He knows the code: Matthew Bastien makes keeping up with his taxes profitable.

THERE'S NO POINT IN HATING OR fearing taxes--they are a fact of life. It's far smarter, says 25-year-old Matthew Bastien, to study and keep the upper hand in the tax game. While others frequent online chat rooms, Bastien surfs MSN and Yahoo Finance.

Before the systems engineer dashes off to work in the morning, he makes sure he catches CNBC, and if he has down time at work, he sometimes fiddles with his tax-savings vehicles. Bastien has a Both IRA and a 401(k), and because he has operated his own IT consulting business since 2004, he is entitled to a SEP-IRA, which he opened in late 2004.

"One of the reasons I started my company is for the tax shelter," says Bastien, who predicts his consulting business could make $30,000 this year. The New York resident envisions the day he'll earn more than the $70,000 he pulls in at his full-time job.

Bastien's attention to saving money through savvy tax management shows his strong embrace of DOFE principle No. 4: to engage in sound budget, credit, and tax management practices.

Although he can't take the home-office deduction because he owns a one-bedroom co-op, he takes advantage of deductions for business expenses such as his cell phone, software and other technology equipment, travel, and his car. He further reduces his taxes by participating in a Flexible Spending Account at work. Bastien estimates that his various tax strategies save him about $5,000 a year.

As particular as he is about taxes, he is equally committed to budgeting. "I have a monthly budget that I don't exceed," he says adamantly. He uses an Excel spreadsheet to track his spending on food, clothing, the mortgage, and other monthly bills. "When you pay attention to your bills, you can find all kinds of ways to save money," he says.

Although he may be an icon of discipline now, that wasn't always the case. After overextending his credit, Bastien, a part-time student at Baruch College, made attempts to get back on track financially. "Doing a budget was the first thing I did to get myself on track."

During his five year "free-flowing period" as he calls it, he ran up $22,000 in credit card debt, fulfilling his dream to travel. He's visited Brazil, Europe, several places in the Caribbean, and more.

Bastien no longer uses his credit card unless he can pay off the full amount immediately. He still owes about $16,000, which he vows to pay off by the end of 2006. Using a particularly painful remedy, he plans to use more of his salary in addition to some of the revenues from his business to pay off his debt. He can do this because he's single, has no children, and doesn't have much other debt.

For the time being, Bastien is just happy to have learned from his mistakes. "I'm particular about paying my bills on time, and I'm mindful that I have a good credit score, as I want to buy a bigger house soon," he says. "Having great credit will serve me well as I transition into doing my business full time."

And because he's learned from his mistakes at an early age, Bastien has decided to focus on his retirement savings. He estimates that between his Roth IRA, 401(k), and SEP, he'll sock away $30,000 this year, adding to the $26,000 he's already saved for retirement.

"Five years from now I want my net worth to be $750,000, between my company, rental properties I'll buy, my home, and other assets," says Bastien. "I'm putting myself on an aggressive schedule."

PRINCIPLE 4

To engage in sound budget, credit, and tax management practices

Bastien offers this advice on taxes and money management:

* School Yourself. Bastien is a fan of self-teaching. He recommends studying retirement and tax-planning issues over the Internet. "Many sites have tutorials that teach you important terms and concepts, like how the stock market works," says Bastien. "The point Is. you want to know something before you even seek out a financial planner or an accountant."

* Know Your Priorities. "You can't have everything you see on television and in the media," says Bastien. Forget about trying to have it all. Set goals and boundaries for what you purchase. "Stick to your plan and your budget, otherwise you'll overextend yourself, and before long, you'll be in over your head."

* Use Credit Wisely. Only use your credit card if you can pay off the bill in full each month. If you can't, it may be a sign of trouble--you might be buying more than you can afford, or relying on credit cards to bridge a financial gap. Pay your bills promptly to avoid late fees and higher interest rates.

Declaration Of Financial Empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment. I pledge the following:

1] To use homeownership to build wealth

2] To save and invest 10% to 15% of my after-tax income

3] To commit to a program of retirement planning and investing

4] To engage in sound budget, credit, and tax management practices

5] To measure my personal wealth by net worth, not income

6] To be proactive and knowledgeable about investing, money management, and consumer issues

7] To provide access to programs that will educate my children about business and finance

8] To support the creation and growth of profitable, competitive black-owned enterprises

9] To use a portion of my wealth to strengthen my community

10] To ensure that my wealth is passed on to future generations