Edmonton's #1 Rated Accounting on Facebook

 

Grüezi!

I am Christian Thut from Switzerland.  This is the story of being penniless to building wealth with no contacts, no network, no role models.

 

What follows are my most important lessons from 12 years of developing one of Canada's most efficient accounting solution for Canada's manufacturing and service industries.  With efficiency being defined as value created/time spent creating value.  The one most important rule is consistently and intensely focusing on difficult hard-to-replicate skills that deliver value to people – day in day out.

 

Merci vielmal (Swiss German for Thank-you) for taking the time to read this.


I was never destined to become "the accountant".  I started programming BASIC with a Commodore VIC20 when I was 11 years old.

 

I spent my time using the tools at my disposal – analytical math to try to solve problems: I developed mathematical optimization algorithms precisely correct volumes and rates of administration for intravenous medications.  

 

I began my career at the Swiss global company, Roche and then I worked for the Reformed Church Uster in Switzerland. Reuniting with the Protestant work ethic and virtues was a refresher on my Swiss upbringing which emphasized discipline and responsibility.  When you have nothing, you must trade time for money while you develop useful skills.

 

Many financial blogs focus on cost-cutting, but the truth is that it's all worthless compared to the big 3: taxes, payroll, and housing.  Focus on those by building a scalable business while optimizing your taxes and your mortgage interest.

 

We are at war. It's not about east or west, left or right. It's about wealth and status. Which side are you on?

 

The status elites use the CRA to wage war against wealth elites. It is hard to know your enemies since real life is not simple categories but rather marginal effects.  One way to stay safe from an audit is to avoid being a status seeker. Status seekers are net reducers and contribute less in terms of taxes than they consume. This means there is no number to keep you safe, but rather how your numbers relate to each other.

 

We went down a downward spiral attempting to accommodate both sides. By December 2016 we cut the last REDUCER from our roster and have had no new audits since. People who need attention are a waste of time. By the end of 2016, the status elites have been losing worldwide.

 

If you are happy leasing BMWs when you are broke, then you are going to find guidance elsewhere. Status seekers waste their limited resource (time) pretending to be rich while they outsource the most important job of upbringing their children.  Meanwhile, every week gets better and better for us. For our clients, $3M+ in 10 years is nothing spectacular. 

 

THUT: Terms of Service

  1. Have a compelling and focused mission that leverages proprietary technology (skills/equipment) unacquirable by the masses. When in doubt use your name in your business to show accountability.
  2. Learn to scale - fixed costs of creating the output are spread over high enough customer lifetime value to have a pricing advantage for inputs.
  3. Specifically, target fear to dominate niche markets before scaling to adjacent markets with more employees and more capital assets (software/equipment).
  4. Use your business account (bank/credit card) for expense transactions vs. cash or personal debit/credit cards.
  5. Have necessities automatically delivered in biweekly shipments. "Shopping" is done only once per year - towards the end of the fiscal year to accelerate access to CCA on capital additions.
  6. Abstain from mortgages, debt, and rental properties before having healthy cash flow from a scalable corporation (not trading time for money). An income property is only considered after the mortgage is paid off on the principal residence. Dividing the net operating income from a rental property by the cost of the property they get the investment yield. From this value, they can determine if it is economically viable to rent out the property or sell it. Having a positive cash flow is not good enough to determine economic viability.  In German, borrowing is 'schulden', the same word for sin.  Rent when young and when old make either a minimum 20% down-payment on a home less than 2.5x their gross annual household income. Minimum 30% for a home that costs up to 4x their gross annual household income.
  7. Live far below your means. Easily done when their after-tax earnings are at minimum 2x-4x the median.  Set aside 50-90% of all the money collected until you can fund your lifestyle entirely with passive income. Then 100% of your active income can go towards riskier investments. Losing $1 million dollars when you still have $3 million is worth the risk when you have the chance of being worth $10+ million. 
  8. Everyone in your life is either moving up or out of your life.  Selectively choosing the people they surround themselves with is essential. All regrets in life involve wasted time. This is the only thing you can never get back so never waste a second on marginal returns, short-term gains and people with no value. They have no sympathy for those who created their own mess. Poor choices = poor character. This eliminates the empty work that plagues regular people and allows them to focus on what really matters. It is amazing how our customer service improved when we focus only on people that like us.  Not a big deal, just not the same interests.   We don’t have a problem with others choices – we just don’t cater to everyone’s needs.  They waste their limited resource (time) pretending to be rich while they outsource the most important job of upbringing their children.  Meanwhile, every week gets better and better for us.  Best part: coming home to an amazing family - stay at home parents are the backbone for society & raising the next generation.

 

 Continue the journey with us and follow our blog, subscribe to receive the latest news & tips from THUT

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After 12+ years our blog is still the least influential financial blog on the internet, and our 135 subscribers is a tiny fraction of millions of small business corporations in Canada.  We are not driven by money and popularity, rather we driven by legacy, greatness, and hyper-focused on adding value.

 

To protect our clients from ever-increasing fraud and audits, we have redundant security elements in place including the same encryption technology used by Swiss Banks and the most secure layer (SSL) Certificate Authority.  However, with over 40,000 employees, the CRA will be the reason your information is compromised.  What ultimately protects our clients is the fact there are only 3 humans working in our office (all family), so we build genuine relationships with our clients which keeps them safe.

 

 

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Help@ChristianThut.com 1 (780) 761-1688, THUT: 12906 54 Street, Edmonton, Alberta (Canada)

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