How Legacy Math by The Money Council Helps Entrepreneurs Build Wealth and Leave a Lasting Legacy

Summary: A different outlook on how to infuse financial literacy solving business challenges!

What is Legacy Math™?: Redefining Financial Literacy for Women Entrepreneurs

Let’s talk about legacy,

Sis—the kind that lasts long after you’re gone. If you’re like me, you’ve experienced moments where financial conversations felt intimidating or even out of reach.

But here’s the truth: building multi-generational legacy isn’t just a dream; it’s a formula.

I call it Legacy Math™:

Wealth – Taxes = Legacy.

It’s not just a concept—it’s a framework designed to help you master the intersection of wealth accumulation and strategic tax planning to create a lasting legacy.

It's where the rubber meets the road.

A Legacy Built on Lessons From the Start

My journey with financial literacy started early—like, 9 years old early.

Back in 1997, as a 4th grader in East Point, Georgia, I was a teller at a school bank in partnership with SunTrust. I thought having $50 in my name was winning!

Fast forward to now, as a mom to 6-year-old twins, I see how important it is to go beyond basic financial literacy.

What I learned then shaped how I approach The Money Council® today: creating practical, transformative tools to help women entrepreneurs steward their wealth with intention.

Legacy Math™ at Its Core

Legacy Math™ connects two fundamental pillars of financial well-being: Wealth accumulation and tax reduction strategies which come together to form Legacy Math.

Wealth Accumulation Variables

Strategically building and managing your money to create long-term financial stability.

Here are a 9 Variables to consider during your wealth accumulation process.

1. Income Streams

Variable: The number and diversity of income streams significantly impact wealth accumulation.

Examples:

• Adding passive income streams to your business portfolio to earn a 6-figure profit.

  
  

• Diversifying business income through new services or digital products, like eBooks or courses.

  
  

• Launching a subscription model for recurring revenue.

2. Pricing and Profit Margins

Variable: Setting prices that reflect the value of your services and maintaining healthy profit margins is critical.

Examples:

• Raising your prices after validating your expertise in the market.

  
  

• Conducting a profit margin analysis to identify high-cost services that aren’t yielding strong returns.

  
  

• Transitioning from hourly billing to value-based pricing to capture the true worth of your services.

3. Investments

Variable: Investments made into assets (business or personal) can multiply wealth over time.

Examples:

• Investing in business growth, such as marketing strategies or hiring key team members to scale.

  
  

• Allocating personal funds to retirement accounts like an IRA or Solo 401(k).

  
  

• Building a stock portfolio or acquiring real estate to generate future income streams.

4. Debt Management

Variable: The way you handle debt directly influences how much of your income contributes to wealth.

Examples:

• Paying down high-interest credit card debt to free up cash for investment.

  
  

• Leveraging low-interest business loans to fund strategic growth (e.g., buying equipment, opening a new location).

  
  

• • Consolidating or refinancing loans to reduce monthly payments and increase cash flow.

5. Emergency Fund and Savings Rate For Aspiring Women Entrepreneurs

Variable: The percentage of income saved impacts financial security and future growth opportunities.

Examples:

• Build an emergency fund that can support you as you build your business. This would include the invstment required for the business and your living expenses during a 1 year period.

  
  

• Setting aside a fixed savings rate, such as 20% of business profits, for future opportunities.

  
  

• Using savings to fund business expansions instead of taking on new debt.

6. Wealth Allocation

• Maintaining a balance between liquid assets (cash on hand) and long-term investments.

  
  

• Allocating a percentage of income to high-growth investments, for income streams that will poisition your business for growth.

  
  

• Reinvesting a portion of profits into business training, trademark policing, or technology upgrades to boost efficiency and make better business decicisions.

7. Lifestyle Inflation

Variable: Keeping lifestyle inflation in check ensures more of your wealth stays invested for the long term.

Examples:

• Budgeting personal withdrawals from the business to avoid overspending.

  
  

• Choosing to delay luxury purchases until you hit specific financial milestones.

  
  

• Keeping business and personal expenses separate to avoid blending funds and sacrificing your corporate veil through you LLC.

8. Business Structure

Variable: The legal structure of your business impacts how wealth is accumulated and distributed.

Examples:

• Transitioning from an LLC to an S-Corp to reduce self-employment taxes.

  
  

• Creating a holding company to separate high-risk ventures from stable income sources.

  
  

• Creating parent companies to cosolidate all income to tax it a a Corporate rate lower than what shows up on your personal return.

  
  

• Setting up trusts to protect business assets and ensure they transfer to future generations.

9. Intellectual Property (IP)

Variable: Monetizing your skills and talents through intellectual property builds additional revenue streams.

Examples:

• Trademarking your brand with through a holding company as described in the business structure concepts, and licensing it to other companies.

  
  

• Developing and selling courses, eBooks, or white-label content through the license you own that no one can take from you.

  
  

• Protecting patents or unique business processes to create long-term competitive advantages.

Tax Reduction Variables

Using the flexibility of the tax code to minimize taxes and maximize what stays in your pocket legally.

Together, these pillars empower women entrepreneurs to create a legacy beyond dollars and cents—it’s about freedom, choice, and impact.

Here are a 8 Variables to consider during your tax reduction process.

1. Managing Deductions, Ethicially

Variable: Maximizing deductions to reduce taxable income.

Examples:

• Home Office Deduction: Deduct a portion of your rent, utilities, and internet costs if you use a dedicated space for business.

  
  

• Mileage and Travel Expenses: Track miles driven for business or trips taken for client meetings.

  
  

• Education and Training: Deduct expenses for professional development, certifications, and online courses.

2. Hiring Family Members Following IRS Guidelines

Variable: Shifting income within the family to lower tax liability.

Examples:

• Hiring your children and paying them a reasonable wage for business tasks (under IRC Section 12,104, wages paid to minor children are exempt from FICA if your business is a sole proprietorship, disregarded entity, or partnership).

  
  

• Use those wages to fund a Custodial Roth IRA for your child, or even whole life insurance, allowing tax-free growth over time.

3. Adding The Right Tax Status With The IRS

Variable: Choosing the tax elections with the IRS to minimize taxes is important. Please note this is different from

Examples:

• Electing to be taxed as an S-Corp to avoid paying self-employment taxes on distributions, saving thousands on Social Security and Medicare taxes.

  
  

• Electing to be taxes as a C-Corp to avoid the income being co-mingled on your personal taxes and reduce your federal and state income taxes.

  
  

• Separating business income from personal income through a parent company to protect assets and reduce risk.

4. Depreciation of Assets

Variable: Using depreciation rules to offset taxable income.

Examples:

• Leveraging Section 179 to deduct the full cost of equipment or software in the year it’s purchased (rules apply).

  
  

• Writing off the depreciation of real estate investments to offset rental income.

  
  

• Being wise about the assets you purchase and ensuring you have a plan outlined for income against the depreciation benefits received.

5. Retirement Contributions

Variable: Reducing taxable income while saving for the future.

Examples:

• Maximize contributions to Solo 401(k)s or SEP IRAs as a business owner, reducing your taxable income for the year.

  
  

• Pair retirement contributions with profit-sharing to maximize savings while benefiting employees.

  
  

• Implementing company match strategies for retirment contributions to further reduce business income, strategically.

6. Health and Wellness Benefits

Variable: Tax-free employee benefits.

Examples:

• Setting up a Health Reimbursement Arrangement (HRA) to reimburse employees (and yourself) for medical expenses tax-free.

  
  

• Offering a high-deductible health plan (HDHP) paired with a Health Savings Account (HSA) for triple-tax benefits: pre-tax contributions, tax-free growth, and tax-free withdrawals for medical expenses.

7. Charitable Contributions

Variable: Reducing taxable income while supporting causes aligned with your values.

Examples:

• Donating appreciated assets (like stocks) instead of cash to charities for a double benefit: no capital gains tax and a full deduction for the fair market value.

  
  

• Creating a Donor-Advised Fund (DAF) to maximize your charitable giving while controlling the timing of distributions.

  
  

• Outling plans of a Private Foundation to transfer benefits from your for-profit entity to a 501C3 for tax-deductible benefits while stewarding the resources in your community.

8. Loss Harvesting and Carryforwards

Variable: Using losses strategically to reduce taxable income.

Examples:

• Offsetting capital gains with capital losses through tax-loss harvesting in investment accounts.

  
  

• Applying business losses to future years (Net Operating Loss Carryforward) or offsetting other income categories through active participation in the business

Where Are You in Your Legacy Math Equation?

As you can see, there are 17 total variables broken down between wealth and taxes that create their own math dynamics.

Think of these 17 variable that comprise of the ultimate end goals. After implementing some or all of the strategies outlined, what remains? Legacy!

So where are you? Expand the individual list below to take stock of where you are and how you can improve your legacy math variables.

When you work with The Money Council®, these pillars are our compass for ultimate obedience in helping you to solve your Legacy Math!

1. Do You Need to Activate Wealth?

Legacy starts with wealth, and wealth starts with strategy.

Ask yourself:

• Are you bootstrapping, building, or inheriting wealth?

• Are you making the most of the resources you already have?

💡 Pro Tip: Don’t get stuck at Google your way through starting your business. Connect with a CPA in the beginning to organize your ideas to maximize your wealth, strategically.

2. Do You Need to Slash Taxes?

Taxes are often seen as a burden, but they’re the most flexible variable in your Legacy Math™ equation.

Ask yourself:

• Are you layering strategies to maximize deductions?

• Do you have clear, actionable guidance tailored to your unique business needs?

From hiring your kids to converting your guest room into a workspace, the strategies are endless—but execution and documenting your compliance with the Tax Code matters.

3. Do You Need to Preserve Legacy?

Wealth and tax strategies mean nothing if you don’t preserve what you’ve built.

Ask yourself:

• Do you have the right legal structures in place to protect your assets?

• Are you involving the right experts, like estate planners or financial advisors, to safeguard your legacy?

Once you’ve activated wealth and slashed taxes, The Money Council® helps you connect with vetted professionals to secure the future for your family and community.

Legacy Math™ Is More Than Numbers—It’s About Vision

Just like a nutrition plan for your health or an annual physical to assess where you stand, Legacy Math™ is the roadmap to your financial well-being.

It’s about understanding where you are, where you want to go, and making intentional decisions to bridge that gap to steward your business resources.

Whether you’re starting small or scaling big, the framework applies to every stage of your journey.

Take the Next Step Toward Your Legacy

It’s not just about making money. It’s about stewarding your resources to create generational wealth and impact.

💡 Your Homework:

1. What’s one financial decision you’ve been putting off?

2. How can you activate wealth, slash taxes, or preserve your legacy in the next 90 days?

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✨ Let’s make 2025 the year you finally solve your Legacy Math™.