Life is too important to simply work for money. You want to enjoy life by having money work for you. So how can you rasie money fast to start investing or to start your own business. The 7 Ways to Get Money will hopefully help you towards your financial goals.
Getting started - $10,000 - $15,000
- Save it
- Sell something
- Decrease tax
- Increase income
- Equity
- Parent's equity
- Superannuation
STEP 1 - SAVING
The number one way I would suggest is saving money. In other words, “All great investors are great savers.' If you are not saving money now then you are never going to become wealthy until you start saving. It does not matter how
much you earn - you can save money. You must create a way to make yourself start saving. You must pay yourself first, it is the golden rule to wealth and you must look at ways to start saving money immediately. Even if it is only a small amount, it is a subconscious shift that is required. Predominately in Australia we are one of the worst saving nations on the planet, which is a real shame: New Zealand is even worse.
STEP 2 - SELL SOMETHING
The second thing to look at is, could you sell something? Consider having a garage sale.
Are there some things you no longer need or are willing to sacrifice in the short-term to set your self up financially? Do you
have a spare refrigerator, piece of furniture, spare bike, spare car or even a spare boat that you could convert to cash? Anything that you could convert to cash to come up with a few thousand dollars is great.
STEP 3 - DECREASE TAX
The third step is tax minimisation. Certainly many people are paying a large amount of income tax, especially people who fit into the middle class category in Australia and America. You should use some of that tax money for investing, either in
negative gearing into stocks or property where your tax money will pay for many of your investments. There are other ways; you could set yourself up as a consultant or contractor for your company rather than work as an employee.
Rather than earn a salary you can contract or consult to your employer where you will be paid the gross amount and you have to pay your taxes later, often at a lower rate. There is an 80/20 rule with it though where you have to have at least 20 percent of your income generated from another source. The rule is constantly changing, but there are often ways to
achieve that. You may want to discuss working as a consultant or contractor with your employer as many industries actually encourage this now. It is also known as outsourcing; a new buzzword in the 21st century.
If you have an investment property in Australia, you may not be aware that you can have your tax benefits contributed
weekly, rather than wait for a refund cheque at the end of the year, thus improving your cash-flow and take home pay.
STEP 4 - INCOME
The fourth step is to increase your income. If you can increase your income by an extra 10 per cent, that is an extra 10 per cent you could put aside for savings and investment. To increase your income is not that difficult. I will not go into too much detail now but I will give you a hint. If you want to increase your income, the areas you want to look at are how you can add more value. One way you can ADD MORE VALUE is to improve and develop your skills.'
The four skills are:
- The ability to think creatively and solve problems
- The ability to communicate more effectively
- The ability to market an idea or concept to bring it to reality
- The ability to negotiate
If you go work on these four skills, I guarantee your income will improve substantially because they are all skills in being able to add more value and increase your income. The reason most people do not generate a lot of income is because they just show up at work.
STEP 5 - USING EQUITY
The fifth step is what we call using equity. Many people have equity in their homes, equity being a portion of their house they actually own. Much of that equity could be put to good use, rather than just sitting there idly. The challenge with many people is that they become asset rich and cash flow poor because predominately we have been taught to get a good education, work hard all our lives, pay off the house and retire to the good life. Instead use equity while you are young.
STEP 6 - PARENTS EQUITY
Step 6 will kick starting your investments by using your parents' equity. If you do not have any equity yourself, perhaps your parents or grandparents do. Most people wait until their parents die to inherit their house. It is sad and I do
like to mention it to many people, but how many fights are there over their money and assets after someone dies? It is a sad and selfish part of human nature. Why wait until your parents die to inherit their wealth. Do the exact opposite; the law of opposites. Why wait? Why not ask to draw down your inheritance early. Discuss this with your parents and I'm sure they would do be willing to help you on your path to financial independence. Worth thing that can happen is they say No!. But you will never know if you don't ask them.
STEP 7 - SUPERANNUATION
Look at setting up a self managed super funds where you can actively invest and manage
your own superfund. In Australia, superannuation is compulsory. In the United States, it is referred to as a 401K account. If you could access some of your super well before retirement age, would you be more motivated to consider putting more
money into super? The obvious answer is yes! with superannuation despite the government's restrictions, there are still ways that you can actually use your super to be actively investing and that is something you may want to consider further.
Discuss this with your tax accountant to learn and understand the tax implications and costs of setting you a self managed super fund.
Make sure you seek professional advise before investing. The above is not deemed as financial advise, just some ideas to help you create the extra money you need to start investing! Enjoy
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