Why making more money is more positive for personal finances than spending less - Making extra money increased positive personal finances - Many times from the perspective of personal finances, people tend to think that spending should be cut.

However, few people focus on looking at the part of income, which is even more important than what is spent.

Debate has always existed and will exist. On the one hand, there are those who argue that cutting expenses and being more frugal is the best way to generate wealth. While making cuts and living more frugally can help you reach your financial goals, it's true that the best way to generate additional capital and create more savings is to earn more money.

There are several reasons why it's better to earn more than spend less to achieve your financial goals. What are they?

Making extra money increased positive personal finances

First of all, because having a sustainable lifestyle, with some whims from time to time, makes you not feel private. It's the key to avoiding burnout as you pursue your financial goals.

To this must be added that lifestyle deflation due to the reduction of your expenses can be difficult to cope emotionally.

In this way, the first reason why it is preferable to generate more liquidity to your personal economy instead of focusing on spending responds to those psychological motivations and quality of life. It's okay to look at what you spend, but it may also be time for you to consider that you can earn more. Think about it.

Making extra money increased positive personal finances

Making more money is a great way to help you maintain your lifestyle and reach your financial goals, but it takes a little more time and effort to see the results.

Sometimes we make the mistake of thinking there's no way we can make more money. However, that is not true. It tends to be very conformist:”It is what there is".

In this sense, even though you probably have a few hours in which you can work each week and maintain your sanity, there are still many ways to generate additional compensation.

Making extra money increased positive personal finances

For more convenience, you can ask for a pay raise at work. If you opt for this formula, make sure you've thought of several ways to show that you're an asset to your company and the things you do that are beyond the call of duty.

Another possibility to start earning more is to take on additional jobs. This could be in your own position, allowing you to promote in the long term, or accept a part-time project. Even start your own business.

Something as simple as babysitting or walking dogs should be treated like a business, as it can use that capital to help it help you achieve your financial goals.

Making extra money increased positive personal finances

Your earning potential is only limited by your own creativity, while, on the other hand, you can only cut your spending to a certain limit. You have to keep paying rent or mortgage and have money for supplies or transportation.

While "earning more" may be the right formula in the equation, it would be unfair not to mention the only potential disadvantage of this approach: if you find yourself in a desperate financial situation, reducing your expenses is something you can do right away to help reap tangible results.

Again, there is a limited amount that you can comfortably cut from your monthly budget, but the impact will occur at the same time. Even with this disadvantage in mind, it is for many wealth management experts the best way to achieve your goals.

Making extra money increased positive personal finances

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The health crisis reaches the Tax Agency: it collects 18.6% less in the fight against fraud in 2020

The actions of the Tax Agency in 2020 were partly affected by the coronavirus crisis and this has influenced the collection of the fight against tax and customs fraud has plummeted by 18.6% in 2020, to 12,787 million euros, compared to the record figure of 15,715 million euros last year.

This is clear from the tax control data prepared and published this Thursday by the Tax Agency, that in total the collection for fraud in the record figure of 17,274 million euros, 9.9% more than in 2019, although it should be taken into account that certain specific items that distort the real data are included.

The agency itself warns that the results achieved in 2020 include records of reduction of payments in instalments for an amount of 4,487 million that will be “difficult to repeat “in other years. Sources of the agency pointed out to Digital Economy that the figure of 17,274 million is therefore not homogeneous or effective in comparative terms.

The situation generated by the health crisis, with suspension of administrative deadlines for a total of 78 days and mobility restrictions with different intensity throughout the year, led the Tax Agency in 2020 to a necessary adaptation of its tax inspection activity.

After a reactivation of the inspection actions in the months after the period of suspension of deadlines established in the context of the state of alarm, in autumn there were more limitations to mobility that once again affected the development and closure of actions in different areas, explains the AEAT.

In this context, the Agency decided to prioritize those actions that did not require the presence of taxpayers or their advisors, which led to an increase of 29.1% in information analysis actions, but also focused on actions on large companies, multinationals and groups, with an increase of 7.9%, while those actions that required physical presence were postponed until 2021.

Also postponed the proceedings with a usual period of maturation shorter, which reduced the performances of checks formal, until 27.921 (-67,9%), which contains the derivatives of plans of visits, with the completion of 14.533 records, 52.7% less than the previous year, and also the analysis of heritage and corporate, to 2.098 (-14,3%), concealment of activity and abuse of corporate forms, with 4.346 (-17,1%) and control of economic activities, 533.788 (-2,7%).

Last year, the AEAT carried out more than 1.62 million control actions on internal taxes, 2.3% less. The prioritization of actions led to the end of the year to resume part of the paralyzed, so that compared to a period of suspension of deadlines that represented 21% of the total number of days of the year, the number of files notified in 2020 finally only decreased by 7.8%.

At the same time, last year the TREASURY regularized tax bases for a total amount of 3,076 million euros in the field of international taxation of multinationals, which is 67% more than the previous year, based on 82 inspection checks carried out with the support of the National Office of International Taxation.

At the same time, ONFI participated in the management of 54 Previous Valuation Agreements (APA) with an estimated result, more than double that of the previous year, which means guaranteeing tax bases in the future for an amount of 3,477 million euros, 66% more than last year.

In the field of international taxation there are also new results in terms of actions on large technology companies, with the regularization of tax bases for an amount greater than 130 million euros and the upward revision of up to 800 million euros in the calculation of tax bases insured by APA for the coming years.

In addition, the control over individuals holding large assets of individuals allowed to settle debt amounting to 437 million euros to this taxpayer profile, representing a decrease of 28% compared to the previous year, but an increase of 25% compared to the figures two years ago. Thus, since 2018 - the year of the creation of the Central Coordination Unit for the Control of Relevant Assets-until now, almost 1,400 million euros have been settled in a total of 2,100 files.

The Unit has promoted the new tool based on analysis ‘big data ' for the detection of false non-residents with relevant assets, from which last year already began verification actions on 126 taxpayers.

Similarly, it continues to make progress in other projects already initiated, such as the automated identification of users of high-value homes in Spain formally in the hands of foreign companies, or the catalog of more than 570 suppliers of luxury goods and services from whose analysis can derive the emergence of tax irregularities of large fortunes and assets directly hidden behind instrumental companies.

In the framework of the fight against undeclared activity, and despite the difficulties to initiate proceedings on show for the health situation, the past year saw 2.157 inspections that revealed the existence of sales hidden, with dues paid to 521 million euros.

At the same time, fees and penalties amounting to 332 million euros were settled, 10% more than the previous year, based on actions carried out in previous years with the participation of the Computer Audit Units. In the last five years these actions have led to regularize 1,600 million euros in more than 22,100 minutes.

Regarding the control of submerged rents, which continues to highlight the induced effect that is supposed to send notices of tax data to alleged landlords during the last campaigns of the personal income tax. In five years, these notices have generated an increase of more than 252,000 filers, with a higher declared tax base of more than 3,000 million euros.

In turn, last year, the IT Area of the Tax Agency concluded the development phase of a new project for the detection of irregular billing and its results have already been made available this year to the Inspection Area for future control actions.

The inspector control over taxpayers from whom financial account information has been received abroad through the European directive 'DAC2‘, the CRS standard of the OECD and the’ Fatca' agreement with the US have allowed to liquidate in four years more than 630 million euros to almost 1,900 taxpayers, of which 195 million to almost 700 taxpayers have been concentrated in 2020.

Also in order to raise funds hidden abroad, settlements have continued on the basis of information collected by the National Bureau of Fraud Investigation on the use of cards issued abroad (‘offshore cards’).

This information has allowed the different territorial units of the Agency to settle debt amounting to 37 million euros in 2020 and a total of 133 million since 2018. In addition, last year there were registered files that affect 40 taxpayers with ‘offshore ' cards and that will offer additional results in the future.

In 2020, the process of identification for tax purposes of foreign taxpayers who generate taxable activity in Spain has borne its first fruits, which has allowed the census of 7,700 foreign merchants, the vast majority, companies, who sell through ‘online ' platforms.

As a result of this campaign, they have regularized VAT bases amounting to 400 million euros. The Tax Agency hopes to extend the open cooperative relationship in this field with e-commerce platforms.

Within the collection area, they have also continued to promote the most qualified actions to achieve the effective collection of tax debts. There was a 39% increase in the number of legal actions (579) brought in 2020 by the Debt Collection Agency.

In turn, there were 26.746 referrals, third party liability, 13.6% more, have been processed 665 records of prohibition on disposal of real estate companies whose shares have been largely foreclosed by belonging to a debtor (8.8% more), and were processed also 72.495 records (34% more) for the research heritage of the debtors that may be using different figures defraudadoras, such as the filing of societies or the use of straw buyers.

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