals Be written down

Areas of your life that it is important to have a goal for:

Career, financial, spiritual, physical, education, family, and social.

My DISC Personality Profile

Decisive: Characteristics - Driver; results-oriented; overlooks details; focuses on the bottom line; can hurt feelings Concerned with - When Animal - Lion

Money and Happiness

Don't get these confused!

Tips for during the Interview:

Dress professionally and be well-groomed. Do not slouch or chew gum. Arrive 10 to 15 minutes early. Be personable. Connect with the interviewer. Be yourself. You will be perceived as authentic and trustworthy. Be organized. Bring extra copies of your résumé and a notepad to jot things down. Keep it positive. Never say anything negative about past employers or work experiences. Show interest and be enthusiastic. Ask questions that build on your interview discussion. Do not bring up the issue of salary during your first interview. Find out all you can about the general salary levels of the company beforehand. If the employer asks you about salary expectations, try to give a general answer. Ask your interviewer when you can expect to hear from them.

Three Types of Income:

Earned income, portfolio income, and passive income.

The Three Forms of Taxes:

Federal income tax, state income tax, and FICA (Federal Insurance Contribution Act) tax.

Social Security

If federal insurance program funded by taxpayers dollars that provides benefits to people who are retired, unemployed, or disabled.

Portfolio Income

Income generated by selling an investment at a higher price than you paid for it.

Portfolio Income

Income generated by selling an investment at a higher price than you paid for it. This income is sometimes referred to as "capital gains" because that's how the money is taxed by the federal government. This type of income is often taxed at very high rates, sometimes as high as earned income.

Passive Income

Money earned on a regular basis with little or no effort required to maintain it. Some things that produce this income are real estate, intellectual property like books or internet content, or a business in which the owner is not actively involved. This type of income often allows for the most favorable tax treatment.

The difference between gross pay and net pay:

Net pay describes your pay after ductions; gross pay is before.

Interviews: Dave's Advice

Present yourself well. You are the product, so make it the best one available. Be on time, address everyone by name, offer a firm, confident handshake, and maintain eye contact at all times. Designate a time to follow up after the interview - and do it!

Taxes on Consumption:

Sales tax and excise tax

Consumption

Sales tax and excise tax are both taxes on:

Tips for after the interview:

Take time to write down notes about anything that might influence your decision of whether or not to except the position. Write a thank you note to the employer within 48 hours of the interview, even if you are not interested in the job.

Sales Tax

Tax on goods and services that goes to your state or local government. Sales tax is used by states as a source of their income, and each state sets its own tax rate.

FICA (Federal Insurance Contribution Act) Tax

Tax that pays for benefits that workers and families receive for either Social Security or Medicare. This tax is a flat tax (meaning the rate is constant). A single rate of 12.4% is applied to your income. Half of this tax is paid for by the employee in the form of payroll withholding. The other half is paid by the employer.

Federal Income Tax

Tax used to support government programs. This is where the federal government gets much of its money. You work. They spend.

State Income Tax

Tax used to support state services (if you work in the state without a state income tax, you will not have this withholding).

Property Taxes

Taxes paid by anyone who owns property such as land, a home, or commercial real estate.

Income Tax

Taxes paid out by anyone who earns an income.

Excise Tax

Text that is levied on certain goods produced within a country and is sometimes referred to as luxury tax. This is used by both the state and federal government. Taxes on items such as gasoline, beer, liquor, cigarettes, and airplane tickets are examples of this tax.

Tax collection and tax law enforcement

The Internal Revenue Service (IRS) is the federal government agency responsible for:

Internal Revenue Service (IRS)

The federal government agency responsible for tax collection and tax law enforcement. It was created during the Civil War in 1862 to enact a national income tax to pay for war expenses.

Introduction Letter:

The primary purpose of this is to introduce yourself to a company. This is usually your first point of contact with a business.

Personal Branding

The process by which we "market" ourselves to others; involves highlighting personal strengths, interests, and unique qualities and identifying goals.

True

True/False: Once you've defined your dream, your goals should be the practical application of how you're going to accomplish your dream.

False

True/False: Taxes are an optional contribution to local, state, and federal governments.

Why it is important to understand your personality profile:

Understanding your own strengths and weaknesses should be a top priority. Remember, people who only work for money are miserable because there is no fulfillment or meaning in their careers. You must find something that blends your skills, abilities, personality traits, values, dreams, and passions.

Questions to consider when choosing a career path:

What do you love to do? What are you naturally good at? What hobbies and interest do you already have that could turn into a career?

Persistent Follow-Ups and Networking

What interviews and jobs come from.

Cover Letter and Résumé

Your cover letter should be specific to the position you are applying for, relating your experience, skills, and experience to the position for which you are applying. Your résumé should present your background and skills to an employer.